Annals of the University of Oradea: Economic Science (Dec 2019)
THE EFFECTIVENESS OF THE SYSTEM OF QUALITY CONTROL IN ACCOUNTING PRACTICES
Abstract
Any accounting firm need to develop a system of quality control (SQC), which have the purpose to offer a reasonable assurance, that the accountants or the auditors, and their personnel, respect the professional standards and any legal or regulatory requirements, and the reports issued are appropriate, with the circumstances. The quality control system contains polices and their implementation is achieved through a system of procedures. A company can have a system of quality control, but only as a form, and as result, it is very important for everyone to be able to assess, how effective such a system works. An effective quality control means more than compliance with rules and provisions, and this is the reason why, for an accounting firm, it is very important, not just to have the system, but, also, to have some methods to evaluate how effective this system is. A lot of benefits can result from a robust SQC, regarding competitiveness on the market and the financial performance, and through monitoring controls, an accounting firm apply tests to ensure that controls are designed and works properly. The paper has the purpose to identify whether the accounting practices, small and medium, know how to evaluate the effectiveness of quality control system, and in connection with is, whether they have enough information to develop a set of indicators, which could measure the effectiveness of the firm’s SQC The research is based on descriptive statistics applied on the results of a survey addressed to small and medium practices in accounting and auditing. The results can make their contribution to disseminating how to design the system of indicators used to evaluate the effectiveness of the quality control system. The findings of the paper are not very optimistic, but if, at least it draws attention to the importance of building a set of indicators to measure the effectiveness of the quality control system, the objective has been achieved.
