Page 161 - SUSTAINABILITY ISSUES & COVID-19

26 An Analysis of Implementation of

ISQC-1 on Quality Control for Sole

Proprietorship Public Accounting Firm –

A Case Study of KAP XYZ

Cika Sonia, Sukrisno Agoes

This study aims to analyze the design of policies and procedures for KAP X Quality Control System, a small Public
Accounting Firm which is a sole proprietor, based on the criteria of International Standard on Quality Control 1 (ISQC1)
through Standar Pengendalian Mutu 1 (SPM 1) that is applied in Indonesia. In addition to SPM 1, the design of policies
and procedures in this study also uses Audit Standards 220 regarding audits of financial statements. This research uses
a qualitative method. The research data were obtained through interview, documentation and observation.

Documentation of the engagement is evidence of approval used by KAP X in the implementation of the engagement
work from the introduction, implementation, to completion. In addition to the engagement documentation checklist,
this study also presents KAP X audit procedure and also as a basis for the analysis of KAP X quality control systems
according to SPM 1. Solutions made through this design provide information and quality control procedures.

Keywords
Quality Control System, ISQC 1; Sole Proprietorship.

1. INTRODUCTION

Public Accountant is a profession that provides assurance services as its main service and the results of the work of
public accountants are widely used by stakeholders and public to support an efficient national economy by providing
transparency and reliable information in financial sector. Based on Article number 5 Year 2011 concerning Public
Accountants, a Public Accountant is someone who has obtained a license to provide services regulated in the Law.
Meanwhile, the Public Accountant Office, which is then abbreviated as KAP, is a business entity that is established based
on the provisions of laws and regulations and has obtained a business license.

Public Accountants and Public Accounting Firms in Indonesia are under the auspices of the Indonesian Institute of
Certified Public Accountants (IAPI). IAPI is a national association of public accountants. IAPI has the authority to review
the quality of its members. This is regulated in Article 44 paragraph (1) letter d of Law on Public Accountants No. 5
of 2011 concerning Public Accountants and Article 50 paragraph (1) of ART IAPI of 2013. In providing their services,
Public Accountants and Public Accountant Firms comply with the mandatory SPAP which are codifications of various
technical standard statements.

Public Accountants who provide professional services with a legal entity Public Accountant Firm, legally in the form of a
Civil Society (PP) or Maatschap as regulated in the Indonesian Civil Code. A Civil Guild is a group of people who usually
have the same profession and wish to meet together using a common name. In the United States and comomonwelath
countries it is known as the Partnership. However, public accountants can also carry out their own professional services,
without partners. This form is called individual ownership, which legally cannot take personal responsibility with
professional responsibilities.

The quality of professional public accounting services is the most important thing for public accountants and for
people who use the professional services. The quality standard for such quality must be transparent, that is, a standard
which is a standard related to service users and the standard must be adhered to by all practicing Public Accountants,
either in the Civil Society organization or practicing alone without partners.

The International Audit and Assurance Board (IAASB), as an independent standard setter established by the International
Federation of Accountants (IFAC), in 2005, has completed the International Standard on Quality Control (ISQC-1) as ISA

160 International Conference on Sustainability
(5 Sustainability Practitioner Conference)
Th