Page 162 - SUSTAINABILITY ISSUES & COVID-19

220 item on Quality Control for Audit Work “. By issuing ISQC-1, ISA 220 was revised. What is interesting here is that
(ISQC-1) in English is as follows:” requires companies to establish a quality control system in accordance with ISQC
by June 15, 2005. “ here is called “firma” means all accounting firms, whether in the form of an association or as an
individual. The interesting things are:
a. ISQC-1 is not differ between small accounting firms, therefore the default ISQC-1 is designed for large global
accounting firms.
b. The responsibility of ISQC-1 is a “firm” or public accounting firm, where allies (partners) who are assembled at
the public accounting firm are each responsible for implementing and obeying ISQC-1 in order to maintain the
quality of professional services.

The question is how this ISQC-1 can be applied and obeyed by an individual accounting firm in Indonesia. This is
the basis for the author to conduct research in the form of case studies in KAP-X, which is an individual KAP, namely
personal responsibility is inseparable from the responsibility of the profession to implement quality standards in
accordance with ISQC-1.

In Indonesia, IAPI has become a member of IFAC so that it has an obligation to adopt international standards including
ISQC-1 which in Indonesian is called SPM-1 (Quality Control Standards).

Maintaining audit quality is very important because quality audit can maintain trust, a healthy investment climate
and economic transparency in each country. Therefore, Public Accounting Firm must ensure the quality of services
performed. In providing their services, Public Accountants have a Public Accountant Professional Standard (SPAP) as
a codification of various technical standard statements. One of these standards is the Quality Control System (SPM)
which has the role of providing guidance for KAP in carrying out control of the quality of services produced so that it
conforms to the standards issued by the SPAP, applicable legal provisions, and submission of reports in accordance with
their conditions. Therefore, having a Quality Control System is certainly one of the requirements that must be met by
a public accountant in obtaining a business license for a public accounting firm as regulated in the Minister of Finance
Regulation 17 / PMK.01 / 2008 Article 18.

Several previous studies have become the basis for the implementation of this research. Tsauzan’s research, Tsana (2014)
states that the professional code of ethic has a significant effect on audit quality. An empirical study that examines the
existence of a positive influence between audit costs and audit quality includes findings from the research of Listya and
Sukrisno (2014) which examines the effect of auditor independence, audit tenure, and audit costs both partially and
simultaneously on audit quality of members. Capital market accountant forum in Indonesia, Onaolapo (2017) et al also
examined the effect of audit fees on audit quality in cement manufacturing companies in Nigeria and found that audit
quality significantly affects audit costs with a positive relationship. Audit quality research related to the audit Quality
Control System (SPM 1) has also been carried out by several previous researchers. Maya (2017) has conducted research
related to audit quality using Quality Control System 1, Audit Standards 220, Audit Standards 240. Veridiana (2017) also
conducted research on quality control for audit engagements at KAP X (Intermediate KAP) using the Structural method.
Equation Modeling. In this study, researchers examined the relationship between the implementation of policies and
procedures for each element in SPM 1 such as acceptance and continuity of relationships with clients, human resources,
engagement implementation, and monitoring of compliance with professional ethics based on processing research
data using analysis. SEM. In addition, the study provides results in the form of recommended steps to improve quality
control in audit engagements. The following are the results of hypothesis testing conducted by Veridiana (2017):
• Leadership responsibility for quality has a positive relationship with adherence to professional ethics
• Adherence to professional ethics has a positive relationship with acceptance and sustainability of relationships with
clients.
• Adherence to professional ethics does not affect compliance with policies and procedures related to human
resources.
• Adherence to professional ethics has a positive relationship with the performance of the engagement.
• Adherence to professional ethics has a positive relationship in promoting compliance with monitoring.

This research on audit quality control will be different from previous research because it is conducted on a small KAP
(Sole proprietorship). In addition, previous research did not provide specific policy and procedure recommendations
regarding the Quality Control System for audit engagements, especially for individual KAPs. This research was

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