Page 166 - SUSTAINABILITY ISSUES & COVID-19

KAP must design and maintain a quality control system which includes policies and procedures for each of the following
elements:
a. The responsibility of the KAP leadership towards quality
b. Relevant professional ethics provisions
c. Acceptance and continuation of specific client relationships and engagements
d. Human resources
e. Performing the engagement
f. Monitoring

Policies and procedures designed by KAP in fulfilling these elements must be clearly documented and communicated
to company personnel. This is necessary in order to achieve the objectives of these policies and procedures. In addition,
policies and procedures also contain a message that each KAP personnel has the responsibility for the quality of their
work, either to implement, communicate, or provide input on the KAP quality control system.

3. RESEARCH METHOD

This study uses a descriptive qualitative approach because this method provides a clear understanding for researchers
of the existing cases in KAP X. This qualitative research has several advantages. Qualitative research can build the
necessary research conditions with adequate variable and data coverage, an adequate sample of respondents and a
high enough response rate, and not only study past conditions but also be sustainable (Yin, 2011).

The strengths of qualitative research are a fairly high response rate and adequate coverage of variables and data
through interviews and documentary studies which are the consideration for researchers to choose the type of
qualitative research to support theoretical analysis with practice at KAP X.

The process of collecting data in this study uses data from interviews with KAP X Partners, Audit Managers, and a
Senior Associate of KAP X to find out and get the quality control system that has been implemented by KAP X. Partner
interviews are used to get an understanding of the Partner’s role in implementing the control system. quality. In
addition to interviews, documentary studies on documents used by KAP X during the audit of financial statements
include audit working papers, engagement letters, as well as attachments that are required in SPM 1.

3.1 Interview with KAP X Personnel
Researchers collected information orally through exclusive interviews with Partners, Audit Managers, and a Senior
Associate at KAP X who would be the research objects. This interview process was held on 19 and 20 June 2019 at the
KAP X office.

Before conducting the interview, the researcher has provided various questions that have been designed on the topic
of discussion as well as additional questions outside the list of questions in response to responses from respondents
during the interview process. Thus, respondents can freely express their views and thoughts based on the perspective
of each respondent.

Researchers asked several questions verbally about the Quality Control System including policies and procedures
applied to KAP X, especially for audit engagements. These questions are related to the elements of quality control
elements in ISQC 1. From the interview and discussion process, the researcher obtained an overview of how the actual
implementation of the Quality Control System at KAP X.
• In the first year, KAP X competed for clients by offering professional services at competitive rates to potential
MSMEs.
• KAP X is led by a colleague who has many business relations so from the year; towards the second year, KAP X
experienced a significant increase in the number of clients.
• Along with the increasing number of clients, KAP X recruited several new personnel informally. There are no
specific and written requirements, most importantly the candidate has a Bachelor of Accounting graduate
background.

International Conference on Sustainability 165
(5 Sustainability Practitioner Conference)
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