Rule for Performing Quality Control System Monitoring

Following the order issued by the head of the Service for Accounting, Reporting and Auditing Supervision Subdivision of the Ministry of Finance of Georgia, ‘The Rule for Performing Quality Control System Monitoring` has been approved.

The order was issued in accordance with a respective clause in Georgian `Law on Accounting, Reporting and Auditing`, which establishes legal basis for exercising state supervision of audit practice and its quality assurance and imposing responsibilities.

In order to ensure the quality of audit practice the Rule sets out procedures for: monitoring auditor / audit firm and engagement leader quality control by the Service; risk management by the Service; compilation and submission of the audit quality system diagnostic report issued by professional organization; performance of procedures in a reasonable and objective manner by monitoring team; discussion of preliminary and final results of the monitoring; provision of recommendations; elimination of identified deficiencies and dispute of monitoring results.

Best practices and experiences of the EU member and other states were taken into consideration while elaborating the Order.