The QC review involves the following steps:

  1. Entity reviewers, appointed by the PAOC (Firm Level)1, carry out quality control standards reviews (“QC review”) on accounting entities (“AEs”) to assess the quality controls of AEs against the Singapore Standards on Quality Management 1 and 2 (“SSQM 1” and “SSQM 2”). 

  2. The Entity reviewers submit a report to the Registrar at the conclusion of the QC review. The Registrar submits a report to the PAOC (Firm Level) if the Registrar is of the opinion that the QC review outcome of the AE’s compliance with the quality control standards is either (i) partially satisfactory; or (ii) not satisfactory2.

  3. The PAOC (Firm Level) decides on the review outcome and, if it concludes that the AE’s compliance with the quality control standards is either (i) partially satisfactory; or (ii) not satisfactory, orders the AE to undertake remedial actions or makes other orders to protect the public interest. Find out more about QC review orders.
1 Means the PAOC without any of its members who are public accountants.
2 The categories of outcome of QC review (and their definition) are as follows:
Category of Outcome
Definition
Satisfactory
If the relevant professional standards/pronouncements have been complied with in all significant respects with no instance(s) of non-compliance
Satisfactory but with findings
If the relevant professional standards/pronouncements have been complied with in all significant respects, with limited and/or minor instance(s) of non-compliance
Partially Satisfactory
If extensive number of minor instances or more than minor instance(s) of non-compliance with relevant professional standards/pronouncements have been identified. However, the instances of non-compliance are not significant/severe
 Not Satisfactory
If extensive number and/or significant/severe and/or repeated non-compliances with relevant professional standards/pronouncements have been identified
Note: Significance/severity of non-compliance with relevant professional standards/pronouncements is assessed for each inspection finding, taking into account the nature, severity and pervasiveness of the finding.

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