What is QAR in the Philippines?
Quality Assurance Review, or QAR, examines audit quality. PICPA’s QAR Office implements the program under Board of Accountancy Resolution No. 57, Series of 2023. Its scope covers the firm’s system of quality management and completed audit engagements.
An inspection is more than a search for files. It considers how the firm manages quality and whether the engagement record supports the work performed. Source. QAR Office program overview.
Why QAR inspection matters
People rely on audited financial statements to make decisions. A clear audit trail helps explain how the team reached its conclusions. Organized evidence makes that trail easier to follow.
For the firm, preparation also reduces last-minute searching. Staff can find the right file, understand the review history and answer questions with less disruption. These are practical benefits of a disciplined workflow, rather than a promise of an inspection outcome.
A useful question is simple. could another qualified reviewer follow the work without relying on the preparer’s memory? If the answer is uncertain, start there.
What should your firm have ready?
QARO identifies the SOQM Manual and selected engagement documentation as records firms must make available. It also expects firms to cooperate, respond to findings and address their causes. Read the official responsibilities.
The following is a practical preparation checklist. It is not an official inspection checklist.
Quality management. Locate your current manual and the records showing how your firm applies it. Assign someone who can explain the process.
Engagement records. Check that planning, evidence, conclusions and review records can be followed. Use consistent references and clear file names.
Open questions. Identify unresolved review points. Address them through the firm’s established process.
Access. Test how authorized reviewers will find the relevant documents. Check permissions before sharing confidential information.
The 2026 inspection update to know
A QAR Office notice published on 9 July 2026 announced a one-client policy effective 1 August 2026. It states that one audit file will be inspected per practitioner or firm, with discretion to select their best completed file.
Confirm the instructions in your own inspection notice and check for later updates. Read the dated QAR Office announcement.
Prepare during the engagement, not just before inspection
Give each task an owner. Keep supporting files beside the relevant work. Record the reviewer’s questions and the team’s responses in the same place.
Before archiving, follow your completion process. Check that the record is understandable and that review points have been handled appropriately. Preserve the history of changes under your firm’s policies.
Try a short internal walkthrough. Ask a colleague who was not on the engagement to locate a conclusion and its supporting evidence. Note where they get stuck. Improve those links before an external request arrives.
How OLi Audit supports preparation
OLi Audit brings engagement tasks, working papers, review notes and client requests into a connected workspace. Archived audit engagements can be shared through password-protected, limited viewing access.
This helps organize the records and viewing experience. It does not replace professional judgment, required procedures or the firm’s responsibility for audit quality.
In a demo, ask to follow one completed engagement from its tasks to supporting files and review history. Then test the Inspection View. Check whether the access arrangement fits your firm’s needs. Explore OLi Audit.
Start with one completed file
Choose a completed engagement and walk through it as a reviewer would. Can you find the evidence? Can you understand the conclusions? Can you follow the sign-offs?
Assign an owner to each gap and record the next action. Small improvements made consistently are easier to maintain than a last-minute cleanup.
Sources checked. 5 October 2026. For current requirements, fees and inspection instructions, use the official QAR Office website.
Quick answers
What does a Philippine QAR inspection cover?+
The QAR Office describes its scope as the firm’s system of quality management and completed audit engagements.
Is this preparation checklist issued by QARO?+
No. It is practical workflow guidance from OLi. Follow the official QAR instructions and your firm’s professional requirements.
Does using audit software guarantee a successful QAR inspection?+
No. Software can help organize records. Audit quality depends on the firm’s procedures, evidence, professional judgment and compliance with applicable standards.
Original practical guidance prepared for OLi with AI assistance. It focuses on workflow and product evaluation. It does not replace your organization’s policies or professional advice.
