Which element of a firm's quality control system focuses on detecting and addressing issues during audits?

The element of a firm's quality control system that focuses on detecting and addressing issues during audits is monitoring. Monitoring involves the ongoing evaluation of the audit process and the firm's quality control policies and procedures to ensure they are effective and being followed. This can include regular reviews of completed audits, evaluations of the performance of audit team members, and making necessary adjustments to policies based on these assessments.

Effective monitoring allows firms to identify potential issues, such as non-compliance with standards or deficiencies in audit procedures, and to implement corrective actions promptly. This proactive approach helps maintain the integrity and quality of the audits conducted by the firm, ultimately contributing to the reliability of financial reporting.

In contrast, other elements, such as human resources, typically deal with recruitment and training, risk assessments focus on identifying and managing potential risks that could impact audits, and engagement planning relates to setting objectives and determining the scope of the audit. These other components, while important, do not specifically target the ongoing evaluation and rectification of issues during the auditing process itself.