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Audit Practice management p7

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Audit Practice management p7

  1. 1. PracticeManagement
  2. 2. Quality Control
  3. 3. Quality Control Due skill and Care
  4. 4. Quality Control Due skill and Care Technical Competence
  5. 5. Quality Control
  6. 6. Quality Control Incorrect Audit Opinion Risk
  7. 7. Quality Control
  8. 8. Quality Control Sued for Negligence Risk
  9. 9. Quality Control
  10. 10. Quality Control
  11. 11. Quality Control
  12. 12. Quality ControlIndividual Audit
  13. 13. Quality ControlIndividual Audit
  14. 14. Quality ControlIndividual Audit Audit Firm
  15. 15. Quality Control Individual Audit Audit FirmISA 220
  16. 16. Isa 220the engagementkey quality control matters on partner
  17. 17. Isa 220the engagementkey quality control matters on partner • ethical standards are complied with
  18. 18. Isa 220the engagementkey quality control matters on partner • ethical standards are complied with • independence requirements are met
  19. 19. Isa 220the engagementkey quality control matters on partner • ethical standards are complied with • independence requirements are met • procedures for new engagements
  20. 20. Isa 220the engagementkey quality control matters on partner • ethical standards are complied with • independence requirements are met • procedures for new engagements • appropriate audit team
  21. 21. Isa 220the engagementkey quality control matters on partner • ethical standards are complied with • independence requirements are met • procedures for new engagements • appropriate audit team • appropriate management of team
  22. 22. Isa 220the engagementkey quality control matters on partner • ethical standards are complied with • independence requirements are met • procedures for new engagements • appropriate audit team • appropriate management of team • adequate consultation on difficult matters
  23. 23. Isalisted company If audit of 220engagement quality control reviewer
  24. 24. Isalisted company If audit of 220engagement quality control reviewer• objective evaluation of the significant judgements
  25. 25. Isalisted company If audit of 220engagement quality control reviewer• objective evaluation of the significant judgements• evaluation of the firm’s independence
  26. 26. Isalisted company If audit of 220engagement quality control reviewer• objective evaluation of the significant judgements• evaluation of the firm’s independence• audit documentation selected for review reflects the work performed
  27. 27. Isalisted company If audit of 220engagement quality control reviewer• objective evaluation of the significant judgements• evaluation of the firm’s independence• audit documentation selected for review reflects the work performed• Has adequate consultation on difficult matters occurred?
  28. 28. Quality Control
  29. 29. Quality Control
  30. 30. Quality ControlIndividual Audit
  31. 31. Quality ControlIndividual Audit
  32. 32. Quality ControlIndividual Audit Audit Firm
  33. 33. Quality Control Individual Audit Audit FirmISA 220
  34. 34. Quality Control Individual Audit Audit FirmISA 220 ISQC 1
  35. 35. Quality Control Individual Audit Audit FirmISA 220 ISQC 1 Quality control for firms that perform audits and reviews of financial statements, and other assurance and related services engagements
  36. 36. ISQC 1 each of thea system in place which addresses following :
  37. 37. ISQC 1 each of thea system in place which addresses following : • Leadership responsibilities for quality
  38. 38. ISQC 1 each of thea system in place which addresses following : • Leadership responsibilities for quality • Ethical requirements
  39. 39. ISQC 1 each of thea system in place which addresses following : • Leadership responsibilities for quality • Ethical requirements • Acceptance and continuance of engagements
  40. 40. ISQC 1 each of thea system in place which addresses following : • Leadership responsibilities for quality • Ethical requirements • Acceptance and continuance of engagements • Human resources
  41. 41. ISQC 1 each of thea system in place which addresses following : • Leadership responsibilities for quality • Ethical requirements • Acceptance and continuance of engagements • Human resources • Engagement performance
  42. 42. ISQC 1 each of thea system in place which addresses following : • Leadership responsibilities for quality • Ethical requirements • Acceptance and continuance of engagements • Human resources • Engagement performance • Monitoring
  43. 43. ISQC 1 each of thea system in place which addresses following : • Leadership responsibilities for quality • Ethical requirements • Acceptance and continuance of engagements • Human resources • Engagement performance • Monitoring • Documentation
  44. 44. ISQC 1 each of thea system in place which addresses following : • Leadership responsibilities for quality • Ethical requirements • Acceptance and continuance of engagements • Human resources • Engagement performance • Monitoring • Documentation
  45. 45. LeadershipResponsibilities
  46. 46. Leadership Responsibilities• Culture of Quality
  47. 47. Leadership Responsibilities• Culture of Quality• Appropriate experience and authority
  48. 48. EthicalRequirements
  49. 49. Ethical Requirements• comply with relevant ethical requirements
  50. 50. Ethical Requirements• comply with relevant ethical requirements• maintain independence & communicate to staff (identify threats and safeguards)
  51. 51. Ethical Requirements• comply with relevant ethical requirements• maintain independence & communicate to staff (identify threats and safeguards)• annual written confirmation from staff of compliance policies on independence.
  52. 52. Acceptance andcontinuance of engagements
  53. 53. Acceptance and continuance of engagements• Competent to perform
  54. 54. Acceptance and continuance of engagements• Competent to perform• Capable to do so
  55. 55. Acceptance and continuance of engagements• Competent to perform• Capable to do so• Considered integrity of client
  56. 56. Acceptance and continuance of engagements• Competent to perform• Capable to do so• Considered integrity of client• Consider conflicts of interest
  57. 57. Acceptance and continuance of engagements• Competent to perform• Capable to do so• Considered integrity of client• Consider conflicts of interest• Professional clearance from old auditors
  58. 58. Acceptance and continuance of engagements• Competent to perform• Capable to do so• Considered integrity of client• Consider conflicts of interest• Professional clearance from old auditors• Anti money laundering procedures
  59. 59. HumanResources
  60. 60. Human Resources• Sufficient personnel with the competence, capabilities and commitment to ethical principles
  61. 61. Human Resources• Sufficient personnel with the competence, capabilities and commitment to ethical principles• An appropriate engagement partner and team are assigned
  62. 62. Human Resources• Sufficient personnel with the competence, capabilities and commitment to ethical principles• An appropriate engagement partner and team are assigned• Auditing procedures in a manual (reinforced by training)
  63. 63. Engagememt Performance
  64. 64. Engagememt Performance• Promote consistent quality engagement performance
  65. 65. Engagememt Performance• Promote consistent quality engagement performance• Supervision responsibilities
  66. 66. Engagememt Performance• Promote consistent quality engagement performance• Supervision responsibilities• Review responsibilities (on the basis that more experienced team members review the work of less experienced team members)
  67. 67. Engagememt Performance• Promote consistent quality engagement performance• Supervision responsibilities• Review responsibilities (on the basis that more experienced team members review the work of less experienced team members)
  68. 68. Monitoring ofquality control procedures
  69. 69. Monitoring of quality control procedures• Evaluate if any deficiencies found indicate a failing in the firm’s quality control system
  70. 70. Monitoring of quality control procedures• Evaluate if any deficiencies found indicate a failing in the firm’s quality control system• Communicate deficiencies to relevant personnel, together with appropriate remedial action
  71. 71. Direction of Audit Staff
  72. 72. Direction of Audit Staff• Their responsibilities• Nature of the business of the client company• Risk-related issues• Problems that may arise with the audit and how these problems should be dealt with if they do occur
  73. 73. Review of Audit Work
  74. 74. Review of Audit Work
  75. 75. Review of Audit WorkAudit
  76. 76. Review of Audit Work AuditHot Review
  77. 77. Review of Audit Work AuditHot Review
  78. 78. Review of Audit Work Audit Audit ReportHot Review
  79. 79. Review of Audit Work Audit Audit ReportHot Review Post Audit Review
  80. 80. Review of Audit Work Audit Audit ReportHot Review Post Audit Review Audit Manager Audit Partner
  81. 81. Review of Audit Work Audit Audit ReportHot Review Post Audit Review Audit Manager Audit Partner
  82. 82. Review of Audit Work Audit Audit ReportHot Review Post Audit Review Audit Manager Audit Partner Modified Opinion?
  83. 83. Review of Audit Work Audit Audit ReportHot Review Post Audit Review Audit Manager Audit Partner Modified Opinion? Second Partner Review
  84. 84. Review of Audit Work Audit Audit Report Hot Review Post Audit ReviewPeer review Audit Manager Audit Partner Modified Opinion? Second Partner Review
  85. 85. Review of Audit Work Audit Audit Report Hot Review Post Audit ReviewPeer review Audit Manager   Audit Partner Modified Opinion? Second Partner Review
  86. 86. Review of Audit Work Audit Audit Report Hot Review Post Audit Review Peer review Audit Manager   Audit PartnerReview by a specialist ‘Audit review Modified Opinion? department’ Second Partner Review

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