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4. cotrolloing
1. The document discusses quality control procedures that an audit firm should implement to ensure high quality audits and audit reports. 2. It describes key aspects of quality control including delegation, direction, supervision, review, skills and competencies of staff, client acceptance policies, and monitoring procedures. 3. The purpose is to provide reasonable assurance that audits are performed according to standards and that audit opinions are properly supported.
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4. cotrolloing
- 1.
- 2. A systemby which an auditor obtains reasonable assurance that: his expression of audit opinion reflects observance of approved auditing standards any statutory or contractual requirement any professional standards set by him or his firm
- 3. A systemof : Delegating the responsibilities to the subordinates Directing how to conduct an audit Supervision the staff Review the work performed by them
- 4. Control hasto bo exercised through some laid down procedures for which no hard and fast rules. It depends upon the organisational structure of the audit firm, to which extenet the audit work has been delegated.
- 5. Every controlshould take into consideration the following elements: Audit staff should be equipped with necessary training, experiance and profeciancy Audit staff should brief with: Their responsibilities and objective Nature, Extenet and Timing of the planned procedure Accounting and Auditing problems
- 6. Working papers Procedures established should ensure that: Work performed by audit staff is reviewed by a senior Audit work was adequately performed Work performed confirms the result obtained Result derived fully support the conclusion forming basis of audit report
- 7. Delegation Directing Supervision Reviewing
- 8. The auditwork should be delegated to assisstants in a manner which provides reasonable assurance that the work shall be performed with: Independence Skills Competence required under the circumstances
- 9. Direction toassisstants would include: Their responsibilities Objectives of procedures to be performed Nature of business Accounting and Auditing problems that may occure Audit programme Time Budget and Planning Memorandum
- 10. Supervisors performthe functions of: Monitor the progress of the audit to consider whether: Assisstants have the necessary skills and competence Assisstants understand the directions Work is being carried out in accordance with the overall audit plan and the audit programme
- 11. Address significantaccounting and auditing questions raised during the audit Resolve any difference of professional judgement between personnel
- 12. It includes: Work has been performed in accordance with programme Work performed and results obtained have been properly documented All matters have been resolved Objective of audit procedures have been acheived Conclusions are consistent with the result
- 13.
- 14. Quality Controlrefers to all measures undertaking by an audit practice which are designed to assist in achieving a high quality of audit and of the audit report issued and wherever considered necessary to improve quality.
- 15. 1. It promotesobservance of the professional standards relevant to the work of an Auditor. 2. How overall quality of the work carried out within the firm can best be monitored and maintained. 3. Provides reasonable assurance that all audits carried out by the firm are performed in accordance with approved auditing standards. 4. Reduce the audit risk by ensuring that an opinion on the financial statements is properly arrived at and worked. 5. Firm must have sufficient direction, supervision and review of work at all levels
- 16. Factors affectsthe nature and extent of the policies Size of firm Nature of firm’s practice Number of firm’s offices Organization of Firm
- 17. 1. Professional Requirements 2.Skills and Competencies 3. Assignment 4. Delegation 5. Consultation 6. Acceptance and Retention of Clients 7. Monitoring
- 18. Personnel inthe firm should adhere to the principles of independence, objectivity, confidentiality and professional behaviour
- 19. The firmshould be staffed by personnel who have attained and maintained the technical standards and professional competence required to enable to fulfill their responsibilities with due care.
- 20. Audit workis to be assigned to personnel who have the degree of technical training and proficiency required in the circumstances.
- 21. There shouldbe sufficient direction, supervision and review at all levels to provide reasonable assurance that the work performed meets appropriate standards of quality.
- 22. Whenever necessary,consultation within or outside the firm is to occur with those who have appropriate expertise.
- 23. An evaluationof prospective clients and a review, on an on-going basis, of existing clients is to be conducted. In making a decision accept or retain a client, the firm’s independence and ability to serve the client properly and the integrity of the client’s management are to be considered.
- 24. The continuedadequacy and operational effectiveness of quality control policies and procedures should be monitored.