Presentation by Dawn McGeachy, BAccS, FCUIC, ACUIC, FCGA, LPA
Member, IFAC SMP Committee at the International Federation of Accountants & Institute of Chartered Accountants of Jamaica Business Development Conference, March 18, 2014
An orientation slide deck on the IFAC SMP Committee's Guide to Quality Control for SMPs (QC Guide) that member bodies may use in training and orientation seminars to introduce staff and members to the QC Guide.
The document provides an overview of the strategic framework and goals of an internal audit department. It outlines the department's mission to be a trusted advisor and problem solver while optimizing costs. The framework details short, medium, and long term goals including implementing efficient processes, advanced technologies, and becoming a market leader. It also provides examples of internal audit reporting, analysis of results, and auditor evaluations to measure performance.
This document discusses audit quality control and measures taken to maintain audit quality. It analyzes the Audit Quality Review (AQR) approach and main concerns identified from 2012-2014, which include auditor independence, audit quality, financial services audits, and fair value measurements. It also discusses quality control at the firm level through leadership, ethics, human resources and acceptance of engagements. At the individual audit level, quality is maintained through directing, supervising, reviewing and monitoring engagements. Finally, it outlines changes from the 2014 European Directive, such as expanded audit reports, audit rotation requirements, restrictions on non-audit services, and increased oversight of public interest entity audits.
The document discusses the IFAC Guide to Compilation Engagements. It provides an overview of the IFAC SMP Committee, which developed the guide. The guide assists small- and medium-sized accounting practices in performing compilation engagements. It discusses the uses and benefits of compilation engagements for both SME clients and SMPs. It also summarizes the key elements of accepting, planning, performing and reporting on a compilation engagement as outlined in the guide from the practitioner's point of view.
The document is an introduction to a guide on review engagements produced by the International Federation of Accountants (IFAC). It summarizes International Standard on Review Engagements 2400 (Revised) and outlines the four key elements of a review engagement: accepting the engagement, planning, performing procedures, and reporting. It describes the objectives and benefits of a review for small- and medium-sized entities. The guide contains checklists, forms, and resources to help practitioners properly conduct a review engagement.
This document outlines various factors that contribute to 20% each, including attitude, knowledge, skills, care, rewards, inventory, costing and pricing, sales and marketing, branding, profit and loss, simplicity, effectiveness, maintenance and security, cost scaling, review, approval and validation, satisfaction, return, sharing, process or operation strategy, system strategy, customer feedback, competitors, key performance indicators, questionnaires and surveys, products or services, product segments, target customers, and people strategy. These factors are grouped into operational, strategic, system, customer, and people categories.
The webinar covered extended external reporting (EER) assurance and the IAASB's draft guidance on EER assurance engagements. It discussed what EER is, how assurance serves the public interest, and challenges in EER assurance due to characteristics of EER reporting. The purpose and structure of the guidance was explained, focusing on how it addresses key stages of an EER assurance engagement and common types of EER information. Next steps outlined a public comment period on the draft guidance, with the final version expected in late 2020.
Internal Audit Best Practices for Safety, Environment, and Quality AuditsNimonik
Nimonik has seen a wide variety of internal Health, Safety, Environmental and Quality (HSEQ) audit programs. They seem to come in all shapes and sizes! Each company tends to focus on different risks and controls.
Whether your organization conforms to ISO 19011 or another internal audit standard, re-focusing your internal audit program on your risks, controls, and operational reality is a key driver for operational excellence.
On March 14th, John Wolfe shared insights from over 20 years as a hands-on HSE Director and as the Sr. Director of Operations Integrity Audit for a global Oil & Gas company. John outlined the attributes of an outstanding Internal audit program. He showed you how you can build out a program tailored to your operations and add tremendous value to your business.
An orientation slide deck on the IFAC SMP Committee's Guide to Quality Control for SMPs (QC Guide) that member bodies may use in training and orientation seminars to introduce staff and members to the QC Guide.
The document provides an overview of the strategic framework and goals of an internal audit department. It outlines the department's mission to be a trusted advisor and problem solver while optimizing costs. The framework details short, medium, and long term goals including implementing efficient processes, advanced technologies, and becoming a market leader. It also provides examples of internal audit reporting, analysis of results, and auditor evaluations to measure performance.
This document discusses audit quality control and measures taken to maintain audit quality. It analyzes the Audit Quality Review (AQR) approach and main concerns identified from 2012-2014, which include auditor independence, audit quality, financial services audits, and fair value measurements. It also discusses quality control at the firm level through leadership, ethics, human resources and acceptance of engagements. At the individual audit level, quality is maintained through directing, supervising, reviewing and monitoring engagements. Finally, it outlines changes from the 2014 European Directive, such as expanded audit reports, audit rotation requirements, restrictions on non-audit services, and increased oversight of public interest entity audits.
The document discusses the IFAC Guide to Compilation Engagements. It provides an overview of the IFAC SMP Committee, which developed the guide. The guide assists small- and medium-sized accounting practices in performing compilation engagements. It discusses the uses and benefits of compilation engagements for both SME clients and SMPs. It also summarizes the key elements of accepting, planning, performing and reporting on a compilation engagement as outlined in the guide from the practitioner's point of view.
The document is an introduction to a guide on review engagements produced by the International Federation of Accountants (IFAC). It summarizes International Standard on Review Engagements 2400 (Revised) and outlines the four key elements of a review engagement: accepting the engagement, planning, performing procedures, and reporting. It describes the objectives and benefits of a review for small- and medium-sized entities. The guide contains checklists, forms, and resources to help practitioners properly conduct a review engagement.
This document outlines various factors that contribute to 20% each, including attitude, knowledge, skills, care, rewards, inventory, costing and pricing, sales and marketing, branding, profit and loss, simplicity, effectiveness, maintenance and security, cost scaling, review, approval and validation, satisfaction, return, sharing, process or operation strategy, system strategy, customer feedback, competitors, key performance indicators, questionnaires and surveys, products or services, product segments, target customers, and people strategy. These factors are grouped into operational, strategic, system, customer, and people categories.
The webinar covered extended external reporting (EER) assurance and the IAASB's draft guidance on EER assurance engagements. It discussed what EER is, how assurance serves the public interest, and challenges in EER assurance due to characteristics of EER reporting. The purpose and structure of the guidance was explained, focusing on how it addresses key stages of an EER assurance engagement and common types of EER information. Next steps outlined a public comment period on the draft guidance, with the final version expected in late 2020.
Internal Audit Best Practices for Safety, Environment, and Quality AuditsNimonik
Nimonik has seen a wide variety of internal Health, Safety, Environmental and Quality (HSEQ) audit programs. They seem to come in all shapes and sizes! Each company tends to focus on different risks and controls.
Whether your organization conforms to ISO 19011 or another internal audit standard, re-focusing your internal audit program on your risks, controls, and operational reality is a key driver for operational excellence.
On March 14th, John Wolfe shared insights from over 20 years as a hands-on HSE Director and as the Sr. Director of Operations Integrity Audit for a global Oil & Gas company. John outlined the attributes of an outstanding Internal audit program. He showed you how you can build out a program tailored to your operations and add tremendous value to your business.
A 2nd 90 minute webinar was hosted by the IAASB to discuss the key revisions to the auditor’s risk identification and assessment procedures, as introduced through the recently published ISA 315 (Revised) Exposure Draft. Listen to IAASB Task Force Chair Fiona Campbell as she goes through specific questions sent from stakeholders about the changes we are proposing.
Measuring Institional Effectiveness by Performance AuditShantanu Basu
This document provides information on performance audits. It defines performance audits and how they differ from regularity audits. Performance audits assess economy, efficiency and effectiveness of government programs and activities over a period of time. They have a broader scope than regularity audits and focus on qualitative aspects rather than just financial compliance. The document outlines objectives, evidence, criteria and reporting for performance audits. It also discusses new dimensions that performance audits need to address like privatization, accountability laws and rising standards. Key terms covered include activities, assessment, economy, effectiveness, efficiency, management, organization, reasonableness and resources.
1) Internal audits are required by cGMP and QMS standards to evaluate compliance and identify improvement opportunities. They help assure compliance, detect potential problems, and increase management awareness.
2) There are different types of audits - internal, external by suppliers, and regulatory. Audits check areas like personnel, facilities, equipment, production, documentation, and quality systems.
3) Principles of effective auditing include ethical conduct, fair presentation, independence, evidence-based approach. Audit planning includes preparing the audit plan, selecting the team, and arranging logistics. Frequency depends on the compliance risk of the area.
An orientation slide deck on the IFAC SMP Committee's Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (ISA Guide) that IFAC member bodies may use in training and orientation seminars to introduce staff and members to the ISA Guide.
The document outlines best practices for internal audit departments across five key areas: roles and structure, people, process, technology, and knowledge. It provides examples of best practice features for each area and a template for departments to evaluate the evidence of these features in their own practices. The template can be used to assess areas as low, medium, or high and identify opportunities for improvement. The document aims to help internal audit departments evaluate their practices against industry standards and enhance their ability to add value through continuous improvement.
This document provides an overview and summary of ISQC 1 for small and medium accounting practices. It discusses the objective of ISQC 1, which is for firms and personnel to comply with professional standards and regulations and issue appropriate reports. It outlines the key elements that must be included in a system of quality control, including leadership responsibilities, ethical requirements, client acceptance, human resources, engagement performance, and monitoring. It emphasizes that the nature and extent of policies and procedures will depend on the size and characteristics of the firm. It also notes that the firm must document its quality control system and policies and communicate them to personnel.
This document provides an overview of the revised and restructured International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA) in April 2018. It summarizes key changes such as a new design to be easier to navigate, increased focus on compliance with fundamental principles and independence, and an enhanced conceptual framework. It also outlines other substantive revisions including provisions addressing pressure, inducements, long association, and applicability of professional accountant in business requirements to those in public practice. The effective date and additional resources are noted.
This document outlines key aspects for an effective performance management audit. It discusses the importance of internal audit aligning with and focusing on an organization's strategic objectives and risks. It also emphasizes the need for internal audit to continuously improve itself and promote improvement across the organization. Additionally, it notes the importance of internal audit managing relationships effectively and considering value for money in its work to help an organization achieve its strategic goals.
ISA 540 (Revised) enhances audit requirements for accounting estimates with high estimation uncertainty. Key changes include emphasizing inherent risk factors like estimation uncertainty, complexity, and subjectivity in risk assessments. It introduces objectives-based work requirements focused on methods, assumptions, and data, and enhances requirements on controls testing and disclosures. The standard is intended to be scalable and promote professional skepticism. An implementation working group is providing support and guidance to facilitate adoption.
This document provides a summary of a presentation on performance auditing. The presentation objectives are to understand the landscape of internal auditing, increase ability to work with management, analyze risks, and learn value-for-money approaches. The presentation covers the definition of internal auditing, performance audits, management functions, performance measures, and the International Standards for internal auditing. The benefits of performance audits are that they are relevant, flexible, improve organizational performance, and strengthen governance.
The document discusses the application of professional practices frameworks in internal audit practice. It addresses different scenarios that internal audit functions may encounter in corporate environments.
It discusses challenges that may be faced by internal audit functions that are led by senior professionals, junior auditors, or in group company structures. It also addresses internal audit in small and medium enterprises that currently lack such functions.
The document identifies top 10 standards from professional practices frameworks that require attention, such as independence and objectivity, continuing professional education, quality assurance, risk management, and ethical culture. It analyzes issues around implementing these standards in various contexts.
View the slides for the introduction to the International Auditing and Assurance Standards Board's recently proposed quality management standards. In this webcast, IAASB members and Task force chairs, Imran Vanker and Lyn Provost discuss the proposed ISQM 2, Engagement Quality Reviews, and ISA 220 (Revised), Quality Management for an Audit of Financial Statements. Video available at www.iaasb.org/quality-management
The quality management standards are currently open for public consultation until July 1, 2019.
Slide gives information about working style of internal audit department in micro-finance institution. It helps the viewer to enhance the skills and knowledge about audit activities in MFI.
This document provides an overview of internal audit strategy and risk approach for not-for-profit organizations. It discusses the context and challenges not-for-profits face, conceptual frameworks for internal control and governance, a practical internal audit model, resourcing strategies, the internal audit process, and integrating risk management. It proposes a risk-based internal audit approach and roadmap for developing an enterprise risk management framework that embeds risk management into operations. The document is intended to help not-for-profits design and implement an effective internal audit and risk management function.
The document discusses changes to the monitoring and remediation processes under ISQM 1. It provides an overview of the new framework, including focusing on monitoring the system of quality management as a whole, and having a more robust process for evaluating findings, identifying deficiencies, and implementing remedial actions. The monitoring and remediation process is presented as an integrated and interactive cycle involving designing and performing monitoring activities, evaluating findings, responding to deficiencies, and communicating.
Andreas Noodt, Member, IFAC Small and Medium Practices Committee speaks at FEE & ICAEW Event on February 19, 2014 about the SMP Commitee's Guide to Review Engagements. The Guide, published in December 2013, aims to provide implementation support for practitioners in conducting review engagements in compliance with International Standard on Review Engagements (ISRE) 2400 (Revised).
The Quality Management webinar series, hosted by the IAASB in collaboration with IFAC, takes a deep dive into aspects of the IAASB’s International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.
The webinar series focused on:
Webinar One: All You Need to Know about the Firm’s Risk Assessment Process
Webinar Two: Resources: Expectations for Firms and Engagement Partners
Webinar Three: What’s New for Firms’ Monitoring and Remediation Processes (coming August 5, 2021 – register now)
Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System (coming August 18, 2021 – register now)
ISQM 1 is part of the IAASB’s suite of quality management standards. Firms are required to have systems of quality management designed and implemented in accordance with ISQM 1 by December 15, 2022. Learn more about the quality management standards at: iaasb.org/quality-management
1. Performance auditing is a new paradigm that focuses on assessing the value obtained from public resources rather than just examining spending.
2. Managing for results through systematic planning, monitoring, and evaluation is key to performance auditing and obtaining value for resources.
3. Performance auditing examines economy, efficiency, effectiveness and environmental impacts of government activities to promote accountability.
The document discusses internal audit, providing definitions, objectives, principles and need. It defines internal audit as an independent function that appraises an entity's operations to strengthen governance and risk management. The scope of internal audit includes reviewing accounting and controls, ensuring efficiency and compliance. It is needed due to increased business size, regulations, and technology usage. Internal audit adds value through risk management, assurance, compliance and fraud prevention. Key principles are integrity, objectivity, independence and professional care. The Companies Act 2013 requires certain public and private companies to appoint internal auditors.
This document discusses quality control and auditing. It defines quality control as a management system that coordinates quality development, maintenance, and improvements to achieve economical production and customer satisfaction. Some key quality control techniques mentioned include JIT, inspection, SQC, and TQM. The document also defines quality auditing as an independent examination to determine if quality activities comply with plans and if those plans are effectively implemented and suitable to achieve objectives. The objectives of an audit are to verify that the quality management system conforms to requirements and is effectively implemented. Types of audits discussed include internal, external, and regulatory audits.
A 2nd 90 minute webinar was hosted by the IAASB to discuss the key revisions to the auditor’s risk identification and assessment procedures, as introduced through the recently published ISA 315 (Revised) Exposure Draft. Listen to IAASB Task Force Chair Fiona Campbell as she goes through specific questions sent from stakeholders about the changes we are proposing.
Measuring Institional Effectiveness by Performance AuditShantanu Basu
This document provides information on performance audits. It defines performance audits and how they differ from regularity audits. Performance audits assess economy, efficiency and effectiveness of government programs and activities over a period of time. They have a broader scope than regularity audits and focus on qualitative aspects rather than just financial compliance. The document outlines objectives, evidence, criteria and reporting for performance audits. It also discusses new dimensions that performance audits need to address like privatization, accountability laws and rising standards. Key terms covered include activities, assessment, economy, effectiveness, efficiency, management, organization, reasonableness and resources.
1) Internal audits are required by cGMP and QMS standards to evaluate compliance and identify improvement opportunities. They help assure compliance, detect potential problems, and increase management awareness.
2) There are different types of audits - internal, external by suppliers, and regulatory. Audits check areas like personnel, facilities, equipment, production, documentation, and quality systems.
3) Principles of effective auditing include ethical conduct, fair presentation, independence, evidence-based approach. Audit planning includes preparing the audit plan, selecting the team, and arranging logistics. Frequency depends on the compliance risk of the area.
An orientation slide deck on the IFAC SMP Committee's Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (ISA Guide) that IFAC member bodies may use in training and orientation seminars to introduce staff and members to the ISA Guide.
The document outlines best practices for internal audit departments across five key areas: roles and structure, people, process, technology, and knowledge. It provides examples of best practice features for each area and a template for departments to evaluate the evidence of these features in their own practices. The template can be used to assess areas as low, medium, or high and identify opportunities for improvement. The document aims to help internal audit departments evaluate their practices against industry standards and enhance their ability to add value through continuous improvement.
This document provides an overview and summary of ISQC 1 for small and medium accounting practices. It discusses the objective of ISQC 1, which is for firms and personnel to comply with professional standards and regulations and issue appropriate reports. It outlines the key elements that must be included in a system of quality control, including leadership responsibilities, ethical requirements, client acceptance, human resources, engagement performance, and monitoring. It emphasizes that the nature and extent of policies and procedures will depend on the size and characteristics of the firm. It also notes that the firm must document its quality control system and policies and communicate them to personnel.
This document provides an overview of the revised and restructured International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA) in April 2018. It summarizes key changes such as a new design to be easier to navigate, increased focus on compliance with fundamental principles and independence, and an enhanced conceptual framework. It also outlines other substantive revisions including provisions addressing pressure, inducements, long association, and applicability of professional accountant in business requirements to those in public practice. The effective date and additional resources are noted.
This document outlines key aspects for an effective performance management audit. It discusses the importance of internal audit aligning with and focusing on an organization's strategic objectives and risks. It also emphasizes the need for internal audit to continuously improve itself and promote improvement across the organization. Additionally, it notes the importance of internal audit managing relationships effectively and considering value for money in its work to help an organization achieve its strategic goals.
ISA 540 (Revised) enhances audit requirements for accounting estimates with high estimation uncertainty. Key changes include emphasizing inherent risk factors like estimation uncertainty, complexity, and subjectivity in risk assessments. It introduces objectives-based work requirements focused on methods, assumptions, and data, and enhances requirements on controls testing and disclosures. The standard is intended to be scalable and promote professional skepticism. An implementation working group is providing support and guidance to facilitate adoption.
This document provides a summary of a presentation on performance auditing. The presentation objectives are to understand the landscape of internal auditing, increase ability to work with management, analyze risks, and learn value-for-money approaches. The presentation covers the definition of internal auditing, performance audits, management functions, performance measures, and the International Standards for internal auditing. The benefits of performance audits are that they are relevant, flexible, improve organizational performance, and strengthen governance.
The document discusses the application of professional practices frameworks in internal audit practice. It addresses different scenarios that internal audit functions may encounter in corporate environments.
It discusses challenges that may be faced by internal audit functions that are led by senior professionals, junior auditors, or in group company structures. It also addresses internal audit in small and medium enterprises that currently lack such functions.
The document identifies top 10 standards from professional practices frameworks that require attention, such as independence and objectivity, continuing professional education, quality assurance, risk management, and ethical culture. It analyzes issues around implementing these standards in various contexts.
View the slides for the introduction to the International Auditing and Assurance Standards Board's recently proposed quality management standards. In this webcast, IAASB members and Task force chairs, Imran Vanker and Lyn Provost discuss the proposed ISQM 2, Engagement Quality Reviews, and ISA 220 (Revised), Quality Management for an Audit of Financial Statements. Video available at www.iaasb.org/quality-management
The quality management standards are currently open for public consultation until July 1, 2019.
Slide gives information about working style of internal audit department in micro-finance institution. It helps the viewer to enhance the skills and knowledge about audit activities in MFI.
This document provides an overview of internal audit strategy and risk approach for not-for-profit organizations. It discusses the context and challenges not-for-profits face, conceptual frameworks for internal control and governance, a practical internal audit model, resourcing strategies, the internal audit process, and integrating risk management. It proposes a risk-based internal audit approach and roadmap for developing an enterprise risk management framework that embeds risk management into operations. The document is intended to help not-for-profits design and implement an effective internal audit and risk management function.
The document discusses changes to the monitoring and remediation processes under ISQM 1. It provides an overview of the new framework, including focusing on monitoring the system of quality management as a whole, and having a more robust process for evaluating findings, identifying deficiencies, and implementing remedial actions. The monitoring and remediation process is presented as an integrated and interactive cycle involving designing and performing monitoring activities, evaluating findings, responding to deficiencies, and communicating.
Andreas Noodt, Member, IFAC Small and Medium Practices Committee speaks at FEE & ICAEW Event on February 19, 2014 about the SMP Commitee's Guide to Review Engagements. The Guide, published in December 2013, aims to provide implementation support for practitioners in conducting review engagements in compliance with International Standard on Review Engagements (ISRE) 2400 (Revised).
The Quality Management webinar series, hosted by the IAASB in collaboration with IFAC, takes a deep dive into aspects of the IAASB’s International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.
The webinar series focused on:
Webinar One: All You Need to Know about the Firm’s Risk Assessment Process
Webinar Two: Resources: Expectations for Firms and Engagement Partners
Webinar Three: What’s New for Firms’ Monitoring and Remediation Processes (coming August 5, 2021 – register now)
Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System (coming August 18, 2021 – register now)
ISQM 1 is part of the IAASB’s suite of quality management standards. Firms are required to have systems of quality management designed and implemented in accordance with ISQM 1 by December 15, 2022. Learn more about the quality management standards at: iaasb.org/quality-management
1. Performance auditing is a new paradigm that focuses on assessing the value obtained from public resources rather than just examining spending.
2. Managing for results through systematic planning, monitoring, and evaluation is key to performance auditing and obtaining value for resources.
3. Performance auditing examines economy, efficiency, effectiveness and environmental impacts of government activities to promote accountability.
The document discusses internal audit, providing definitions, objectives, principles and need. It defines internal audit as an independent function that appraises an entity's operations to strengthen governance and risk management. The scope of internal audit includes reviewing accounting and controls, ensuring efficiency and compliance. It is needed due to increased business size, regulations, and technology usage. Internal audit adds value through risk management, assurance, compliance and fraud prevention. Key principles are integrity, objectivity, independence and professional care. The Companies Act 2013 requires certain public and private companies to appoint internal auditors.
This document discusses quality control and auditing. It defines quality control as a management system that coordinates quality development, maintenance, and improvements to achieve economical production and customer satisfaction. Some key quality control techniques mentioned include JIT, inspection, SQC, and TQM. The document also defines quality auditing as an independent examination to determine if quality activities comply with plans and if those plans are effectively implemented and suitable to achieve objectives. The objectives of an audit are to verify that the quality management system conforms to requirements and is effectively implemented. Types of audits discussed include internal, external, and regulatory audits.
Nia 220 Quality Control For An Audit Of Financial En Inglesguest4a971d
This document is an international standard on auditing that deals with quality control procedures for an audit of financial statements. It discusses responsibilities for quality control at both the firm level and engagement team level. At the firm level, firms must establish a system of quality control and policies to provide reasonable assurance that engagements comply with standards and firm reports are appropriate. At the engagement level, teams are responsible for implementing quality control procedures and providing information to the firm. Key terms related to quality control such as engagement partner, inspection, and monitoring are also defined.
This is a slide deck that starts to help those in the pharmaceutical research industry begin to understand the key differences between QC and QA. The presentation also delineates the different levels of QC and the types of QA audits. The presentation also touches on the do's and don't's of conduct during a FDA audit,
Performance Based Internal Quality Audit Guidesuranto2000
The document provides guidance for conducting internal quality audits (IQA) in 5 sections:
1. Introduction - Defines audits, criteria, and findings.
2. Audit Preparation - Covers understanding the process, making checklists, and collecting evidence.
3. Conducting the Audit - Guides interviewing auditees, gathering evidence using checklists, and probing issues.
4. Report Making - Offers steps to compile results, write finding statements, and determine applicability.
5. Requirement Area List - Lists ISO 9001 requirements and applicable areas for each.
The document provides guidance for internal auditors on ISO 9001:2015. It discusses planning an audit, conducting an opening and closing meeting, asking open-ended questions, documenting findings, and validating findings. The purpose of internal audits is to measure performance and determine conformance. Auditors should be prepared, conduct themselves professionally, and focus on continuous improvement opportunities.
This document is an internal audit checklist for ISO 9001:2008. It contains questions to evaluate an organization's compliance with ISO 9001 requirements for quality management systems. The checklist addresses topics such as quality manual documentation, document control, infrastructure, product realization planning, customer requirements, internal audits, and monitoring. Auditors will use this checklist to assess conformance and identify any nonconformities.
The document discusses internal audit methodology. It covers defining internal audit, its objectives, applicability, responsibilities under CARO 2020, and standards. It then discusses the risk-based internal audit methodology which includes understanding the business and risks, identifying key processes, creating an assurance plan, analyzing processes through interviews and mapping, and assessing process risks. The document provides details on each step of the internal audit methodology.
Practical approach to auditing is a presentation intended to help new auditors to quickly grab the skills and approach to audit engagements. The material touched on the attributes of auditors, audit planning, work programmes, audit journaling, working papers, audit test procedures, compliance and substantive test, elements of an audit report, file referencing etc..
The document discusses views on effective audit documentation from standard-setters, regulators, and practitioners. It notes that while audit documentation requirements are intended to improve audit quality, excessive documentation focused only on compliance can actually undermine quality by taking up too much audit time. Regulators find issues like insufficient evidence of professional skepticism and inconsistencies between risk assessments and procedures. The document provides resources on documenting skepticism and offers that stakeholders must work together to balance documentation needs with practical application in audits.
This document provides an overview of technology auditing, assurance, and internal controls. It discusses attestation and assurance services, financial audits, auditing standards, external vs internal auditing, information technology audits, and internal controls including SAS 78. Key points include definitions of attestation, assurance, and financial audit services; a comparison of external and internal auditing; descriptions of auditing standards, IT audits, and the three levels of internal controls - preventive, detective, and corrective. It also summarizes the five components of internal control as defined in SAS 78: control environment, risk assessment, control activities, information and communication, and monitoring.
The process of issuing audit report by ca firmEnamul Islam
The document discusses the process of issuing an audit report by a Chartered Accountant (CA) firm. It begins with introductions and objectives. It then describes the audit process, which includes planning, collecting evidence, controlling/recording, review, and issuing an opinion. Key steps involve assessing risk, obtaining documentation, and ensuring auditor independence. The CA firm evaluates clients carefully before accepting engagements. The conclusion emphasizes that a quality audit promotes integrity and reliability in financial reporting.
This document provides an overview of audit planning topics including:
- The importance of audit planning to obtain sufficient evidence and keep costs reasonable.
- Key planning activities like understanding the client's business, assessing risks, and developing responses.
- How inherent, control, and detection risks contribute to overall audit risk.
- The use of analytical procedures during planning, fieldwork, and completion to identify unusual fluctuations.
- The three phases of audit work: planning, interim, and final, and how they relate to risk assessment and evidence gathering.
The document discusses key aspects of statutory audits, including audit documentation, planning, fieldwork, completion, and reporting obligations. It covers topics such as the purpose of audit documentation, planning considerations, types of audit evidence, subsequent event procedures, and objectives of audit reporting. Key requirements around documentation standards, tailoring the audit, and ensuring work is reviewed are also summarized.
Hanrick Curran Audit Training - Internal Controls - March 2013Matthew Green
Training delivered to assisting audit staff as part of their continuing professional development/education (CPE/CPD). Provided in a 60 minute session with substantial discussion and interaction.
This document contains information about internal auditing basics, including the audit process, terminology, types of audits, and accepting an audit assignment. It discusses the key steps of an audit as plan, perform, report, and follow-up. It defines important terms like auditor, auditee, client, and internal vs external audits. It categorizes audits as product, process, and system audits. Finally, it outlines the questions an auditor should ask when accepting an assignment: availability, conflict of interest, and competence. The overall document provides foundational information and concepts to understand internal auditing.
The document discusses planning and documentation standards for internal audits. It covers objectives of planning, factors affecting the planning process and scope, and the planning process itself which includes establishing the audit universe and objectives. It emphasizes obtaining appropriate audit evidence to draw reasonable conclusions and reviewing evidence obtained. Documentation standards are also outlined, including matters to be documented, identification of preparers and reviewers, and document retention policies.
Audit company - Audit for companies - PKC Management ConsultingPKCIndia2
An audit company is usually hired to perform the audit process. The auditor will work closely with the company's finance team to review financial statements, internal controls, and other relevant documents. we will provide an overview of how audits work, including the different stages and levels involved in the process. Whether you are a business owner or a professional looking to learn more about auditing practices, this article will serve as a useful guide. In conclusion, PKC Management Consulting is a reputable audit company that offers comprehensive and efficient auditing services for companies of all sizes. With their team of experienced auditors and consultants, they provide valuable insights and recommendations to improve business operations and financial management. Their commitment to integrity, professionalism, and customer satisfaction sets them apart in the industry. If you're looking for an audit partner that can help you achieve your business goals, PKC Management Consulting is the right choice. Contact them today to learn more about their services and how they can add value to your organization.
Proactive Internal Auditing -- The Key to Improving Your Quality SystemSafetyChain Software
Auditing against a standard like ISO 9001 or one of the GFSI schemes isn’t easy and is rarely effective without the proper training, guidance, and tools. IJ Arora, CEO of Quality Management International Inc. (QMII) provides tips on the Internal Auditing process.
This document provides an overview of audit planning based on chapters 8 and 9 of an auditing textbook. It discusses the key stages and activities of audit planning, including understanding the client's business and industry, assessing risks, determining materiality, understanding internal controls, planning audit procedures, and developing an audit program. The overall purpose of audit planning is to obtain sufficient evidence for the audit in an effective and efficient manner.
Navigating the Realm of Audits: Understanding, Preparation, and Complianceamanrajput052046
Audits are systematic examinations of financial records, procedures, or compliance protocols carried out by internal or external entities to ensure accuracy, transparency, and adherence to regulations. These assessments are crucial for businesses, government agencies, and organizations to maintain trust, identify potential risks, and enhance operational efficiency. Audits encompass various forms such as financial audits, which scrutinize financial statements and transactions for accuracy and legality; compliance audits, ensuring adherence to laws, regulations, and internal policies; and operational audits, evaluating the effectiveness of operational processes and identifying areas for improvement. The audit process typically involves planning, fieldwork, reporting, and follow-up actions. Effective audit management requires meticulous preparation, clear communication, and collaboration among stakeholders. Embracing audits as opportunities for growth rather than mere compliance exercises can lead to strengthened internal controls, improved decision-making, and ultimately, enhanced organizational resilience in the dynamic landscape of today's business environment.
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It vontains details about ITGC, ITAC, SOC , Itdm, it sox. Also, having brief description about the governance and the other objective being performed as a part of the interview and ither ckurnt engagement.
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Examining Audit Quality, Common Engagement Deficiencies and the Importance of Documentation
1. Page 1 | Confidential and Proprietary Information
Examining Audit Quality, Common
Engagement Deficiencies and the
Importance of Documentation
Dawn McGeachy, BAccS, FCUIC, ACUIC, FCGA, LPA
Member, IFAC SMP Committee
International Federation of Accountants &
Institute of Chartered Accountants of Jamaica
Business Development Conference
Jamaica Conference Centre
March 18, 2014
2. Page 2 | Confidential and Proprietary Information
In the Beginning………
• ISQC1, Quality Control for Firms that Perform Audits and
Reviews of Historical Financial Information and Other
Assurance and Related Service Engagements became
effective as of December 15, 2009 (firm level)
• ISA 220, Quality Control for an Audit of Financial
Statements, effective for audits of financial statements for
periods beginning on or after December 15, 2009
(engagement level)
3. Page 3 | Confidential and Proprietary Information
How the Profession Is Responding
In the News
• IAASB Staff Q&A publication, Applying ISQC 1 Proportionately
with the Nature and Size of a Firm
• Forum of Firms Information Paper, Engagement Quality Control
Reviews: Practical Considerations
• CPA Canada release, Enhancing Audit Quality: Canadian
Perspectives, Conclusions and Recommendations
• European Commission proposals on specific requirements
regarding statutory audits of public-interest entities
4. Page 4 | Confidential and Proprietary Information
How the Profession Is Responding
In the News
• IAASB project to enhance auditor reporting
• US Public Company Accounting Oversight Board (PCAOB) concept
releases dealing with the form and content of reports on audited
financial statements and with ways to enhance auditor independence,
objectivity, and professional skepticism
• UK Financial Reporting Council proposals for effective company
stewardship
• Financial Stability Board’s thematic review on risk governance
• Takes stock of risk governance practices at both national authorities and
firms, notes progress made since the financial crisis, identifies sound
practices, and offers recommendations to support further improvements
• And more …
5. Page 5 | Confidential and Proprietary Information
Why Should We Care?
• The public appears to be increasingly concerned about
audit failures.
• There are gaps—in both expectations and information
• Firms are being sanctioned more frequently with greater
punishment being meted out.
• The profession is struggling to demonstrate it has heard
these concerns and is doing something about it.
6. Page 6 | Confidential and Proprietary Information
Looking to Real Life Examples
Table 4: Alleged Auditor Involvement by Auditor Type
(n = 87 companies)
Type of Case Number of Cases
Naming National
Firm Auditors
Number of Cases
Naming Non-
National Firm
Auditors
Total
Bogus Audit 0 6 6
Actual audit, but
audit was deficient
35 46 81
Total 35 52 87
7. Page 7 | Confidential and Proprietary Information
Looking to Real Life Examples
Table 7: Primary Deficiencies in Actual Audits
(n = 81 companies)
Problem Area Percentage (Number) of
Cases
1. Failure to gather sufficient competent audit evidence 73% (59 cases)
2. Failure to exercise due professional care 67% (54)
3. Insufficient level of professional skepticism 60% (49)
4. Failure to obtain adequate evidence related to management representations 54% (44)
5. Failure to express an appropriate audit opinion 47% (38)
6. Incorrect/inconsistent interpretation or application or requirements of GAAP 37% (30)
7. Inadequate consideration of fraud risks 33% (27)
8. Inadequate planning and supervision 31% (25)
9. Failure to adequately address audit risk and materiality 21% (17)
10. Inadequate preparation and maintenance of audit documentation 20% (16)
11. Failure to adequately communicate with the audit committee 17% (14)
12. Failure to recognize/ensure disclosure of key related parties 15% (12)
13. Failure to adequately perform audit procedures in response to assessed risks 15% (12)
14. Inappropriate confirmation procedures 15% (12)
15. Failure to evaluate adequacy of disclosure 15% (12)
16. Internal control-related issues including over-reliance on internal controls, failure to obtain an understanding of internal control, and failure to obtain an
understanding of the entity and its environment.
14% (11)
8. Page 8 | Confidential and Proprietary Information
Inspection Findings
Consistent findings include concerns about:
• Professional skepticism
• Supervision and review
• Substantive analytical procedures (predicted results
compared to actual results)
• The quality of audit evidence in audit files
9. Page 9 | Confidential and Proprietary Information
Root Causes of Audit Failure
• Misapplication or misinterpretation of generally accepted
auditing standards;
• The auditor commits fraud by knowingly issuing a more
favorable audit report than is warranted;
• The auditor is unduly influenced by having direct or
indirect financial interest in the client; and
• The auditor is unduly influenced because of some
personal relationship with the client beyond what is
expected in a normal audit between independent parties.
10. Page 10 | Confidential and Proprietary Information
Leadership Responsibilities for Quality Within Firm
11. Page 11 | Confidential and Proprietary Information
Back to Basics—Examining ISQC 1 Requirements
7 Key Actions
1. Always write it down – document, document, document (ISQC
1.57)
2. Lead from the front giving consistent messages on the importance
of quality control (ISQC 1.18)
3. Always act ethically in accordance with the IESBA Code of Ethics
for Professional Accountants (ISQC 1.20)
4. Focus on the right clients being matched by the right skills with an
emphasis on integrity and competencies (ISQC 1.31)
12. Page 12 | Confidential and Proprietary Information
Back to Basics—Examining ISQC 1 Requirements
7 Key Actions
5. Maintain capable and competent personnel giving due attention to
the firm’s human resources policies and procedures (ISQC 1.29)
6. Delivery quality audits, consulting when needed and meeting
requirements for engagement quality control review (ISQC 34 -35)
7. Monitor the firm’s system of quality control and carry out a periodic
objective inspection of a selection of competed audit
engagements (ISQC 1.48)
13. Page 13 | Confidential and Proprietary Information
• Completeness and accuracy
• Clarity and understanding
• Pertinence
• Logical arrangement
• Legibility and neatness
General Guidelines
14. Page 14 | Confidential and Proprietary Information
• At a minimum, all working paper files should include:
– Planning
– Review/examination or evaluation of adequacy and
effectiveness of the system of internal control
(if applicable)
– Procedures performed, information obtained, and
conclusions reached
– File review
– Reporting
– Any follow-up
Organization of Working Papers
15. Page 15 | Confidential and Proprietary Information
• Documentation of information obtained about the
component of the file being reviewed
• Authoritative support for findings/recommendations
contained in the accountants/auditor communication
• Means of evaluation
• Provides a guide for how to complete subsequent
engagements for the client
Telling the Story
16. Page 16 | Confidential and Proprietary Information
• Partner involvement in planning
• Customizing working paper forms and checklists
(scalable for different sizes and complexity, particular
industries, and particular engagement risks)
• Ongoing staff communication and file reviews
• Engagement productivity
• Identify areas where staff training is required
• Determine what to include or exclude
• Identify how to address the risk of fraud (if applicable)
• Efficient allocation of staff and other resources
Planning
17. Page 17 | Confidential and Proprietary Information
• Undistracted time between the engagement partner and
key engagement personnel
• Willingness to make key decisions based on appropriate
professional judgment
• Inform engagement team what the entity is all about
• What has changed since last year and the implications of
these changes so that they are in a position to focus on
where documentation changes might be required
• Ensure engagement team understands what they are
required to do and why
Ingredients for Effective Planning
18. Page 18 | Confidential and Proprietary Information
• Include identifying characteristics of the specific items or
matters tested or reviewed
• Document discussions of significant matters with
management
• Identify how you addressed information discovered that
contradicts or is inconsistent with your previous
understanding or representations made by management
• Any departures from a basic principle or essential
procedure, and the alternative procedure performed
Adequate Documentation
19. Page 19 | Confidential and Proprietary Information
• Necessary for quality control purposes
• Provides assurance that the work delegated by the partner
has been properly completed
• Provides evidence that an effective engagement has been
carried out
• Increases the economy, efficiency, and effectiveness of the
engagement
• Provides sufficient details and up-to-date facts which justify
the reasonableness of the accountant/auditor’s conclusions
• Retains a record of matters of continuing significance to the
client
Importance of Documentation
20. Page 20 | Confidential and Proprietary Information
• Has a clear objective (i.e., in the case of an audit provides the
audit assertion tested)
• States the year/period end (so that it cannot be confused with
a different time frame)
• Details the full extent of the test (i.e. number of items tested
and how this number was determined)
• When reference is made to another WP, the full reference to
the other WP
• States the results of the procedure/testing, without bias,
based on documented facts
• Conclusions reached that are consistent with the results of the
procedures/testing (and that will withstand independent
scrutiny)
• Clear index referencing
• Initialed and dated by preparer and reviewer(s)
“Good” Documentation
21. Page 21 | Confidential and Proprietary Information
• Summary of the results of work performed (could
someone retrace your steps?)
• If the file contains internal control and workflow
evaluations, conclusions on the adequacy of the system
or process
• Testing conclusions
Each Step Along the Way
22. Page 22 | Confidential and Proprietary Information
• Audit documentation
– Assists the engagement team in planning and performing
the audit
– Assists supervisory engagement team members in
directing and supervising the work
– Enables accountability
– Provides a record of matters of continuing significance;
– Enables the conduct of quality control reviews and practice
inspections
• ISA 230 also includes an Appendix which details specific audit
documentation requirements in other CASs
• This provides easy reference for DOCUMENTATION that is
required to be included within each audit working paper file
ISA Requirements—ISA 230
23. Page 23 | Confidential and Proprietary Information
• Audit evidence
– Requirement is to design and perform audit procedures in such a
way as to enable the auditor to obtain sufficient appropriate audit
evidence to be able to draw reasonable conclusions on which to
base the auditor’s opinion
• Consider
– Relevance and reliability of the information
– Accuracy and completeness of the information
– Is the information detailed AND sufficiently precise for audit
purposes?
ISA Requirements—ISA 500
24. Page 24 | Confidential and Proprietary Information
• Audit evidence—specific considerations for selected
items, including:
– Inventory
– Litigation and Claims
– Segment Information
ISA Requirements—ISA 501
25. Page 25 | Confidential and Proprietary Information
• Inventory
– If material, sufficient appropriate audit evidence must
be obtained regarding the existence and condition of
inventory by:
• Attendance at the physical inventory counting
(unless impracticable); and
• Performing audit procedures over the entity’s final
inventory records to determine whether it accurately
reflects actual inventory count results.
ISA Requirements—ISA 501
26. Page 26 | Confidential and Proprietary Information
• Inventory
– If the physical count is conducted at a date other than the
date of the financial statements, the auditor MUST perform
audit procedures to obtain evidence about whether
changes in inventory between the count date and the date
of the financial statements are properly recorded.
– If the physical count has been scheduled for the
year/period-end date and the auditor is unable to attend
due to unforeseen circumstances the auditor MUST make
or observe some physical counts on an alternative date,
and perform audit procedures on intervening transactions.
ISA Requirements—ISA 501
27. Page 27 | Confidential and Proprietary Information
• Inventory
– If inventory under the custody and control of a third
party is MATERIAL to the financial statements, the
auditor MUST obtain evidence regarding its existence
and condition by:
• Requesting confirmation from the third party as to
the quantities and condition of inventory held on
behalf of the entity; and
• Performing an inspection or other audit procedures
appropriate in the circumstances.
ISA Requirements—ISA 501
28. Page 28 | Confidential and Proprietary Information
• Litigation and Claims
– The auditor must design and perform audit procedures that
make it possible to identify litigation and claims.
– If RMM has been identified, or when audit procedures
indicate that other material litigation or claims may exist,
the auditor shall seek DIRECT communication with the
entity’s EXTERNAL legal counsel.
– Material litigations and claims MUST be disclosed and
accounted for in the financial statements.
– Other relevant procedures may have been identified
through the RMM procedures during the planning phase of
the audit.
ISA Requirements—ISA 501
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• Communication with external legal counsel includes:
– A list of litigation and claims;
– Management’s assessment of the outcome of each of
the identified litigation and claims and its estimate of
the financial implications, including costs involved; and
– A request that legal counsel confirm the
reasonableness of management’s assertions and
provide further information if the list is considered to be
incomplete or incorrect.
ISA Requirements—ISA 501
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• Segment Information
– Obtain an understanding of the methods used by
management in determining segment information; and
– Perform analytical procedures and other audit
procedures (as appropriate).
ISA Requirements—ISA 501
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Professional Skepticism
Academic research suggests there are 6 characteristics of
skepticism:
1. Questioning mindset
2. Suspension of judgement
3. Search for knowledge
4. Interpersonal understanding
5. Autonomy
6. Self-esteem
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More than ever, the need to maintain professional
scepticism is critical:
• Over-reliance on management representations
• Acceptance of unreliable information or evidence
• Inconsistent or contradictory information and evidence
• Tendency to look for corroborating information or
evidence rather than challenging management’s
assertions
Professional Skepticism
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Improve training
• Strengthen inquiry techniques
• Challenge management’s assertions
• Consider different alternatives
• Seek reliable information/evidence
• Respond to inconsistencies and contradictions
Professional Skepticism—What Can You Do?
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Increase awareness of standards
• Ensure staff have an understanding of the reason for
required procedures
• Promote a questioning mind
Professional Skepticism—What Can You Do?
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Strengthen documentation procedures
• Ensure that documentation includes the thought process,
NOT just conclusions from the work done
• Must provide a roadmap of the engagement and how
conclusions were reached
Professional Skepticism—What Can You Do?
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• Revise the file index, if required;
• Consider how file information can best be reviewed—
current year and next year:
– Document all risks identified, and their assessment, in one place
– Standardize how internal controls will be documented
(if applicable)
– Record engagement issues, the resolution, and any related
communications to management and TCWG in one place
Continual Improvement
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• Any time it is necessary to modify existing working paper
file documentation regardless of the nature of the
modifications or additions, document:
– When and by whom they were made, and reviewed;
– The specific reasons for making them; and
– The effect, if any, on the accountant/auditor report issued.
After Final Assembly
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Document
• Circumstances encountered
• New or additional procedures performed
• Evidence obtained
• Conclusions reached
• When and by whom the resulting changes to
documentation were made and reviewed
Exceptional Circumstances