this is qulaity manage,maNET

1. AUDITING AND ASSURANCE
MEMBERS
Wajiha Tahir 408
Kainaat Jameel 420
(Audit planning)
Norwoz butt 409
Aiman Shahid 431
(Quality Management)

2. Quality
management
NOROZ ABDUL WAHEED BUTT
BSAF21-409

3. What is quality management?
Quality management is core to audit, and a detailed understanding of
the importance of both audit quality and quality management
underlies the performance of an audit. Quality is a key part of
ensuring that audits are fit for purpose and retain the public trust.

4. Engagement resources
• Human
• Technological
• Intellectual
• Challenging and absorbing interest

5. Engagement performance
• Direction
• to ensure companies are moving forward in the right direction,
• Supervision
• The objective of the auditor is to supervise the audit engagement, including supervising the work
of engagement team members so that the work is performed as
• Review
• type of engagement that provides a limited level of assurance that a company's financial
statements comply with the applicable financial reporting framework.
• Eqr
• An EQR is defined by the IAASB as an 'objective evaluation of significant judgements
made by the engagement team and the conclusions reached thereon, performed by the
engagement quality reviewer (the reviewer) and completed on or before the date of the
engagement report'.

6. Monitoring and remediation
• Monitor
• providing relevant, reliable and timely information about the system of quality management,
and responding appropriately to identified
• Evaluate deficiencies
• can help define the gap in internal controls for remediation.
• Remediate
• this can result in changes to risk assessment process)
• Annual review

7. Quality management includes
• Ethical Requirements
• Ethical standards refer to the principles that promote trust, good behavior, fairness and governing the
conduct of a person.
• Engagement resource
• An audit engagement is an independent and systematic examination of a company's financial records,
systems, and controls by a qualified professional known ...
• Engagement performance
• An audit engagement is a formal agreement between an auditor and a client in which the auditor agrees to
provide an objective opinion on the client's financial statements.
• Monitoring and remediation
• The purpose of monitoring is to provide the firm with relevant, reliable and timely information about the
design, implementation and operation of the firm's System of Quality Management (“SoQM”). respond to
findings and deficiencies (as part of the remediation and root cause analysis (“RCA”) process).

8. AUDIT
PLANNING
• PURPOSE
• BENEFITS
• PROFESSIONAL SCEPTICISM AND
PROFESSIONAL JUDGEMENT
• PROCESS
• PLANNING ACTIVITIES

9. purpose
Objective of auditor is to do audit
Perform the function of audit in
an effective manner
Risky, complex and expensive
systems

10. • Attention to important
areas
• Identify and resolve
• Organize and manage
• Selection
• Direct and supervise
• Effectively coordinate
Benefits

11. professional judgement
Professional scepticis
m

12. Primarily
engagement
activities
Ethical manner
compliance
No misunderstanding
with the clients to the
terms of engagement
Planning activity
Develop strategy
Develop plan

13. AUDIT
STRATEGY

14. WHAT IS AUDIT STRATEGY:
The combination of audit approach, resources management & allocation, timing of the audit, the way how
the audit engagement in managed.
For Example:
The auditor will use risks based audit approach or top-down approach to conduct audit assignment.
Purpose of Audit Strategy
The main purpose of the audit strategy is to minimize the audit risks and to perform the audit in an
efficient and effective manner. It allows auditors to determine the number of resources needed and what
level of experience and expertise is required in the audit work.

15. ESTABLISHINGTHESTRATEGY:
Audit Strategy
Characteristics of the
engagement
Nature, timing and
extent of resources
Reporting, objectives,
timing and communication
Significant factors,
preliminary engagement
activities and knowledge
gained on other
engagements

16. Characteristics of the
engagement
For example, what accounting standards client uses, which industry it is in, where is
the location of branches or subsidiaries, any need for expert, what is reporting
currency, etc.
Reporting objectives, timing of
the audit, and nature of
communication
For example, the timing for reporting, meeting with management, nature, and timing
of communication with team members, any expected communications, etc.
Significant factors and
preliminary engagement
activities
For example, determining materiality, risk assessment, evidence of management’s
commitment and importance of internal controls, volume of transactions, any
significant changes in business, industry, and reporting requirement, etc.
Nature, timing, and extent of
resources
For example, selecting the engagement team, assigning the work to the team
members, and budgeting the engagement (e.g. how much time needed on a certain
area), etc.
Matters to consider when establishing
the overall audit strategy

17. Contents of Audit Strategy
Overview This section summaries the engagement and responsibilities of auditors e.g. giving an opinion
on financial statements and evaluating client’s practices regarding value for money.
Significant risks This section of audit strategy contents describes significant risks and how auditors will deal with
with them.
Audit scope and
approach
It describes what audit standards and approach auditors use and whose works auditors will rely
rely on e.g. the work of internal audit and expert, etc.
Materiality Materiality in this part may include both overall materiality and performance materiality.
Audit engagement team In this section, it usually describes senior team members including team leader and team
manager.
Timetable and
deliverables
This is where auditors describe the timetable of the audit with deliverable documents.
Independence This is the part of the audit strategy contents that describes how auditors ensure their
independence in the audit engagement.