Microsoft Word Audit Quality-Framework Final vs 20140214
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- Knowledge, Skills, Experience and Time – Firm Level
| Appendix 2 49 56. Partners and staff often have responsibilities other than the audit of a single entity, and audits can be undertaken to challenging timetables. Planning is important, both at the level of an individual audit and at the level of the audit firm, to ensure that adequate resources are available to gather sufficient appropriate audit evidence and to interact appropriately with management and those charged with governance. 57. Audit firms are usually profit-making entities and the profitability of an audit firm is influenced by the relationship between the audit fees charged and the cost involved in gathering sufficient appropriate audit evidence. Audit engagement partners are usually accountable within their audit firms for the financial return on the audits they perform and, if audit fees are restricted by management, this may put pressure on the engagement team to change the nature and timing of audit procedures or reduce testing. This, in turn potentially threatens audit quality. 7 1.4.7 The Audit Engagement Partner and Other Experienced Members of the Engagement Team Are Accessible to Management and Those Charged With Governance 58. It is important that the audit engagement partner is accessible to senior members of management and those charged with governance. Regular contact allows the audit engagement partner to be well briefed on developments in the entity’s business as well as raise issues related to the audit on a timely basis. 1.5 Knowledge, Skills, Experience and Time – Firm Level 59. Key attributes are: Partners and staff have sufficient time to deal with difficult issues as they arise. Engagement teams are properly structured. Partners and more senior staff provide less experienced staff with timely appraisals and appropriate coaching or “on-the-job” training. Sufficient training is given to audit partners and staff on audit, accounting and, where appropriate, specialized industry issues. 1.5.1 Download 1.81 Mb. Share with your friends:
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