Microsoft Word Audit Quality-Framework Final vs 20140214
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| Appendix 2 52 experience and coaching within audit firms. IESs are written for IFAC member bodies (which may have responsibility for the theoretical training), but do not apply directly to audit firms (which provide the practical experience and coaching). It may assist audit quality if both training organizations and audit firms use the same competence framework. 1.6.3 Arrangements Exist for Updating Auditors on Current Issues and for Providing Training to Them in New Accounting, Auditing or Regulatory Requirements 75. In addition to training related to an auditor’s IPD, appropriate arrangements within a country for CPD are an important factor in contributing to audit quality. CPD needs to be provided in order that more experienced auditors continue to develop their skills and knowledge related to auditing, and keep informed about changes in the accounting and regulatory requirements. 76. CPD is particularly important when there are major changes to requirements relating to financial reporting and auditing. This provides an opportunity to brief auditors on the new technical requirements, to explain the objectives of those changes, and to help create the understanding necessary for the new requirements to be implemented in a cost effective manner. 1.6.4 The Auditing Profession Is Well-Positioned to Attract and Retain Individuals with Appropriate Qualities 77. The competences of audit partners and staff are a critical factor underlying audit quality. While training is important, some of the required qualities are, to a degree, inherent in the individuals. It is therefore important that individuals with the right qualities are attracted to a career in the auditing profession. 78. There are likely to be a number of factors that will influence the individuals attracted to a career in the auditing profession, including: The status of auditing as a profession in the national environment; Perceptions of career opportunities and remuneration incentives; The nature of the work, including its role in relation to the public interest; and The quality of training provided. 79. The same factors are likely to influence individuals’ decisions to remain in the auditing profession, and pursue an extended career in auditing. In some countries, there is a tendency for large numbers of accountants to leave the audit firms and take jobs in business. While this may have a beneficial impact on financial reporting, it can limit the number of experienced staff available to audit firms and thereby jeopardize audit quality. 80. The status of the auditing profession in a national environment can also impact the respect for auditors and therefore the effectiveness of the audit function. In environments where the audit profession is not well respected or given appropriate authority, auditors will be in a weaker position relative to management. In such circumstances, there may be a lower likelihood that auditors will probe management on significant matters or stand firm on significant audit issues. Conversely, where the profession is highly regarded or is conferred appropriate authority through the relevant mechanisms, it will be easier for auditors to demonstrate professional skepticism and undertake robust audits. |