Microsoft Word Audit Quality-Framework Final vs 20140214
Download 1.81 Mb. View original pdf
|
- Navigate this page:
- Audit Process and Quality Control Procedures – National Level
| Appendix 2 58 108. In addition to internal processes to monitor audit quality, audits may be subject to external review. The results of these reviews (including inspections performed by independent audit regulators) provide important feedback that lead to actions that contribute to enhancing audit quality. 109. In addition to addressing any shortcomings that have been identified on individual audits, it is important that audit firms take appropriate actions to address systemic issues revealed by both internal and external monitoring activities and take appropriate action. 1.8.6 Where Required, Effective Engagement Quality Control Reviews (ECQRs) Are Undertaken 110. EQCRs allow for an objective evaluation of the significant judgments made by the engagement team and the conclusions reached in formulating the auditor’s report. They are required to be performed on audits of listed companies and those other audit engagements for which the audit firm considers them appropriate, such as audits of public interest entities. 111. To be effective, EQCRs involve discussion of significant matters and conclusions, a review of selected engagement documents, and a review of the financial statements. They need to be performed by individuals with the necessary experience, authority and time. EQCRs require appropriate liaison between the review partner and the engagement partner so that they can be performed on a timely basis and allow the engagement team to respond appropriately to findings. 1.9 Audit Process and Quality Control Procedures – National Level 112. Key attributes are: Auditing and other standards are promulgated that make clear the underlying objectives as well as the specific requirements that apply. Bodies responsible for external audit inspections consider relevant attributes of audit quality, both within audit firms and on individual audit engagements. Effective systems exist for investigating allegations of audit failure and taking disciplinary action when appropriate. 1.9.1 Auditing and Other Standards Are Promulgated that Make Clear the Underlying Objectives as Well as the Specific Requirements that Apply 113. Auditing and other requirements may be imposed by law or regulations or mandated through the national professional accountancy organization. It is important that such requirements are high- quality and make clear the underlying objectives. ISAs, as issued by the IAASB, contain objectives, requirements, and application and other explanatory material. 114. The IESBA sets high-quality ethics standards for professional accountants through the development of a robust, internationally appropriate Code of Ethics for Professional Accountants. The IAESB develops and enhances professional accountancy education—encompassing technical competence, as well as professional skills, values, ethics, and attitudes for professional accountants—through the promulgation of International Education Standards (IESs). There is widespread adoption of these standards at a national level. |