You are the Quality Control partner of a newly established medium sized firm of Chartered Accountants.
Required:
Prepare a checklist for assessing quality of audit engagements with regard to planning of audit. (Any TEN (10) points). (5 marks)
View Solution
Did the auditor properly consider the following points before planning the audit engagement:
- Matters, such as applicable cost accounting orders relevant to the industry, audit of cost account rules, cost accounting practices, economic situations, laws, government regulations, and technological vicissitudes, which affect the industry?
- Matters having impact on entity’s business such as organization, types of products and services?
- Approved suitable level of knowledge of clients business and accounting system by documenting into working papers.
- Had an introductory meeting with the client key official to have detailed knowledge of the business and industry. And has the major issues, if any pointed out in the meeting were properly recorded and communicated to the client well before time?
- Implement the audit planned in planning the nature timing and extend other audit procedures?
- Attained and documented proper understanding of the internal audit functions based upon the involvement and collaboration of the internal audit
- Acquire adequate knowledge of the internal control structure to plan the audit and reflect to place expected reliance on internal cost accounting controls and appraised the nature, time and level of tests of controls to be performed.
- In case it became necessary to have discussions to make significant decisions, whether the results of such discussions documented in the audit working papers? In case the work papers showed client’s information technological risks, the impact on audit and the engagement team’s valuation of whether to include Information Technology Audit specialist?
- Assessed the quality of the performance of audit team in planning?
- Signed all procedures called for in the audit programs?