In a time when audit quality is under heavy scrutiny, we have to identify if we are part of the problem, or the solution.
What happens when your audit files are selected for review by IRBA? What can be done to avoid negative findings during an IRBA Inspection?
These questions have no easy answers. However, it is not impossible to overcome. What makes the process challenging is the staggering number of Auditing Standard requirements that need to be adhered to.
The key approach is to:
• Identify which of the findings repeatedly make their way onto the IRBA Public Inspection Report, and
• Establish why there are repeated infringements.
None
Inspection findings from the most recent IRBA report (2019) and common mistakes to avoid. Some of the most relevant topics I will discuss are the following:
• All the procedures that must be performed during client acceptance
• 7 Step plan to comply with the ethical and independence requirements during the engagement
• 10 Significant matters that must be discussed with management
• Calculating the correct performance materiality amount to avoid over-auditing
• How to perform powerful preliminary analytical procedures
• All the different risk assessments
o Requirements with regards to controls
o Requirements with regards to fraud
o Requirements with regards to NOCLAR
• Responses to risk
• General mistakes and issues noted on working papers relating to improper documentation
• Subsequent events
• Going concern
• Evaluation of misstatements
• Final analytical review
• Lock down of files
