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.
After this course delegates should thoroughly understand how important quality is within an audit and be able to apply the knowledge obtained in all audit engagements to ensure quality is not compromised.
Delegates should also be able to understand their role of Manager, Partner or reviewer of an audit file and know exactly what to look for when they review an audit file.
Finally, the importance of documentation should be acknowledged and this course should enable partners and managers to ensure all documentation that is needed in terms of the ISA’s are included in the audit file.
We will start the course by looking at what is Quality Control and whose responsibility is it. Focusing on ISQC 1 and ISA 220 we will determine exactly what is the responsibilities of the managers and partners and how can they ensure quality control in all their audit files.
We will then look at the importance of documentation within an audit as this forms the basis for quality control.
The second part to quality control is a proper review of the file so we will be looking at the following:
• What is the purpose of a review?
• What are the levels of reviewers?
• What are the responsibilities of each reviewer?
We will than look at the following specific sections within the audit and their quality control and documentation considerations, while also going through the inspection finding from the inspection report and common mistakes to avoid:
• Pre-engagement activities
o Client acceptance
o Engagement letter
o Ethical requirements
o Obtaining an understanding of the entity
• Risk assessment process
o Discussions with management including fraud discussions
o Preliminary Analytical review
o Risk assessment at financial statement level as well as at assertion level
o Team meetings
o Overall responses to risk at financial statement level
o Responses to risks at assertion level
• Conducting the audit
o Requirements with regards to test of controls
o General mistakes and issues noted on working papers
o Discuss each FSA in detail and review notes from IRBA
o Subsequent events
o Going concern
o Written representation
o Final materiality
o Unadjusted differences
o Final analytical review
o Lock down
o Making changes after lock down
o Audit report
o Reporting in terms of section 45 (RI)
This training will be presented at an advanced level and all seniors, Managers and Partners that form part of the review process will benefit
Delegates must bring their own computers with Draftworx already loaded.
All software must be fully licensed. All other material and stationery will be provided.