FA Exercise 6.0-A

The SA shall emphasize to the audit team that quality is important.

• Leadership responsibilities for quality

• Relevant ethical requirements

• Engagement Performance

• Acceptance and continuance of client relationships and specific engagements

Quality control provides reasonable assurance that personnel maintain independence (in fact and in appearance) in all required circumstances, and perform all responsibilities with integrity and objectivity.

• Relevant ethical requirements

• Engagement Performance

• Acceptance and continuance of client relationships and specific engagements

• Engagement Performance

There should be policies and procedures to provide reasonable assurance that members of the engagement team refer to authoritative literature or other sources and consult, on a timely basis, with competent and authoritative individuals within or outside COA.

• Engagement Performance

• Relevant ethical requirements

• Leadership responsibilities for quality

• Human Resources

Policies and procedures include determination of whether it is appropriate to assign an Auditor to an audit engagement/ auditee where a potential conflict of interest is identified.

• Acceptance and continuance of client relationships and specific engagements

• Relevant Ethical Requirements

• Engagement Performance

• Human Resources

Auditors should be honest and candid within the constraints of client confidentiality. Service and the public trust should not be subordinated to personal gain and advantage.

• Relevant Ethical Requirements

• Engagement Performance

• Human Resources

• Leadership responsibilities for quantity

Policies and procedures should be established to provide reasonable assurance that the work performed by engagement personnel meets applicable professional standards, regulatory requirements, and the standards of quality.

• Engagement Performance

• Human Resources

• Leadership responsibilities for quantity

• Monitoring

There should be an ongoing consideration and evaluation of the relevance and adequacy of existing policies, appropriateness of guidance materials/manuals, and effectiveness of required activities/procedures.

• Engagement Performance

• Human Resources

• Leadership responsibilities for quantity

• Monitoring

Quality control in audit depends heavily on the proficiency of the members of the engagement team.  Generally, the more able and experienced the Auditor assigned to a particular engagement, the less direct supervision is needed.

• Acceptance and continuance of client relationships and specific engagements

• Human Resources

• Leadership responsibilities for quantity

• Monitoring

Policies and procedures should be designed to provide reasonable assurance that Auditor/s assigned responsibility for quality control by COA leadership are technically capable, complies with ethical requirements and has the necessary authority to assume that responsibility.

• Acceptance and continuance of client relationships and specific engagements

• Human Resources

• Leadership responsibilities for quantity

• Monitoring

There should be an established process designed to provide reasonable assurance that the policies and procedures relating to the system of quality control are relevant, adequate, and operating effectively.

• Acceptance and continuance of client relationships and specific engagements

• Human Resources

• Leadership responsibilities for quantity

• Monitoring