- 10 Marks
AAA – Nov 2017 – L3 – Q2b – Practice Management, Audit Approach
Discuss the role of direction and supervision in ensuring quality control in an audit engagement.
Question
Your assurance firm is currently auditing the financial statements of one of your major clients for the year 2016. As the engagement partner, you are concerned with the quality of the audit, so you want to comply with ISA 220: Quality control for an audit of financial statements.
Specifically, you want to ensure that the factors involved in engagement performance regarding direction, supervision, and review of the audit are properly considered. This would give you the assurance that the audit complies with professional standards and that any report issued would be appropriate in the circumstances.
Required:
i) Discuss the important role direction plays in engagement performance. (5 marks)
ii) Why is it important to supervise staff assigned to audit engagement? (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Direction, Engagement Performance, ISA 220, Quality control, Supervision
- Level: Level 3
- Topic: Practice management, The audit approach
- Series: NOV 2017