Ethical Compliance – NBC Institute

AAA – May 2022 – L3 – Q1 – Quality Control in Audit Firms

Discuss ISQC 1 quality control requirements for leadership, ethics, engagements, human resources, monitoring, and documentation.

Question

A firm of Chartered Accountants has 25 partners and 100 audit staff. The firm provides a range of audit, assurance, tax and advisory/consultancy services. The firm has offices around the country and clients ranging from sole traders to limited liability companies.

The quality control partner has recently resigned. He has not yet been replaced as the Board of Partners of the firm has not been able to find a suitable replacement. Before his departure, the quality control partner was in the process of implementing a system of ethical compliance for assurance staff. Based on the foregoing, staff would be required to confirm in writing their compliance with the Code of Ethics, hence, implementation of this system is incomplete.

Oshodi Plc is one of the firm’s largest clients for which the firm provides audit, tax, and other advisory services. A new engagement partner has been assigned to the audit, as the previous partner in charge was the one who resigned. The fee for the audit work and other services has been set at the same level as the previous year in spite of the fact that additional work will need to be performed because Oshodi Plc has introduced a new computerized system. The starting date of the audit has been delayed due to problems with the new system. The management of Oshodi Plc was very insistent that the fee should not be increased as a result of this.

Required:

Discuss the requirements of ISQC 1: International Standard on Quality Control on overall audit firm level, which address each of the following:

a. Leadership responsibilities for quality (3 Marks)
b. Ethical requirements (5 Marks)
c. Acceptance and continuance of engagements (5 Marks)
d. Human resources (5 Marks)
e. Engagement performance (5 Marks)
f. Monitoring (4 Marks)
g. Documentation (3 Marks)

Answer

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Tags: Audit Quality Control, Engagement Performance, Ethical Compliance, ISQC 1
Level: Level 3

Topic: Quality Control in Audit Firms

AA – May 2024 – L2 – SA – Q5 – Introduction to Auditing

This question tests understanding of the objectives and responsibilities of an independent auditor as specified in ISA 200 and explores the roles of auditing standards in the accounting profession.

Question

The International Standards on Auditing 200 (ISA 200) made some important pronouncements on the Independent Auditor.

Required:

a. Explain two objectives of the Independent Auditor as specified in ISA 200. (4 Marks)

b. Explain four tasks ISA 200 requires the Independent Auditor to perform. (8 Marks)

c. Explain the roles of auditing standards in the accounting profession. (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Roles, Auditing Standards, Ethical Compliance, Independent Auditor, ISA 200
Level: Level 2

Topic: Introduction to Auditing
Series: MAY 2024

AAA – Nov 2016 – L3 – Q2a – Practice management | The audit approach

Discuss the quality control issues in an audit firm when key personnel changes occur and there are challenges in handling a major client.

Question

Nii Adjei & Associates is a firm of Chartered Accountants that provides various services (including Audit, Assurance, Tax, and Advisory services) to clients undertaking various services. Nii Adjei & Associates has offices in Accra, Tema, Koforidua, and Kumasi.

Owusu Mensah was the quality control partner of Nii Adjei & Associates. Owusu Mensah had started the implementation of an ethical compliance system for the assurance staff when he was involved in an accident on the Tema motorway on his way home and died. The said system required that staff should confirm in writing their compliance with the code of ethics of The Institute of Chartered Accountants (Ghana). Arrangement to get a replacement for Owusu Mensah had not been completed.

Osei Acquah was the engagement partner in charge of C. Kokuvi Ltd. (a major client that Nii Adjei & Associates provides audit service, preparation of tax computations, and other advisory services). Osei Acquah had an attack on his brain which resulted in a stroke. This forced Nii Adjei & Associates to engage Thomas Essien as the new engagement partner to take charge of the audit of C. Kokuvi Ltd. C. Kokuvi Ltd is not prepared to increase the audit fees from that of the previous year despite the fact that additional work has to be performed as a result of the introduction of a new computer system.

In addition, the starting date of the audit has been delayed as a result of problems with the new system.

Required:

Discuss any quality control issues identified in the above scenarios and recommend the action which should be taken by Nii Adjei and Associates. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Firm Management, Audit risks, Ethical Compliance, Quality control
Level: Level 3

Topic: Practice management, The audit approach
Series: NOV 2016

AAA – May 2022 – L3 – Q1 – Quality Control in Audit Firms

Discuss ISQC 1 quality control requirements for leadership, ethics, engagements, human resources, monitoring, and documentation.

Question

Required:

Discuss the requirements of ISQC 1: International Standard on Quality Control on overall audit firm level, which address each of the following:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Quality Control, Engagement Performance, Ethical Compliance, ISQC 1
Level: Level 3

Topic: Quality Control in Audit Firms

AA – May 2024 – L2 – SA – Q5 – Introduction to Auditing

This question tests understanding of the objectives and responsibilities of an independent auditor as specified in ISA 200 and explores the roles of auditing standards in the accounting profession.

Question

The International Standards on Auditing 200 (ISA 200) made some important pronouncements on the Independent Auditor.

Required:

a. Explain two objectives of the Independent Auditor as specified in ISA 200. (4 Marks)

b. Explain four tasks ISA 200 requires the Independent Auditor to perform. (8 Marks)

c. Explain the roles of auditing standards in the accounting profession. (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Roles, Auditing Standards, Ethical Compliance, Independent Auditor, ISA 200
Level: Level 2

Topic: Introduction to Auditing
Series: MAY 2024

AAA – Nov 2016 – L3 – Q2a – Practice management | The audit approach

Discuss the quality control issues in an audit firm when key personnel changes occur and there are challenges in handling a major client.

Question

In addition, the starting date of the audit has been delayed as a result of problems with the new system.

Required:

Discuss any quality control issues identified in the above scenarios and recommend the action which should be taken by Nii Adjei and Associates. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Firm Management, Audit risks, Ethical Compliance, Quality control
Level: Level 3

Topic: Practice management, The audit approach
Series: NOV 2016

Question Tag: Ethical Compliance

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AAA – May 2022 – L3 – Q1 – Quality Control in Audit Firms

Discuss ISQC 1 quality control requirements for leadership, ethics, engagements, human resources, monitoring, and documentation.

AA – May 2024 – L2 – SA – Q5 – Introduction to Auditing

This question tests understanding of the objectives and responsibilities of an independent auditor as specified in ISA 200 and explores the roles of auditing standards in the accounting profession.

AAA – Nov 2016 – L3 – Q2a – Practice management | The audit approach

Discuss the quality control issues in an audit firm when key personnel changes occur and there are challenges in handling a major client.

AAA – May 2022 – L3 – Q1 – Quality Control in Audit Firms

Discuss ISQC 1 quality control requirements for leadership, ethics, engagements, human resources, monitoring, and documentation.

AA – May 2024 – L2 – SA – Q5 – Introduction to Auditing

This question tests understanding of the objectives and responsibilities of an independent auditor as specified in ISA 200 and explores the roles of auditing standards in the accounting profession.

AAA – Nov 2016 – L3 – Q2a – Practice management | The audit approach

Discuss the quality control issues in an audit firm when key personnel changes occur and there are challenges in handling a major client.

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AAA – May 2022 – L3 – Q1 – Quality Control in Audit Firms

Discuss ISQC 1 quality control requirements for leadership, ethics, engagements, human resources, monitoring, and documentation.

You're reporting an error for "AAA – May 2022 – L3 – Q1 – Quality Control in Audit Firms"

AA – May 2024 – L2 – SA – Q5 – Introduction to Auditing

This question tests understanding of the objectives and responsibilities of an independent auditor as specified in ISA 200 and explores the roles of auditing standards in the accounting profession.

You're reporting an error for "AA – May 2024 – L2 – SA – Q5 – Introduction to Auditing"

AAA – Nov 2016 – L3 – Q2a – Practice management | The audit approach

Discuss the quality control issues in an audit firm when key personnel changes occur and there are challenges in handling a major client.

You're reporting an error for "AAA – Nov 2016 – L3 – Q2a – Practice management | The audit approach"

AAA – May 2022 – L3 – Q1 – Quality Control in Audit Firms

Discuss ISQC 1 quality control requirements for leadership, ethics, engagements, human resources, monitoring, and documentation.

You're reporting an error for "AAA – May 2022 – L3 – Q1 – Quality Control in Audit Firms"

AA – May 2024 – L2 – SA – Q5 – Introduction to Auditing

This question tests understanding of the objectives and responsibilities of an independent auditor as specified in ISA 200 and explores the roles of auditing standards in the accounting profession.

You're reporting an error for "AA – May 2024 – L2 – SA – Q5 – Introduction to Auditing"

AAA – Nov 2016 – L3 – Q2a – Practice management | The audit approach

Discuss the quality control issues in an audit firm when key personnel changes occur and there are challenges in handling a major client.

You're reporting an error for "AAA – Nov 2016 – L3 – Q2a – Practice management | The audit approach"

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