ISA 220 – NBC Institute

AAA – May 2024 – L3 – SC – Q6 – Quality Control in Audit Firms

Outline the impacts of poor quality audit services and engagement partner responsibilities under ISA 220.

Question

The partners of a number of small firms, some of whom act as alternate firms to each other, were considering the outcome of some reviews by the Financial Reporting Council on some of the financial statements the firms prepared. These reviews showed significant lapses in the works they carried out and compliance failure of some appropriate standards. Some other practitioners among them also raised concerns about their failure to meet most of the monitoring guidelines issued by the Professional Practice Monitoring Committee of the Institute. Based on these, it has become imperative that something has to be done urgently to save them from further sanctions and possible litigations.

The partners of these small firms have consulted, sought, and obtained approval of your firm to train them on the requirements of relevant regulatory bodies as part of your firm’s contribution to the accountancy profession in general and in recognition of your firm as one of the reputable big firms. Your partner has directed that you prepare and make a presentation to help improve their service delivery standards.

Required:

Prepare an outline for a paper that will be used to address these practitioners on the following:

a. The consequences and actions that could arise as a result of poor quality professional service delivery.

(3 Marks)

b. The responsibilities of “key quality control matters” placed on the engagement partner in accordance with ISA 220-Quality Control for an Audit of Financial Statements. (12 Marks)

(Total 15 Marks)

Answer

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Tags: Audit Standards, ISA 220, Professional Compliance, Professional Practice Monitoring Committee, Quality control, Regulatory Sanctions
Level: Level 3

Topic: Quality Control in Audit Firms
Series: MAY 2024

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

Question

You are the manager in charge of the audit of God First Microfinance Co. Ltd for the year ended 31 December, 2021. Due to the highly regulated environment in which such companies have to operate, your partner has requested that, right from the planning stage of the audit, you strictly apply the requirement of ISA 220: Quality Control for an audit of financial statements.

Required:
State FIVE (5) reasons for the need for a quality control system in accounting firms.

Answer

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Tags: Accounting, Audit Firms, ISA 220, Quality control, Regulatory Environment
Level: Level 2

Topic: Professional and Ethical Considerations
Series: DEC 2022

AA – May 2020 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

Discuss three factors the auditor must consider before accepting or continuing an audit engagement.

Question

ISA 220 – Quality Control for an Audit of Financial Statements deals with the specific responsibilities of the auditor regarding quality control procedures for an audit of financial statements. It also addresses, where applicable, the responsibilities of the engagement quality control reviewer. According to ISA 220, the auditor should consider certain factors before accepting a new engagement or continuing an existing engagement.

Required:
Discuss THREE (3) of such factors. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Engagement, Audit Standards, Engagement Acceptance, ISA 220, Quality control
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2020

AAA – Nov 2023 – L3 – Q1c – The Audit Approach, Practice Management

Explain five responsibilities of engagement partners for managing and achieving quality on audits as per ISA 220.

Question

You have recently been employed by a small firm of Chartered Accountants “Osei Peprah and Associates”. The firm has been in operations since 1985 and the two main partners, Mr. Osei and Mr. Peprah, are above 70 years old. They are mostly inactive in the main audit work and rely on three audit trainees and one Audit Senior for the performance of the audit engagement for their 30 clients. The three audit trainees were recently employed after their national service with the firm. You are the only qualified accountant besides the partners.

On your first meeting with Mr. Osei, he explained that the firm needs to improve its quality control procedures and audit working papers. He highlighted that the recent audit of the firm’s activities by the Quality Assurance Monitoring department of ICAG revealed several quality control issues as well as non-compliance with ISAs in their audit engagements.

Required: In accordance with ISA 220 (Revised): Quality Management for an Audit of Financial Statements, explain FIVE (5) responsibilities of the engagement partners for managing and achieving quality on audits.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Engagement Partners, ISA 220, Quality control
Level: Level 3

Topic: Practice management, The audit approach
Series: NOV 2023

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)

Answer

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

AAA – May 2024 – L3 – SC – Q6 – Quality Control in Audit Firms

Outline the impacts of poor quality audit services and engagement partner responsibilities under ISA 220.

Question

Required:

Prepare an outline for a paper that will be used to address these practitioners on the following:

a. The consequences and actions that could arise as a result of poor quality professional service delivery.

(3 Marks)

b. The responsibilities of “key quality control matters” placed on the engagement partner in accordance with ISA 220-Quality Control for an Audit of Financial Statements. (12 Marks)

(Total 15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Standards, ISA 220, Professional Compliance, Professional Practice Monitoring Committee, Quality control, Regulatory Sanctions
Level: Level 3

Topic: Quality Control in Audit Firms
Series: MAY 2024

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

Question

Required:
State FIVE (5) reasons for the need for a quality control system in accounting firms.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting, Audit Firms, ISA 220, Quality control, Regulatory Environment
Level: Level 2

Topic: Professional and Ethical Considerations
Series: DEC 2022

AA – May 2020 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

Discuss three factors the auditor must consider before accepting or continuing an audit engagement.

Question

Required:
Discuss THREE (3) of such factors. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Engagement, Audit Standards, Engagement Acceptance, ISA 220, Quality control
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2020

AAA – Nov 2023 – L3 – Q1c – The Audit Approach, Practice Management

Explain five responsibilities of engagement partners for managing and achieving quality on audits as per ISA 220.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Engagement Partners, ISA 220, Quality control
Level: Level 3

Topic: Practice management, The audit approach
Series: NOV 2023

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

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)

Answer

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

Question Tag: ISA 220

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AAA – May 2024 – L3 – SC – Q6 – Quality Control in Audit Firms

Outline the impacts of poor quality audit services and engagement partner responsibilities under ISA 220.

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

AA – May 2020 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

Discuss three factors the auditor must consider before accepting or continuing an audit engagement.

AAA – Nov 2023 – L3 – Q1c – The Audit Approach, Practice Management

Explain five responsibilities of engagement partners for managing and achieving quality on audits as per ISA 220.

AAA – Nov 2017 – L3 – Q2b – Practice Management, Audit Approach

Discuss the role of direction and supervision in ensuring quality control in an audit engagement.

AAA – May 2024 – L3 – SC – Q6 – Quality Control in Audit Firms

Outline the impacts of poor quality audit services and engagement partner responsibilities under ISA 220.

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

AA – May 2020 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

Discuss three factors the auditor must consider before accepting or continuing an audit engagement.

AAA – Nov 2023 – L3 – Q1c – The Audit Approach, Practice Management

Explain five responsibilities of engagement partners for managing and achieving quality on audits as per ISA 220.

AAA – Nov 2017 – L3 – Q2b – Practice Management, Audit Approach

Discuss the role of direction and supervision in ensuring quality control in an audit engagement.

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Question Tag: ISA 220

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AAA – May 2024 – L3 – SC – Q6 – Quality Control in Audit Firms

Outline the impacts of poor quality audit services and engagement partner responsibilities under ISA 220.

You're reporting an error for "AAA – May 2024 – L3 – SC – Q6 – Quality Control in Audit Firms"

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

You're reporting an error for "AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations"

AA – May 2020 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

Discuss three factors the auditor must consider before accepting or continuing an audit engagement.

You're reporting an error for "AA – May 2020 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements"

AAA – Nov 2023 – L3 – Q1c – The Audit Approach, Practice Management

Explain five responsibilities of engagement partners for managing and achieving quality on audits as per ISA 220.

You're reporting an error for "AAA – Nov 2023 – L3 – Q1c – The Audit Approach, Practice Management"

AAA – Nov 2017 – L3 – Q2b – Practice Management, Audit Approach

Discuss the role of direction and supervision in ensuring quality control in an audit engagement.

You're reporting an error for "AAA – Nov 2017 – L3 – Q2b – Practice Management, Audit Approach"

AAA – May 2024 – L3 – SC – Q6 – Quality Control in Audit Firms

Outline the impacts of poor quality audit services and engagement partner responsibilities under ISA 220.

You're reporting an error for "AAA – May 2024 – L3 – SC – Q6 – Quality Control in Audit Firms"

AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations

Explains the need for a quality control system in accounting firms, with reference to the audit of God First Microfinance.

You're reporting an error for "AA – Dec 2022 – L2 – Q1c – Professional and Ethical Considerations"

AA – May 2020 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements

Discuss three factors the auditor must consider before accepting or continuing an audit engagement.

You're reporting an error for "AA – May 2020 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements"

AAA – Nov 2023 – L3 – Q1c – The Audit Approach, Practice Management

Explain five responsibilities of engagement partners for managing and achieving quality on audits as per ISA 220.

You're reporting an error for "AAA – Nov 2023 – L3 – Q1c – The Audit Approach, Practice Management"

AAA – Nov 2017 – L3 – Q2b – Practice Management, Audit Approach

Discuss the role of direction and supervision in ensuring quality control in an audit engagement.

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