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Unformatted text preview: ance with approved Auditing
Standards and Guidelines and such control procedures are consistently adhered to by the
The following six (6) key controls are included in the Questionnaire:
- Audit File Administration
Financial Statements Presentation
Review and Evaluation of System of Internal Controls
Audit Conclusion 169 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants
[Issued January 2007] APPENDICES
- Audit Report
Substantive approach - audit engagements
A substantive approach will be employed if the reviewer chooses not to place reliance on the
member firm’s specific controls on audit engagements or is of the opinion that the standard of
compliance is not satisfactory. This approach requires a detailed review of the audit working
papers in order to establish whether the audit work has been carried out in accordance with
approved Auditing Standards and Guidelines. Such a review is similar to the type of review
performed by the engagement partner/manager during normal audit engagement procedures.
This approach is likely to take longer than the compliance approach.
At the end of the on-site review, the factual findings will be discussed with the designated
partner of the firm being reviewed or the sole practitioner. During the closing meeting, the
designated partner/practitioner has the opportunity to make representations, suggestions and
recommendations in relation to the matters raised. The reviewer has the duty of explaining to
the designated partner/practitioner the advantages and benefits of implementing suggestions
and recommendations for improvements.
The reviewer will prepare a report to the Practice Review Committee (the reviewer’s report),
incorporating the report of factual findings as discussed with the member firm. After review by the
Practice Review Director (or Senior Manager) of the Institute, a dated draft of the reviewer’s report
will be sent to the member firm for comments. This process should not take more than two (2)
months after the closing meeting. Any comments made must be submitted in writing within
twenty-one (21) days. The reviewer will finalise his/her report upon the receipt of the submissions.
In finalising the report, the reviewer may make changes to the dated draft he/she considers
appropriate in light of the submissions. The submissions will be attached (after properly codified) to
the reviewer’s report before it is sent to the Committee for consideration.
The member firm will be allowed the opportunity to make its representations throughout the
review process. It is expected that the on-site closing meeting between the reviewer and the firm
will provide an excellent channel for the communication of views concerning the findings and
recommendations. In addition, the member firm has twenty-one (21) days to consider the dated
draft report and make its formal submissions and representations to th...
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- Fall '13