Ensuring that management of audited entities understands the need to provide support for the audit process. Increasing the use of, and reliance on, internal control reviews. Re-evaluating decisions made in previous audits and regularly bringing fresh minds to bear. Ensuring appropriate use and reliance on other auditors in the context of group audits (particularly in connection with business components in emerging markets), interests in joint ventures, and the use of service organisations. This work can include assessing the other auditors and reviewing their audit work. Ensuring appropriate systems and monitoring processes relating to audit independence, as well as training, guidance and support in considering possible threats to independence. Reviewing the processes in place to ensure that advice given to non-audit clients on accounting treatments is appropriate. Inappropriate accounting advice may place pressure on the external auditor to accept an inappropriate treatment. Ensuring that where audited entities grow, there is not a mismatch between the audited entity and the size or professional capacity of the auditor and the breadth of audit team experience. Involving the whole engagement team in sessions with management of audited entities to obtain a better understanding of the business of the audited entity. © Australian Securities and Investments Commission December 2015
REPORT 461: Audit inspection program report for 2014–15 Page 71 Key terms Term Meaning in this document AASB 136 (for example) An accounting standard (in this example numbered 136) accounting standards Standards issued by the Australian Accounting Standards Board under s334 of the Corporations Act ASA 200 (for example) An auditing standard (in this example numbered 200) ASIC Australian Securities and Investments Commission ASQC 1 Auditing Standard ASQC 1 Quality control for firms that perform audits and reviews of financial reports and other financial information, other assurance engagements and related services engagements AUASB Auditing and Assurance Standards Board auditing standards Standards issued by the AUASB under s336 of the Corporations Act CA ANZ Chartered Accountants Australia and New Zealand CALDB Company Auditors and Liquidators Disciplinary Board CGU Cash generating unit Corporations Act Corporations Act 2001 , including regulations made for the purposes of that Act CPAB Canadian Public Accountability Board engagement quality control review A process designed to provide an objective evaluation, before the auditor’s report is issued, of the significant judgements the engagement team made and the conclusions they reached in formulating the auditor’s report EQCR Engagement quality control reviewer firm An audit firm inspected by ASIC as part of the audit inspection program IAASB International Auditing and Assurance Standards Board IESBA International Ethics Standards Board for Accountants IFIAR International Forum of Independent Audit Regulators INFO 203 (for example) An ASIC information sheet (in this example numbered 203) IOSCO International Organization of Securities Commissions © Australian Securities and Investments Commission December 2015
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