As an auditor you are assigned to carry out the audit of the financial statements of Shine Cleaning Products Ltd for the year ended 31 March, 2019. You discover that two of the audit working files from the preceding year’s audit are missing. The preceding year’s audit was carried out by Ben Smith, who has already left the firm. You are concerned as you do not have much knowledge about cleaning products and this is only the second audit assignment for which you are responsible. You consult your manager and ask to be given more time to complete the audit. Required: (i) Discuss the significance of audit quality control. ASA220 (ISA 220) states that the audit firm should implement quality control policies and procedures at both audit firm level and individual audit level. (ii) Do you think it is adequate just to ask for more time? Why or why not? (iii) If your manager told you to simply follow a standard audit program for the audit, what would you do? Explain in full what your actions would be and why.
(A) As an auditor you are assigned to carry out the audit of the financial statements of Shine Cleaning Products Ltd for the year ended 31 March, 2019. You discover that two of the audit working files from the preceding year’s audit are missing. The preceding year’s audit was carried out by Ben Smith, who has already left the firm. You are concerned as you do not have much knowledge about cleaning products and this is only the second audit assignment for which you are responsible. You consult your manager and ask to be given more time to complete the audit.
Required:
(i) Discuss the significance of audit quality control.
ASA220 (ISA 220) states that the audit firm should implement quality control policies and procedures at both audit firm level and individual audit level.
(ii) Do you think it is adequate just to ask for more time? Why or why not?
(iii) If your manager told you to simply follow a standard audit program for the audit,
what would you do? Explain in full what your actions would be and why.
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