You are the partner responsible for quality control in Suta Excellence, A well-known audit firm. You are reviewing the findings from a recent post-issuance (cold) review performed by your firm’s compliance department. The following were identified on a number of audits: 1. A review of working papers found that some working papers had not been signed off by the team member that had completed the work. Some working papers were not dated, and some did not have a signature confirming they had not been reviewed. 2. A mandatory procedure included in the audit plan which required a written representation letter to be obtained, had not been completed. A comment had been added by the audit manager stating that there were no issues requiring a written representation from management. 3. An audit test over purchases required a sample of 60 invoices to be tested. 54 had been tested and found to be recorded accurately and completely. Six (6) invoices could not be found. No further invoices were identified for testing and a conclusion was drawn based on the 54 items tested. 4. The audit of a material provision was performed by the audit junior as the audit manager was too busy finishing off work for the previous client on which they had been working. 5. The planning section of the file has not been completed. The audit procedures performed were copied over from the previous year’s file and the same approach and sample sizes have been used to conduct this year’s audit. You are required to: Describe the quality control issues arising from each of the findings.
You are the partner responsible for quality control in Suta Excellence, A well-known audit firm. You are reviewing the findings from a recent post-issuance (cold) review performed by your firm’s compliance department. The following were identified on a number of audits:
1. A review of working papers found that some working papers had not been signed off by the team member that had completed the work. Some working papers were not dated, and some did not have a signature confirming they had not been reviewed.
2. A mandatory procedure included in the audit plan which required a written representation letter to be obtained, had not been completed. A comment had been added by the audit manager stating that there were no issues requiring a written representation from management.
3. An audit test over purchases required a sample of 60 invoices to be tested. 54 had been tested and found to be recorded accurately and completely. Six (6) invoices could not be found. No further invoices were identified for testing and a conclusion was drawn based on the 54 items tested.
4. The audit of a material provision was performed by the audit junior as the audit manager was too busy finishing off work for the previous client on which they had been working.
5. The planning section of the file has not been completed. The
You are required to:
Describe the quality control issues arising from each of the findings.
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