The Firm has a procedure of communicating with all audit personnel
- Audit issues that arose when a specific audit report was being drafted and non compliances were detected
- Process deficiencies that were observed when monthly returns were being prepared
- Amendments in Acts & Rules that impact daily audit review and conduct of the audit
- Tax assessments which bring out shortfalls in audit review and non compliances
- Issues observed during a specific audit assignment that have a bearing on other Audit clients
- Amending SOP when non compliance is identified as a result of SOP deficiency
- Issues addressed by the Client in the conduct of Audit
- Observations of the Partner who reviewed the Audit reports
- Immediately asking the Audit manager to attend to any major error in accounting observed during review
- Sharing guidelines and check lists issued by the ICAI for the conduct of Audit
- Sharing common observation of the ICAI Audit Oversight Board in deficiencies noted in reporting by Audit Firms
- Sharing Fraud occurrences so that sufficient checks can be built into the audit process to identify similar transactions during the course of the audit
Any/all complaints and allegations of noncompliance with the firm’s system of quality control (which do not include those that are clearly frivolous) may originate from within or outside the firm. , They may be made by Firm personnel, clients, boards of accountancy, other regulators, or other third parties. They may be received by engagement team members or other firm personnel.
- The complaint and allegation are immediately addressed
- The process in the concerned audit is reviewed
- If it involves a specific Partner or Audit team ,then the individual is called and asked to clarify the allegation
The Policies and procedures established by the Firm for the investigation of complaints and allegations include
EMPANELMENT
- Documenting the procedure followed in applying for fresh audit engagements
COMMUNICATION
- Ensuring that the Firm communicates with the previous auditor and secures a NOC ,for accepting the audit engagement
TENDER BIDDING
- Ensuring that the Firm only bids where there is a Tender and that minimum professional fees recommended by ICAI are adhered to
- Retaining the Tender documents and work notes in supporting the Tender bid
ADVERTISEMENT
- By ensuring that the Firm’s web site, visiting cards, correspondence, letter heads, envelopes ,signage do not include any Content specifically prohibited by the ICAI
INDEBTEDNESS
- By declaring for each audit assignment that there is no conflict of interests, that the Firm is not indebted, that the firm possesses the necessary experience and skills and that the Firm would not outsource the assignment
EXPERIENCE & SKILL
- The firm has sufficient and appropriate experience to carry out the professional assignment
- That the Partner applying for the audit engagement has authority within the firm
CONFLICT OF INTEREST
- That the Firm is not otherwise involved with the Client in any other engagement., that would imply conflict of interest
DOCUMENTATION
- A audit engagement letter has been secured from the Client
- Scope of audit is defined
- A management letter has been received from the Client
- Process and systems have been examined
- Sample drawn for verification of the audit is on record
- Audit working papers are on record
- Audit plan and schedule is documented
- Audit observations and Client communication is on record
- Draft report and Partner review is documented
OPINION
- A clear and concise opinion has been expressed on the audit
- If fraud was detected ,then the report expressly declares that the audit was not for detecting fraud, but that fraud was detected when the audit observations were being reviewed
- If the Firm came across system and process non compliances, then how did the Audit ensure that due diligence was followed to ensure that the material discrepancy were addressed
- The documentation supports the professional competence
- The documentation records the evidence and observations
An audit completion certificate is on record