The Firm has established policies and procedures designed to maintain the confidentiality, safe custody, integrity, accessibility, and irretrievability of engagement documentation, for a period is sufficient to meet the needs of the Firm, professional standards, laws, and regulations.
The Firm has specified the extent of documentation to be provided for the result of consultation in those areas and specialized situations where consultation is required.
The Firm has advised personnel as to the extent of documentation to be prepared and the responsibility for its preparation.
The Firm has indicated where consultation documentation is to be maintained.
Maintain subject files containing the results of consultations for reference and research purposes`
Assistants to whom work is delegated need appropriate direction. Direction involves informing assistants of their responsibilities and the objectives of the procedures they are to perform. It also involves informing them of matters, such as the nature of the entity’s business and possible accounting or auditing problems that may affect the nature, timing and extent of audit procedures with which they are involved.
Various means of directing assistants are utilized, for example, an audit programme and oral briefings during the course of the audit are used as tools for the communication of audit directions. Time budgets and the overall audit plan are also explained and are helpful in communicating audit directions
Supervision is closely related to both direction and reviews and involves elements of both.
Monitor the progress of the audit to consider whether:
- Assistants have the necessary skills and competence to carry out their assigned tasks;
- Assistants understand the audit directions; and
- The work is being carried out in accordance with the overall audit plan and the audit programmer;
- Become informed of and address significant accounting and auditing questions raised during the audit, by assessing their significance and modifying the overall audit plan and the audit programme as appropriate; and
- Resolve any differences qf professional judgment between personal and consider the level of consultation that is appropriate.
Tracking the progress of the engagement
Considering the competence and capabilities of individual members of the engagement team, whether they have sufficient time to carry out their work, whether they understand their instructions, and whether the work is being carried out in accordance with the planned approach to the engagement
Addressing significant findings and issues arising during the engagement, considering their significance, and modifying the planned approach appropriately
Identifying matters for consultation or consideration by more experienced engagement team members during the engagement
The firm should document the policies and procedures to provide evidence of the operation of each element of its SQC in hard copy or electronic or otherwise in a manner to make available the documentation to all personnel of the firm.
The Firm has prepared appropriate documentation to demonstrate compliance with its policies and procedures related to undertaking engagements that meet professional, regulatory and legal requirements. The form and content of such documentation is a matter of judgment and depends on a number of factors, such as the size of the Client, the number of offices, the degree of authority allowed its personnel and its offices, the nature and complexity of the firm’s practice, its organization, and appropriate cost-benefit considerations.
- Engagement: The requirements are discussed with Client prior to acceptance of the engagement
- Client related processes: client specific and implied requirements are determined and these requirements are reviewed prior to commitment to providing the same. Adequate customer communications exist regarding compliance with professional, regulatory and legal requirements
- Communication: All related Audit team members are communicated the Industry or Service specific documentation for compliance with professional, regulatory and legal requirements
- Providing client service: the audit firm performs the service to the client under controlled conditions including appropriate information, work instructions where required to ensure compliance with professional, regulatory and legal requirements
- Also the property of the client like original documents, other related information is filed to support compliance with professional, regulatory and legal requirements
- All Auditors, and assistants with supervisory responsibilities, are assigned check list to ensure compliance with professional, regulatory and legal requirements