AA Flashcards
Reasonable Assurance
High level
Positive opinion
eg Audit of financial info
Limited Assurance
Moderate level
Negative
eg Review of financial info
The future of audit reports
The Kingman Review - Brings new Audit, Reporting and Governance Authority
Competition and market authority review
Brydon Report - recommendations
Current Issues to consider
Climate change
Sustainability (IFRS S1 ans IFRS S2)
Technology (AI, Big Data, Blockchain, RPA)
Data analytics
Restoring Trust in audit and corporate governance
White paper published in 2021.
Agreed with Kingman and Brydon - audit reform
More powers for ARGA
audit market competition. new reporting requirements
Auditors can be appointed by Directors …
- to fill a casual vacancy or
- first appointment of auditors
Auditors can be appointed by the members…
- Shareholders appoint by passing ord resolution in general meeting >50% vote
- Must make appointment within 28 days after latest date of FS, or existing auditor is deemed to be reappointed
Auditors can be appointed by the Secretary of state…
rare
where no auditor has been appointed by time audit is required
Removal/resignation of auditor
CA 2006
Duty of outgoing - prepare and submit statement of circumstances to companies registered office.
Rights of outgoing - prepare written representations to be circulated to the members of the company. Receive notice of, attend and speak at (extraordinary) general meeting where appointment is to be considered (which can be called as short notice for resignation)
- stricter for listed companies (cannot say there are no circumstances
In AA - Sustainability impacts…
Risk management
Assurance
Law and regulation
Biases which subconsciously impact logical and objective reasoning
6
Automation bias
Availability bias
Confirmation bias
Groupthink
Overconfidence
Anchoring Bias
Auditor should look for…
5
Related party transactions
Bribery
SOX act (US based)
Money Laundering
Fraud and Error
