Block 2 - Quality Management Flashcards
1
Q
Quality control
A
2
Q
Proactive leadership
A
3
Q
Compliance checklist
A
4
Q
Firm varieties
A
5
Q
Benchmark
A
6
Q
Public trust
A
7
Q
Flexible approach
A
8
Q
Policies for firms
A
9
Q
Big firms, complex, more resources, QM becomes complex
A
10
Q
ISQM 1: Audit and Reviews of Financial Statements
A
11
Q
ISQM 2: Engagement Quality Review
A
12
Q
Reviewer
A
As a control
13
Q
System of quality management
A
14
Q
Eight components
A
15
Q
Devise, implement, revise
A
16
Q
Firm risk assessment process
A
17
Q
Identify and mitigate risk to ensure quality
A
18
Q
Process
A
19
Q
Tailor
A
20
Q
Firm’s size and complexity
A
21
Q
Partners sit down
A
22
Q
Process of audit
A
23
Q
Each stage has quality management implemented
A
24
Q
Competent, well trained individuals
A
25
Process of audit
26
Quality objectives
27
Detection risk reduced
28
Credibility is high
29
Detection risk is high (identity and mitigate)
Accept bad client, not good planning, delegate wrongly, not identify risks well, now review papers
30
Junior
31
Risky, complex areas
32
Governance and leadership
33
Tone of the top
34
Group auditors intimidation
35
Compromise opinion
36
Rewards commitment to skepticism rather then income generation
37
Ethical requirements
38
Own policies beyond IESBA
39
Acceptance
First time
40
Continuance
Years later
41
Client relationship
42
Assess client integrity
43
Client screening
44
Firms financial and operational priorities
45
Inappropriate judgements
46
Resources not there
Client should not accept, and not accept just because of money
47
Existing business relationships
48
New year
49
New identity checks
Start of new engagements
50
Evaluate conflicts of interest and reassess competence
51
Engagement performance
52
Issues - lack of direction, supervision, junior doing complex work
53
Team responsibility understanding to gather sufficient, appropriate evidence
What is responsibility and how to do it
54
Less experienced
55
Supervised and reviewed
Given guidance, checks and balances
56
Supervised and reviewed
Given guidance, checks and balances
57
Engagement partner appropriately involved in engagement
Planning, involvement in acceptance, review, finalization
58
Not doing fieldwork
59
Manager updates on issues and problems, consults engagement partner regularly, critical areas especially
Completion, communication with audit committees, discussing issues
60
Partner signs report
61
Partner signs report
62
Professional scepticism and judgement - proper review and supervision.
63
Time panic rush
Reduce procedures, reduce sample = raise detection risk and quality management will be compromised
64
Inadequate supervision
65
Teams consult on difficult issues raised by enagement quality reviewer
66
Brought to attention by
67
Management and team difference of opinion
Management aggression and not give enough information - resolve issues because it will affect audit opinion.
68
Perform opinion so rightly issued
69
Resources
70
Assignment of tram
71
Appropriate resources
72
Timely manner
73
Competence
74
Tailored Training
75
Capabilities
76
Up to date
77
Criticize
78
Consequences
79
Complex nature
80
Senior members of the
81
Experts
E.g. fair value
82
Information and communication
Obtaining, generating, using information
83
Consultations between team and manager, team and previous auditor, etc.
84
Other components operate
85
Consultations
86
Knowledge of the business
87
Communication policies, procedures, money laundering breach, NOCLAR breach
88
Within team, partners, audit committee, TCWG, regulator, group and component auditor
89
Timely, to implement right thing
90
Documented
91
Criticise
92
Firm communicates: firm policies on ethics, trading materials for ethics manuals, declaration by every team member that no conflicts of interest, register evidence of training (attendance register and topic)
93
Communication documentation
Client acceptance, risk assessment documentation, client identity documents, engagement letter issued, audit programmed procedures, role assignments and delegation, client information obtained from working papers and digital automated tools, conclusions, reports to management and TCWG on audit issues.
94
Monitoring
95
Whether quality management policies are followed and whether system works rightly
96
Monitoring and remediation
97
Effectiveness and identify deficiencies
98
Communicate and rectify in timely manner
99
Engagement quality reviewer
100
Lower detection risk to publish credible and right audit report.
101
Competence equals better judgements
102
Negative implications/repercussions
103
Public interest is greater then self-interest
104
Public interest is greater then self-interest
