Chapter 2

Question 1

Define harmonisation

Answer 1

Harmonisation is the process of aligning global auditing standards so they can be compared regardless of location.

Question 2

Define a PIE

Answer 2

PIEs are public interest entities, shareholders are not the only entities interested in large PLCs, the public are also interested. PIEs are large PLCs that have at least 750 employees and an annual turnover of 750M. i.e a bank or a financial insitution.

Question 3

How has big, complex data affected the work of auditors?

Answer 3

development of technology means auditors have to process large amounts of complex info. Therefore, the IAASB have set objectives to respond to the disruptive nature of technology. Create support systems and build processes so the auditors can successfully use the new technologies. Keep up with tech trends so that the work can remain relevant, and update shareholders on tech info to improve quality.

Question 4

why does the Brydon report assess?

Answer 4

the quality and effectiveness of an audit