Chapter 4 Flashcards
how should a firm reinforce ethical requirements
through the leadership of the firm ( culture)
education and training (HR)
monitoring
a process for dealing with non compliance
when should an audit firm accept or continue to audit a client
when it has the time and resource to do so
when it can comply with ethical requirements
when they believe the client has integrity
what 6 things do audit need to appropriate HR for ( personnel issues)
recruitment
performance evaluation
capabilities and competence
career development
promotion
compensation
estimation of personnel needs
what are appropriate control procedures to ensure the firms staff have the necessary capabilities
professional qualifications
a system to continuous training and development
work experience
what matters when considering assigning personnel to a particular audit
understanding of the clients industry
understanding of standards
technical knowledge and expertise
what does the firm need to do in regards to engagement performance
establish policies and procedures to provide it with reasonable assurance that engagements are performance in accordance with standard
what matters should be addressed in the guidance materials for engagement performance
how teams are briefed processed for complying with standards process of supervision and training methods of reviewing appropriate documentation of the work performed and time spent on review processes to keep guidance up to date
what must the engagement process include (2)
supervision
review
what must guidance on consultation include
appropriate consultation takes place
sufficient resource available for consultation to happen
nature and scope of consultations are documented
who is eligible to review
someone who is objective and with sufficient skills
what documentation of a review is required
document to show the review has happened before audit report has been signed and there was no unresolved issues
what is the purpose of monitoring compliance
to have reasonable assurance the audit has adhered to professional standards and legal requirements
whether the QCR is effective
