Module 13 Flashcards
1
Q
Without documentation, the auditor cannot demonstrate they have (2)
A
- Obtained sufficient appropriate evidence
- Complied with relevant ISAs and applicable legal and regulatory requirements
2
Q
Documentation must be retained for
A
At least 6 years
3
Q
Instead of using an audit engagement file, some firms use
A
Permanent file
4
Q
Audit engagement file
A
Contains working papers relevant to a particular year’s audit. Should be indexed and cross referenced
5
Q
FRC review of Audit Data Analytics key findings (6)
A
- Usage is overemphasised due to pressure on teams
- Audit quality can be enhanced
- Audit evidence is more focussed
- Small number of tools - better outcome
- Better facilitated by a specialist
- Clear understanding of purpose of the data needed
6
Q
FRC believe key to ADA is
A
Consistent international approach
7
Q
FRC highlights worry regarding ADAs
A
Current ISAs do not provide guidance over the use of audit data analytics
8
Q
External monitoring (4)
A
- ICAS
- FRC’s Professional Oversight Team
- FRC’s Audit Quality Review Team
- FRC’s Conduct Committee
9
Q
Underlying themes for poor quality audit files include (3)
A
- Over-reliance on accounts preparation process
- Specialist audit procedures not utilised in full
- Inadequate approach to FRS 102 audit work
