Articles written by practitioners and ICAEW staff in the area of Quality Control.
A quality discussion
Audit quality is the subject of debate around the world and among the volunteers who support the Audit & Assurance Faculty.
Under the skin
All audit firms may learn from the FRC’s response to the new extended audit reports. Katharine Bagshaw outlines its findings.
Under the microscope
What do reports from the world’s audit regulators say about the auditors they regulate? Katharine Bagshaw looks beyond the obvious.
- From weaknesses into strengths
All audit firms can learn from the experiences of others. Being aware of some of the key issues for auditors that arise during visits by ICAEW's Quality Assurance Department (QAD) provides pointers for improvement and an opportunity to address weaknesses before they become the sort of problem that can lead to disciplinary procedures.
Focus on relevance
There is a common misconception that improving audit quality costs money without any improvement to efficiency, and auditors can only become more profitable by cutting costs. However, with appropriate investment in audit, quality can drive efficiency as this article sets out.
Even the smallest audit firm might sometimes need an engagement quality control review as this article reports.
Good, better, best
Auditors are always striving to improve the quality of their audits. There is always room for improvement and this article looks at steps to take to lift the quality of audits from good to better, or better to best.
From perception to perfection
Since the financial crisis, the audit profession role as a monitor has been brought into question and, in the public’s view, some of the value of its professionalism has been lost. Changing public perception is no easy task, as auditors down the generations have learnt. This article sets out the discussions at ICAEW’s Audit Quality Forum in June 2012 where the challenges of communication and auditor reporting were high on the agenda.
Making audit pay
There is a parallel between quality audit and profitable audits. Budgeting, planning, procedures and training can all have a positive effect on these under the clarified ISAs. This article sets out the how.
First line of defence
Reasons for a review of completed engagement (or cold file review)] range from regulatory requirements, through higher-risk jobs, to pre-planning for the next year, but they can also help audit firms identify where they can improve efficiency. You can access a Review of Completed Engagement (Cold Review)] Helpsheet for further assistance which you can find in the Helpsheets listing below.
ISQC 1 and UK Audit Regulations
Cold file reviews should go beyond basic compliance to identify areas for improving the quality and efficiency of audit. But compliance with ISQC1 and UK Audit Regulations can create confusion for some firms, as the following questions highlight.
The heat is on
So what is the difference between a Pre-completion review of the audit (hot file review) and an engagement quality control review (EQCR)? Are Pre-completion review of the audit and second partner reviews the same? When, and also why, should a formal consultation be conducted? This article seeks to answer these and other questions affecting reviews on audit quality.
As economic challenges increase pressure on audit fees, it is becoming more important to demonstrate value for money to clients. This article sets out how to achieve this.
Reframing audit quality
This article explores the benefits and challenges of putting reliability at the heart of auditing in seeking to raise the bar on audit quality.
The great debate
Discussion article on what we mean by audit quality and how this might be achieved through an appropriate framework.