Turn weaknesses into strengths
Audit & Beyond speaks to QAD reviewer Nick Reynolds, who considers some of the issues that arise on audit monitoring visits.
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 a reprimand by the Disciplinary Committee or regulatory penalties offered by the Audit Registration Committee (see the box on page 13).
According to Nick Reynolds, who has been a QAD reviewer for more than seven years, in many cases the issues that lead to regulatory penalties should be avoidable. "You need to know what the audit regulations require" says Reynolds. You may think he is stating the obvious, but these penalties can arise from matters other than weaknesses in audit work, for example misleading information provided in annual returns, ineligibility for audit registration, and audit reports which have been signed by someone who is not the responsible individual (RI).
This is an extract from an article in the March 2015 edition of Audit & Beyond, the magazine of the Audit and Assurance Faculty.
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