ICAEW.com works better with JavaScript enabled.

Continue reading

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.

Q: Is it better that my firm’s cold file reviews are done by external consultants or is it acceptable to do them internally?

A: This is a common question which does not have a straightforward answer. Cold file reviews (CFRs) should be conducted by a suitably qualified individual with sufficient experience to undertake the review, preferably someone who is independent of the client. ISQC 1 requires the cold file reviewer to be someone who has not been involved in performing any of the work. Additional cold file reviews can, in theory, be conducted by someone involved in the audit work, but they are unlikely to be as effective.