Guide to Using International Standards on Auditing in - IFAC

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<strong>Guide</strong> <strong>to</strong> <strong>Using</strong> <strong>International</strong> <strong>Standards</strong> on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts
Exhibit 4.5-1
Keep track of:
Firm’s Risk
Exposure
and Staff’s
Commitment
<strong>to</strong> Quality
Ethics and
Independence
Description
• Client acceptance/continuance assessments.
• Reports from all persons responsible for some aspect of quality. This could
include minutes of committee meetings (i.e., quality control), issues addressed,
or simply that there is nothing <strong>to</strong> report.
• Firm-wide communications on the subject of quality.
• Most recent moni<strong>to</strong>ring report, and the specific action steps required for each
deficiency found or recommendation made (who, what, when, etc.). Also track
dates when action steps are completed and send out reminders when necessary.
• Details of any client or third-party complaints about the firm’s work or the
behavior of the firm’s personnel. Also track how these complaints were
investigated, the results and communication with the complainant, and any
actions taken.
• List of prohibited investments.
• Details on what ethical (including independence) threats were identified, and
the relevant safeguards that have been applied <strong>to</strong> eliminate or at least mitigate
such threats.
Personnel • Offer of employment.
• Evidence of reference checks performed on new employees.
• Actions <strong>to</strong> men<strong>to</strong>r, guide, and train new recruits.
• Copy and date of the annual staff confirmations on independence, and staff
knowledge of the firm’s quality control manual.
• Evidence of staff appraisals, including the date, and any actions resulting such as
attending training, etc.
• Staff scheduling, with comparisons of planned scheduling <strong>to</strong> actual.
• Dates of internal and external training sessions, the <strong>to</strong>pics covered, and the
names of those who attended.
• Details of any disciplinary actions taken.
Engagement
Management
• Dates the team planning meeting was scheduled and when it actually <strong>to</strong>ok
place for all audit engagements.
• What files require engagement quality control reviews, who is assigned, and
the planned date. Then match the plan <strong>to</strong> who actually performed the review;
when it occurred; and any issues raised and their resolution.
• Reasons for any departures from any applicable ISA requirement, and the
alternative audit procedures performed <strong>to</strong> achieve the aim of that requirement.
• Details of consultations with others, and resolution of audit/accounting issues
raised, if any.
• Reasons for engagement delays and how such delays were addressed
and resolved. These could include changes in staff personnel, delays in
obtaining information, unavailability of client staff, scope restrictions, and any
disagreements with client management.
• Dating of the audi<strong>to</strong>r’s report and compliance with the 60-day recommendation
for assembly of final engagement files.
• How moni<strong>to</strong>r’s comments on the file were addressed.