Our audit is performed in accordance with the International Standards on Auditing. Those standards require that we comply ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor team’s judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
In addition to enabling us to familiarize ourselves with our client’s affairs, such a review will assist us to carry out a more effective and efficient audit for the current period, enabling us to:
This document is of prime importance in that it is evidence of our own planning and we therefore complete this section carefully for all audits and accounts preparation assignments.
The following points are relevant to the completion of the Planning and Control Record:
Internal planning meeting:
Engagement letters are needed for:
The following procedures are to be followed in cases of difficulty in obtaining a client’s signature to a letter of engagement.
Peer reviews are carried out on a comprehensive random sample of completed jobs plus jobs in progress for audit and accounts. Detailed reports on findings are made to the audit partner for remedial action and follow up as necessary.
‘Hot Reviews” Apply to:
We deal with a full agenda on legal/professional developments plus development of internal standards and procedures:
Briefing and debriefing meetings are held. Audit (and other assignments) are subject to planning/supervision and review procedures at all levels.
These are held all year round as necessary.
We adopt a systematic approach to materiality and sample determination. Guidance is provided on audit approach based on size/complexity criteria. Standard forms are in use for audit and accounting routines. Checklists are used for file review purposes.
There exists a system where the firm audit reports are checked for the quality and competence of its work. In appropriate circumstances the partners can recommend that the firm be disqualified from undertaking audit work. This is an additional reason for staff to maintain the high professional standards set down by the firm in the course of carrying out their duties.