Achieving Audit Quality & Compliance with Peer

Transcript:Achieving Audit Quality & Compliance with Peer:
Achieving Audit Quality & Compliance with Peer Review M S Mathew Achieving Audit Quality Important conversations are taking place worldwide about corporate reporting, audit quality, stakeholder expectations, and corporate governance. The stakeholders of audit have increased in the past few decades.. Today’s stakeholders include directors, management, employees, analysts, regulators, rating agencies, customers, suppliers, and the general public. General public – the expectations of general public has also increased tremendously. Their expectation of auditor’s responsibility is much wider So much so, anything going wrong in the corporate world becomes the baby of the auditor Therefore, the contemporary auditor not only has to maintain a high level of quality in audit, but has to demonstrate it to the stakeholders and the public at large. M.S.Mathew F C A Achieving Audit Quality Today’s Topic Pronouncements of Auditing & Assurance Standards Board Audit Quality Standards on Quality Control (SQC 1) Risk based audit Documentation Benchmarking - Peer Review and Audit Quality Matrix Model M.S.Mathew F C A Various Pronouncements of Auditing and Assurance Standards Board Our profession as an auditor is regulated by the various pronouncements of the AASB, issued under the authority of the Institute Various pronouncements are: Standards Issued by AASB M Standards on Auditing (SAs) – 26 standards Standards on Review Engagements (SREs) Standards on Assurance Engagements (SAEs) Standards on Related Services (SRSs) Standards on Quality Control (SQC) M Statements on Auditing (SAs) M General Clarifications M Guidance notes Technical Guides, Practice Manuals, Studies and other Papers M.S.Mathew F C A Structure of Standards issued by the Auditing and Assurance Standards Board (AASB) Frame work for quality control in all kinds of engagements Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements Standards on Quality Control (SQC1) Framework for Assurance Services Audits and Reviews of historical financial information Standards on Auditing (SAs): 100 – 999 Standards on Review Engagements (SREs): 2000 – 2699 Assurance engagements other than audits and reviews of historical financial information Standards on Assurance Engagements (SAEs): 3000 – 3699 Framework for Related Services Engagements of related services such as agreed upon procedures, compilation engagements and other related services Standards on Related Services (SRSs): 4000 – 4699 An overview of Auditing & Assurance Frame work M.S.Mathew F C A Benchmarking of Audit Quality M.S.Mathew F C A Benchmarking of Audit Quality In the past, audit was just a