Quality Management at the Engagement Level Proposed ISA 220 (Revised)

Slides:

Advertisements

Similar presentations

Page 1 | Proprietary and Copyrighted Information Group Audits – Letterbox Audit Considerations Megan Zietsman, ISA 600 Working Group Chair IAASB Meeting.

Advertisements

IAASB CAG Meeting, April 8-9, 2013 Supplement to Agenda B

Office of the Auditor General of Canada CANADA’S ADOPTION OF INTERNATIONAL STANDARDS ON AUDITING 20 FACTS PREPARERS of FINANCIAL STATEMENTS SHOULD KNOW.

ISA Implementation Support Module Prepared by IAASB Staff October 2010 Materiality, Misstatements and Reporting − Part II.

Clarified ISAs ISA Groups

International Ethics Standards Board for Accountants Internal Audit Bob Franchini Paris June

SAFA- IFAC Regional SMP Forum

ISA 220 – Quality Control for Audits of Historical Financial Information

Learning Objectives LO1 Describe the association framework. LO2 Determine whether a PA is associated with financial statements. LO3 Describe the three.

Auditing & Assurance Services, 6e

Learning Objectives LO1 Describe the role of professional judgment in achieving the overall objectives of the independent auditor in conducting an audit.

International Auditing and Assurance Standards Board The Clarified ISAs, Audit Documentation, and SME Audit Considerations ISA Implementation Support Module.

International Auditing and Assurance Standards Board The Clarified ISAs, Audit Documentation, and SME Audit Considerations ISA Implementation Support Module.

Harmonization project The long and winding road to level 3…

Auditing Sept. 24, Audit Standards Page 38.

1 Internal Audit. 2 Definition Is an independent activity established by management to examine and evaluate the organization’s risk management processes.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] © Pearson Education Limited 2007 Slide 4.1 An Auditor’s.

Harmonization Project FAS Meeting Harmonization project and ISSAI 200 Purpose and scope of the project The purpose is to provide a conceptual basis.

Page 1 | Confidential and Proprietary Information REVISION of IES 4 Saleem Kharwa.

Page 1 | Proprietary and Copyrighted Information Safeguards Gary Hannaford, Task Force Chair IESBA Meeting New York, USA September 15, 2015.

Page 1 | Confidential and Proprietary Information Definition of Engagement Team New York, December 2012.

Page 1 | Proprietary and Copyrighted Information Structure of the Code Don Thomson, Task Force Chair IESBA Meeting New York, USA September 15-16, 2015.

February 2010 – Task Force finalized draft for discussion with IAASB and IAASB CAG in March 2010 IAASB expected to approve draft for public exposure in.

IAASB –February 2010 – Task Force finalized draft for discussion with IAASB and IAASB CAG in March 2010 –June approval of exposure draft IESBA –Closely.

Page 1 | Proprietary and Copyrighted Information Safeguards Gary Hannaford, Task Force Chair IESBA CAG Meeting New York, USA September 14, 2015.

Page 1 | Confidential and Proprietary Information Responding to Suspected Illegal Acts Robert Franchini New York, September 2013.

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 20-1 Chapter Twenty Assurance, Related Services and Internal.

ICAJ/PAB - Improving Compliance with International Standards on Auditing Planning an audit of financial statements 19 July 2014.

P7:Advanced Audit & Assurance (INT). 2 Section F: Reporting Designed to give you knowledge and application of: F1. Auditor’s reports F2. Reports to those.

Page 1 | Proprietary and Copyrighted Information Safeguards Gary Hannaford, Task Force Chair IESBA Meeting New York, USA June 29 – July 1, 2015.

International Federation of Accountants ISA 610 Use of the Work of Internal Auditors New York, NY October 17-19, 2011.

Page 1 | Proprietary and Copyrighted Information Professional Skepticism Richard Fleck, IESBA Deputy Chair Tone Sakshaug, IESBA Technical Advisor IESBA.

Structure of the Code Phases 1 and 2 Revised Texts

Auditing & Investigations II

Assurance, Related Services and Internal Auditing

The ISSAIs for Financial Audit ISSAIs

Structure of the Code Don Thomson, Task Force Chair IESBA Meeting

How to Communicate Assurance?

Review of Part C of the Code – Applicability

Professional Skepticism and Professional Judgment

Professional Skepticism and Professional Judgment

ISA 315 (Revised) Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment Fiona Campbell, ISA.

ISA 540 (Revised) Rich Sharko, IAASB Member and Chair of the ISA 540 Task Force Marek Grabowski, IAASB Member and Co-Chair of the ISA 540 Task Force June.

Proposed ISRS 4400 (Revised)

The Ten Generally Accepted Auditing Standards

Quality Management at the Engagement Level Proposed ISA 220 (Revised)

Megan Zietsman, Task Force Chair IAASB Meeting, New York, USA

IAASB-IESBA Coordination

Quality Management (Firm Level)

Don Thomson, Task Force Chair IESBA Meeting New York July 7-9, 2014

Structure of the Code Phase 2

Proposed ISQC 1 (Revised)

ISA 610 Using the Work of Internal Audit

EER Assurance December 2018

Alignment of Part 4B with ISAE 3000

Fiona Campbell, Chair of ISA 315 Task Force

Inducements Mike Ashley – IESBA Member and Task Force Chair

Proposed ISQM 2 Imran Vanker, EQ Review Task Force Chair

Structure of the Code Don Thomson, Task Force Chair IESBA CAG Meeting

Quality Management at the Engagement Level Proposed ISA 220 (Revised)

Audit Evidence Bob Dohrer, Technology Working Group Chair and Audit Evidence Working Group Chair IAASB CAG Meeting, New York Agenda Item D March 5, 2019.

Alignment of Part 4B with ISAE 3000

Alignment of Part 4B with ISAE 3000

IESBA Meeting Nashville June 17-19, 2019

Lyn Provost, IAASB Member and Task Force Chair IAASB Meeting

IAASB – IESBA Coordination Fees Proposals by IESBA

Technology Bob Dohrer, Technology Working Group Chair

Audit Evidence Bob Dohrer, Audit Evidence Working Group Chair

Fiona Campbell, ISA 315 Task Force Chair & Deputy Chair of the IAASB

Fiona Campbell, ISA 315 Task Force Chair & Deputy Chair of the IAASB

Presentation transcript:

Quality Management at the Engagement Level Proposed ISA 220 (Revised) Megan Zietsman, Task Force Chair IAASB Meeting, New York, USA Agenda Item 4 September 21, 2018

Issue 1: ISA 220 Objective The objective of the auditor is to manage quality at the engagement level to obtain reasonable assurance that quality has been achieved, such in that: (a) The auditor has fulfilled the auditor’s responsibilities, and has conducted the audit [in the public interest], in accordance with and has achieved the objectives of, applicable professional standards and applicable legal and regulatory requirements; and (aa) In doing so, the significant judgments made and conclusions reached by the auditor are appropriate, given the nature and circumstances of the engagement; and (b) The auditor’s report issued is appropriate in the circumstances.

Issue 2: Use of “Sufficiently and Appropriately” Involved TF Recommendation: Option 1: “sufficiently and appropriately involved” …In doing so, the engagement partner shall be sufficiently and appropriately involved throughout the audit engagement to provide the basis for the engagement partner to determine whether the significant judgments made and the conclusions reached are appropriate given the nature and circumstances of the engagement.

Issue 2: Use of “Sufficiently and Appropriately” Involved Pros These are easily understood terms in the English language These terms are used throughout the ISAs (e.g., proposed ISA 315 Revised) The definition of these terms in the glossary are in the context of audit evidence; it is clear that this definition does not apply to the use of the terms under different contexts Clarifies that the involvement of the EP flexes The loss of the “bar” created by the use of the terms “sufficiently and appropriately” may lead to bad behavior; EPs may feel that they meet the requirement by being superficially involved Cons Some think that “sufficient appropriate” are only defined in the context of audit evidence and therefore using the terms here would pull in related requirements for ISA 500 (e.g., relevance and reliability Sky to add the actual references in 315 for Megan notes

Issue 2: Use of “Sufficiently and Appropriately” Involved Other Options Considered by the Task Force Option 2: Appropriate only Option 3: Delete the phrase completely Option 4: Nature, timing and extent

Issue 2: Use of “Sufficiently and Appropriately” Involved Option 2: Appropriate only …In doing so, the engagement partner shall be appropriately involved throughout the audit engagement to provide the basis for the engagement partner to determine whether the significant judgments made and the conclusions reached are appropriate given the nature and circumstances of the engagement. With application material to indicate that “appropriately” in this context involves an element of sufficiency. Pros: Solves the “significant appropriate” problem The “bar” is implicit in the language, “such that the engagement has the basis for…” Cons: The bar is implicit, rather than explicit

Issue 2: Use of “Sufficiently and Appropriately” Involved Option 3: Delete the phrase completely …In doing so, the engagement partner shall be involved throughout the audit engagement to provide the basis for the engagement partner to determine whether the significant judgments made and the conclusions reached are appropriate given the nature and circumstances of the engagement. Pros: Solves the “significant appropriate” problem The “bar” is implicit in the language, “such that the engagement has the basis for…” Cons: The bar is implicit, rather than explicit

Issue 2: Use of “Sufficiently and Appropriately” Involved Option 4: Nature, timing and extent …In doing so, the nature timing and extent of involvement of the engagement partner throughout the audit engagement shall provide a basis for the engagement partner to determine whether the significant judgments made and the conclusions reached are appropriate given the nature and circumstances of the engagement. Pros: Solves the “significant appropriate” problem Clarifies that the involvement of the EP flexes The “bar” is implicit in the language, “such that the engagement has the basis for…” Cons: The bar is implicit, rather than explicit Some may feel that “nature timing and extent” apply only in the context of procedures