Wednesday, May 6, 2020
Auditing & Assurance Quality Review Focus Area
Question: Discuss about theAuditing Assurancefor Quality Review Focus Area. Answer: Introduction Analytical evaluation of the article published on the ASIC and the Quality Review Focus Area reveals significant areas of audit performance. Besides this, the process of quality review helps in divulging the important issues that need to be recognized by means of the Australian Quality review program along with the consideration of the primary areas of audit quality recognized by the Australian Securities as well as Investment Commission (William Jr et al. 2016). Thus, this helps in maintenance of surveillance, scrutiny as well as enforcement of proper financial reporting as well as auditing requirements of the Corporation Act. As per teams viewpoint, the key audit areas along with the key issues presented in a structured manner can help in recognizing important information (Basu 2016). This in turn can assist in comprehending as well as applying specific requirements of audit. Moving further, the current segment also critically examines the importance of audit areas selected by ASIC and the importance of the emphasized areas for maintenance of quality of audit. From the standpoint of the team, it can be hereby mentioned that the presentation of the focus areas can help the auditors in providing suitable systems as well as procedures. However, this in turn can permit them to conduct independent as well as superior quality audit (Knechel and Salterio 2016). According to the team, the key audit area of investigating the procedure of documentation in addition to evidences is obligatory for focusing on the entire substance of the work. As such, this too helps in checking whether there are sufficient audit evidence on particularly the engagement file for supporting the conclusive results related to key decisions as well as important judgements of the auditor (Knechel and Salterio 2016). Audit of professional scepticism can help the auditors in checking the probable material misstatements in the financial declarations owing to fraudulent actions. Again, dependence on other auditors is another area that needs to be reviewed as it is important to consider the competence as well as expertise of the other auditors reviewing the work before relying on them. Furthermore, as per the viewpoint of the team, it is justified to assess the internal control as this assists in designing appropriate procedures for delivering feasible assurance as regards a ttainment of functional objectives, namely, the effectuality as well as efficiency of business functions (Basu 2016). As per the viewpoints of the team, the mention of the audit areas such as comprehending business models, financial reporting along with supervision in addition to review can help in maintaining compliance with the quality of audit as well as auditors independence obligations. Again, the accountabilities of the auditor can be related to the fraudulent activities in an audit. References William Jr, M., Glover, S. and Prawitt, D., 2016. Auditing and assurance services: A systematic approach. McGraw-Hill Education. Basu, S.K., 2016. Auditing Assurance. Pearson Education India. Knechel, W.R. and Salterio, S.E., 2016. Auditing: assurance and risk. Routledge.