Auditors can learn a lot from each other’s experiences of first year audits. Geoff Swales canvasses opinion.
Current experience suggests that when auditors take on a new audit, the first year can be challenging, irrespective of its size and complexity. So when the Practical Auditing Discussion Group (PADG) met towards the end of 2017 to discuss potential issues, the list included:
- liaison with predecessor auditors
- gaining an understanding of the entity and internal control
- scoping and performing the audit
- composition of the audit team
With the aid of some polling technology, PADG attendees provided their views on a number of questions posed throughout the session, and these views are referred to belo
A key part of a first year audit is effective liaison with the predecessor auditor. PADG acknowledged that review of the predecessor’s working papers is common, but what about the extent of the review, particularly on a group audit? Views at PADG varied between those who generally limited the review to the group and significant components, and those who reviewed more components. Clearly there is scope for judgement in the extent of review, but what is important is knowing what you want to achieve from the review.
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