Immersing in audit

Quality control for an assurance engagement may comprise the following elements: 1.       Characteristics of the engagement partner . 2.       Assignment of the t eam . 3.       Responsibilities of the engagement partner. 4.       Engagement q uality c ontrol r eview . Consider each of the four elements.                             1. Characteristics of the engagement partner.                The e ngagement partner shall: ·   Have competence in assurance skills and techniques developed through extensive training and practical application; and ·    Have sufficient competence in the underlying subject matter and its measurement or evaluation. ·     Be a member of a firm that applies ISQC 1, or other professional requirements                 2.     Assignment of the t eam . Those persons who are to perform the engagement collectively should have the appropriate competence and capabilities to perform the engagement and enable an assurance report to be issued.                  

  Appropriateness of the underlying subject matter in an assurance engagement Underlying subject matter is the phenomenon that is measured or evaluated by applying criteria. An appropriate underlying subject matter is identifiable and capable of consistent measurement or evaluation against the applicable criteria. Different underlying subject matters have different characteristics, including the degree to which information about them is qualitative versus quantitative, objective versus subjective, historical versus prospective, and relates to a point in time or covers a period. Such characteristics affect the: (a)     Precision with which the underlying subject matter can be measured or evaluated against criteria; and (b)       The persuasiveness of available evidence. In some cases, the assurance engagement may relate to only one part of a broader underlying subject matter. For example, the practitioner may be engaged to report on one aspect of an entity’s contribution to

  Understanding the underlying subject matter and other engagement circumstances when performing an assurance engagement In order to understand the underlying subject matter and other engagement circumstances the practitioner shall make inquiries of the appropriate party(ies) regarding: (a)   Whether they have knowledge of any actual, suspected or alleged intentional misstatement or non-compliance with laws and regulations affecting the subject matter information. b) Whether the responsible party has an internal audit function and, if so, make further inquiries to obtain an understanding of the activities and main findings of the internal audit function with respect to the subject matter information; and (c) Whether the responsible party has used any experts in the preparation of the subject matter information Obtaining an understanding of the underlying subject matter and other engagement circumstances helps the practitioner to exercise professional judgment when: ·      Co

  Assurance engagement is an engagement in which a practitioner aims to obtain sufficient appropriate evidence in order to express a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the subject matter information (that is, the outcome of the measurement or evaluation of an underlying subject matter against criteria) . Responsible party is the party(ies) responsible for the underlying subject matter. Intended users are the individual(s) or organization(s), or group(s) thereof that the practitioner expects will use the assurance report.   Assurance engagements could be classified on two dimensions: 1.       Either a reasonable assurance engagement or a limited assurance engagement. 2.       Either an attestation engagement or a direct engagement. Not all engagements performed by practitioners are assurance engagements. Examples of other frequently performed engagements that are not assurance engagements incl