ISQC 1 - created from Mind Map

Page 1

Leadership responsibilities

Ethical Requirements- CPC: Safe guards

Acceptance and Continuance of Engagements For NEW and EXISTING Clients

Human Resources

Engagement Performance

Monitoring

Appropriate persons performing the audit

Review and supervision of policies in place

HOW? do we make sure we have proper leadership in place e.g. Code of conduct

Ensure Independence of all employees is maintained

ID circumstances where independence is threatened and implement safeguards ( Document this)

Obtain written confirmation, annually , from employees stating that they are independent

HOW? Independence declaration. If not Independent make sure that employee is not engaged to that client

Firm complies with ISA 220 & 300

Policies should require firm to document

HOW? through Preliminary Engagement Activities

Independence, Integrity, competence etc

ISA 220 par A22 - New clients

what changes occurred in previous financial year ?

how information is obtained , why accept or decline a client, how issues ID'ed have been resolved

Employ personnel with relevant skills, knowledge, competence etc.

Engagement teams assigned adequately by -

HOW? Through an efficient and effective recruitment process

Assigning appropriate audit partner to the engagement where identified and role is communicated to the audit team

Audit partner is announced to the client and rotated every 5 years - Companies Act

Assigning appropriate audit team with relevant skills, competence, experience etc.

Appropriate mix of Engagements Teams i.e. Staff of different levels and Supervision

Senior staff supervise the junior staff that doesn't have that much experience.

Engagement is performed ito relevant requirements

Significant matters are reported appropriately and / or to the client if permitted

HOW? make the correct conclusions and report appropriately

Internal Process

External Process

i.e. Quality assurance department select files to calculate materiality, was the correct methodologies used for the testing, was the correct conclusion reached based on the evidence?

IRBA- SA regulatory board will select files to ensure the correct procedures where followed

Appropriateness of ISQC1 policies - regular review by management ( Partners)