Audit AssistantWhy a new standard? A wide range of stakeholders use Agreed-Upon Procedure (AUP) reports for various reasons. The demand for AUP engagements continues to grow, particularly with the need for increased accountability around funding and grants. In addition, regulation changes have also driven increased demand for AUP engagements, especially from smaller entities, as increased audit […]
Read moreWhy there is a need for yet another quality standard? PES 4 supports PES 3 in that it specifically addresses the Engagement Quality Reviewer; their appointment, eligibility, responsibilities, and documentation. PES 4 (the NZ version of ISQM 2) aims to strengthen the requirements for engagements that should be subject to an engagement quality review by […]
Read moreThe IAASB has now issued its proposed standard on less complex entities (ED-ISA for LCE) for feedback. A standard around LCE’s is long overdue, and their proposal comes with the hope of easing unnecessary requirements placed on auditors. The standard is expected to come into effect around 2023/2024 and should be a game-changer for the […]
Read moreISA 220 (revised) deals primarily with the engagement partners’ responsibilities in overseeing the quality of the assurance work. It forms part of the suite of Quality Management Standards, dovetailing with PES 3 Quality Management for Firms that Perform Audits or Reviews of Financial Statements or Other Assurance or Related Services Engagements (aka ISQM 1) and […]
Read moreI have spoken to a couple of users lately regarding potential fishhooks related to the audit of the COVID 19 wage subsidies paid out by the Ministry of Social Development (MSD). What is our responsibility as auditors? Do we just accept that if the subsidy was received it was legitimate? What if we find that […]
Read morePES 3 is the King of the Assurance Quality Standards. It is the NZ equivalent to International Standard on Quality Management 1 (ISQM 1). Its full royal title is ‘Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements’. PES 3 and its lesser nobility of […]
Read moreWhat are the main components of PES 3 (aka ISQM 1), and how are they organised and integrated? PES 3 uses a new approach to managing quality that is scalable to deal with differences in firms’ size and nature of their services. As discussed previously, the new quality management approach drives firms to think about […]
Read moreAudit Quality Management The current environment is challenging for assurance practitioners. With staff shortages that may not go away any time soon, lean is the key word when going forward. We need to pay as much attention to the systems, processes and controls within our practice as we do when we are auditing clients. The […]
Read moreFollowing on from the IAASB discussion paper on the audit of Less Complex Entities (that we have previously discussed), the IAASB recently released some good news – a new single standard is being developed for these entities. The IAASB Glossary defines these as entities which typically possesses qualitative characteristics such as: a. Concentration of ownership […]
Read moreOur current Australia specific content includes: AULCEA Special Purpose – Charity: For audits of Smaller Charities (Less Complex Entities), referencing ASAs – for Australian entities preparing financial statements in terms of Australian Charities and Not-for-Profits Commission Act 2012. AULCEA Special Purpose – Company: For audits of Smaller Companies (Less Complex Entities), referencing ASAs – for […]
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