Module 13

Question 1

Without documentation, the auditor cannot demonstrate they have (2)

Answer 1

• Obtained sufficient appropriate evidence

- Complied with relevant ISAs and applicable legal and regulatory requirements

Question 2

Documentation must be retained for

Answer 2

At least 6 years

Question 3

Instead of using an audit engagement file, some firms use

Answer 3

Permanent file

Question 4

Audit engagement file

Answer 4

Contains working papers relevant to a particular year’s audit. Should be indexed and cross referenced

Question 5

FRC review of Audit Data Analytics key findings (6)

Answer 5

• Usage is overemphasised due to pressure on teams
• Audit quality can be enhanced
• Audit evidence is more focussed
• Small number of tools - better outcome
• Better facilitated by a specialist
• Clear understanding of purpose of the data needed

Question 6

FRC believe key to ADA is

Answer 6

Consistent international approach

Question 7

FRC highlights worry regarding ADAs

Answer 7

Current ISAs do not provide guidance over the use of audit data analytics

Question 8

External monitoring (4)

Answer 8

• ICAS
• FRC’s Professional Oversight Team
• FRC’s Audit Quality Review Team
• FRC’s Conduct Committee

Question 9

Underlying themes for poor quality audit files include (3)

Answer 9

• Over-reliance on accounts preparation process
• Specialist audit procedures not utilised in full
• Inadequate approach to FRS 102 audit work