Page 19 - Inspection Report 2018
P. 19

Table 1
                          Common findings identified by the AOB during the 2018 inspections (Continued)
                           Common findings                Key concerns / risks           AOB reminders
                           Engagement performance

                           Some audit firms have not      The lack of controls over the   Audit firms are required to implement
                           established control procedures to   assembled audit engagement files   effective controls to safeguard
                           address alterations made to audit   posed the risks that documentation   confidentiality, safe custody and
                           engagement files subsequent to   and audit evidence could be altered,   integrity of audit engagement
                           assembly of final audit files.  added or deleted without the audit   documentation.
                                                          firm’s knowledge.
                                                                                         Stern actions will be taken on audit
                                                                                         firms found to have serious lapses in
                                                                                         this area.
                           Monitoring

                           The operating effectiveness of the   In the absence of a robust monitoring   Audit firms have a duty to ensure
                           system of quality control of certain   process, weaknesses in a firm’s   that its monitoring functions are
                           audit firms was not evaluated due to   system of quality controls could not   adequately staffed and led by a
                           lack of resources. This is a recurring   be identified and rectified on a timely   partner who has the appropriate
                           observation from prior year.   basis.                         experience and authority.

                           Source: AOB




































                                                                                                      AUDIT OVERSIGHT BOARD
                                                                                                ANNUAL INSPECTION REPORT 2018  17






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