quality control + audit evidence

ISQC 1 is not an examinable document in June 2016 P7

“is quality review by a quality control reviewer/engagement partner and this ISQC 1 stuff compulsory if ur client is a listed company ?”

This is section 1 of the ISQC 1 document

“This International Standard on Quality Control (ISQC) deals with a firm’s responsibilities for its system of quality control for audits and reviews of financial statements, and other assurance and related services engagements.”

I see no reason to suggest that an international standard on quality control should not be applicable to all firms carrying an audit registration certificate and, if that’s right, then your question is redundant

“- the training cost hv been capitalised in the cost of new machinery

they expect us to find evidence for a entry which is incorrectly recorded…….what points can I Write for this??”

There should be evidence on file of a memorandum record of the conversation that may have taken place between the audit senior in charge and the CFO of the client bringing to the CFO’s attention the incorrect treatment of the training costs

There should be a schedule “Notes for Partner” setting out all the salient points and the thoughts of the audit senior herself

There should be a copy of the client’s schedule showing the calculation of the training costs

There should be a schedule of the calculation of the effect on the depreciation expense, cost of sales, gross and net profit, tangible non-current assets

There should be a schedule showing calculations of the materiality of the adjustments necessary

There should be some evidence confirming that training did, in fact, take place

There should be details of which personnel attended, where the training took place, whether hotel expenses were involved

There should be copies of the certificates issued by the training company

There should be a copy of the contract between the client and the training company

(How many marks is this for?)

You’re kidding me, right!

Just 3 marks!