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Audit and assurance > Controls > Flashcards

Flashcards in Controls Deck (2)
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1
Q

What general recommendations can you give to management when a procedure isn’t being adhered to properly?

A
  • employees to be made aware of the importance of adhering to company policy
  • monitoring of procedures to ensure adherence
  • breaches to be investigated and staff disciplined
2
Q

In a first year, new industry client, what should you do to mitigate risk?

A
  • exercise higher professional scepticism
  • use or recruit senior staff with industry experience
  • spend time researching the industry
  • exercise closer supervision over junior staff
  • perform expanded reviews of audit work
  • obtain more relevant and reliable audit evidence by placing more emphasis on third party evidence
  • lower materiality
  • increase sample sizes
  • review previous auditors work
  • undertake substantive procedures on opening balances