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Practically “the auditors” includes all members of the audit team on a particular assignment. The person who takes overall responsibility for the auditors report is known as the engagement partner. He or She may delegate certain aspects of the audit work to other persons but the overall responsibility for the performance of the audit is the engagement partner’s alone. THE TYPICAL COMPOSITION OF AN AUDIT Engagement Partner
Audit Junior The official bodies of professional accountants in the UK are: ACCA ICAEW ICAS ICAR CIMA CIPFA
The above bodies are the members of the consultative Committee of Accountancy Bodies known as the CCAB. The 1 st four bodies have one thing in common; they are recognized by the Companies Acts for the purpose of the qualification to be a company auditor. An RSB (Recognized Supervisory body) is a professional body recognized by the Department of Trade and Industry under the Companies Act 1989 as competent to establish audit regulations to which registered auditors are subject. Firms granted registration are entitled to record such status on their writing paper and letterhead. (“The Auditing Today” Emile Woolf, 6th Edition)
Audit and Internal Review “Individual” Assignment (Paper 2.6) The University of Brighton (Muhammad Arshad Khan, Student Ref.: 02823797)
These rules are for registered auditors cover various matters including: Eligibility & registration Conduct of regulated audit work Fit and proper status Maintenance of competence Monitoring compliance with the audit regulations The objective of the institute in issuing these audit regulations are to make sure that: Auditors registered with the institute maintain high standard of work. ICAS and ICAI have jointly published Audit Regulations and Guidance. membership of the Institute of Chartered Accountants in New Zealand). ACCA membership) or an approved overseas qualification (e. (“Student Manual of Auditing” by Diane Walters & John Dunn. objectivity and independence Technical standards Audit and Internal Review “Individual” Assignment (Paper 2. The reputation of registered auditors with the public is maintained.g.THE REGULATION OF AUDITORS: ICAEW. The regulations apply to all sizes of firm.6) The University of Brighton (Muhammad Arshad Khan.: 02823797) 2 . The application of the regulations is fair but firm. CONDUCT OF REGULATED AUDIT WORK: There are two main elements: Integrity. 6th edition) ELIGIBILITY: A person who is eligible to carry out audits under UK law is anyone who is on the register of auditors maintained by an RSB. Such a person should hold an approved UK qualification (e. The regulations are clear.g. REGISTRATION: The RSB must require its member to pass examination in order to obtain the necessary professional qualifications as a prerequisite for Registered Auditor status. Student Ref.
FIT AND PROPER STATUS: RSBs must setup and maintain monitoring arrangements in order to ensure that the persons on the Register of Auditors are fit and proper and possess the necessary degree of competence. These persons inspect the audit documentation and report on standards are inadequate. MAINTENANCE OF COMPETENCE: Maintenance of competence consist of four sections: Recruitment Technical training and updating On-the-job training and professional development Information technology Audit and Internal Review “Individual” Assignment (Paper 2. Technical standards: The Audit Regulations and Guidance require a registered auditor to comply with statements of Auditing standards (SASs).: Following an accepted audit methodology Programs of training and professional development for the staff Ensuring that staff are fit and proper persons and are suitably independent. to ensure that these are controlled by qualified persons and that their independence from outside influences is assured. This is achieved by the systems of practice regulation that requires the following: An annual return setting out details of practice administration. The enforcement of a system of Practice Regulations is carried out by visits made by inspectors from the joint monitoring unit (JMU).Integrity. audit registration can be withdrawn.: 02823797) 3 . A requirement for professional indemnity insurance with approved insurers Maintaining quality control of audit work viz.6) The University of Brighton (Muhammad Arshad Khan. objectivity and independence: The auditors regulation include requirements for control of firms designed. Quality assurance inspections assists the registered auditors in complying with standards. in conformity with the Companies Act 1989. Student Ref. The guidance which follows indicates area of risk arising from various situations and relationships in which a member’s independence as auditor and hence is objectivity may be threatened.
Student Manual of Auditing. Thomas Learning Publishing Ltd. Diane. ♦ ACCA Study Text (2002).(Total Words: 623) BIBLIOGRAPHY (“Student Manual of Auditing” by Diane Walters & John Dunn. Sixth Edition. Auditing Today. ♦ Woolf. Foulk Lyncks Publishing Ltd.6) The University of Brighton (Muhammad Arshad Khan. 6th edition) ♦ Walters. Sixth Edition. Prentice Hall Europe Publishing Ltd. Student Ref.: 02823797) 4 . Emile. (1997). Audit and Internal Review “Individual” Assignment (Paper 2.(2000).