AAA PTP DEC 2020 BY KASHIF KAMRAN-FCCA 30/10/2020

DAY 3 AAA
PRACTICE TO PASS
Ethical, DECEMBER 2020
KASHIF KAMRAN-FCCA
professional
& quality
control issues

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Ethical, professional and quality control matter

Previous webinars to watch

• EPQ issues- (Sept 19)- https://vimeo.com/showcase/6199442/video/352559546
• EPQ issues- (Jun 19)- https://vimeo.com/showcase/5932776/video/333830511
• EPQ issues- (March 19)- https://vimeo.com/showcase/5719988/video/317125736

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Agenda day 3 : Ethical , professional & quality control matters

EXAMINER HOME
ARTICLE DRILLING
EXPECTATIONS ASSIGNMENTS

Exam technique
article- part 1 Sept 2018 Q2b Sept 18
Analysis of
ethics (EP) Q3b(PQ)
examiner dos
and don'ts
Quality control- Jun 2016- Q2a Mar 20
carefully
perpetual (EPQ) Q3b(EP)
current issue

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Examiner expectation- when a question ask for ethical issue

or ethical and professional issues
Comment/Discuss/ explain/ evaluate any ethical issues relevant and recommend
appropriate actions to be taken by our firm.
Evaluate/Comment/ identify and explain the ethical and professional issues and
recommend any actions which should now be taken by the audit firm

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Ethical issues- understanding

• Knowing the code of ethics (IESBA)- the issues

• Conflict of interest+ safeguards
• Confidentiality+ when it can be whistle blown
• Threats to objectivity + safeguards
• Management threat + safeguards
• Listed company and non-listed company
• Explaining why it is a threat

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Professional issues- understanding

• Any specific matter in the case study which is important or need attention,
other than ethical issues.
• The more practice you do the better you will be on professional matters

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Examiner expectation- when a question involve quality control

matters
• Comment on the quality of the planning and performance of the audit of
Watson Co discussing the quality control and other professional issues raised.
• Comment on the quality of the audit performed discussing the quality control,
ethical and other professional issues raised.

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Quality control issues

• Specific matters in examiner article which compromise quality

• Matters mention in ISQC-1/ISA-220- which compromise quality

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Elements of a firm quality control system

Leadership

Ethics

Acceptance and continuation of client relationship

Human resources

Engagement performance

Monitoring

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How the audit is planned and performed?

Planned
 Role of the audit engagement partner
 Planning meeting with client / audit committee
 Engagement team briefing
 First year audit
 Use of analytical procedures
 Risk assessment

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How the audit is planned and performed?

Performed
 Adherence to applicable standards / firm policies
 The person involved
 Sample size
 Adequacy of evidence
 Judgements
 Supervision
 Documentation of work
 Review of work performed (Work)

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Specific matters which compromise quality (examining team

article)
• Tight deadlines
• Materiality level
• Sample size
• Fees restrictions
• Use of judgements
• Competence

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Ethical professional and quality control issues- marking

scheme
• 1 mark per issue ( irrespective of what the issue is)
• 1 mark per action ( if asked for)

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