1.

Human Resource
a. High staff turnover, leading to a shortage of experienced auditors.
 The Deloitte Philippines have a high staff turnover, leading to a
shortage of experienced auditor, to resolve this problem the
company must have to deals with PSQC 1 under the human
resources. The Deloitte Philippines they must offer competitive
compensation to their employee so that they can enhance
employee satisfaction and retention. They can conduct a survey to
those remaining employee why they are quitting to the company, if
ever the problem is the salary, the company may increase it.

b. Difficulty in attracting and retaining top talent.

 The Deloitte Philippines must retain competent personnel that can
emphasizes the need to provide adequate training and continuing
professional development opportunities to ensure that personnel
have the necessary knowledge and skills to perform their roles
effectively. They can also implement an employee training plan,
where this can help to develop their skills and advance their
careers with in the company.

c. Insufficient skills and knowledge among junior audit staff.

 The Deloitte Philippines can provide adequate training to the junior
auditor, this can help to develop their new skills and advance their
careers within the company. They can also have a mentoring
program where the senior staff teach or help the junior to improve
his/her skills and learning in the audit and also to gain more
experience,

2. Acceptance and Continuance of Client Relationships and Specific Engagements

a. Difficulty in managing client relationships and ensuring engagement
continuance.
 The Deloitte Philippines must stablish a regular communication to
their clients, this can help to understand their needs, expectation
and concerns. It can also help them to identify potential issues early
on and to address them proactively. They can also have an
effective client relationship management where this involves setting
up a strong costumer relationship management structure and
process within the organization and training team of Deloitte
Philippines to follow that structure and process. It can help the
Deloitte Philippines to foster and grow client relationship.

b. Inconsistent client communication leading to misunderstandings and

misrepresentation by client.
  The Deloitte Philippines must have an effective communication, thit
involves setting up a strong communication structure and process
within the organization with this they can’t lead to misunderstanding
and misrepresentation to the client. They must align the goals with
those of the clients and ensure that the working towards a common
purpose. Also, they can differentiate yourself from the competitors
and build a reputation for quality and reliability.

3. Relevant Ethical Requirements

a. Ethical considerations were not consistently integrated into the audit
process.
 The Deloitte Philippines may establish a strong ethical culture
where this involves setting up a strong ethical culture within
the organization. Also, have a regular training on ethical
consideration, this can help to ensure that all auditors are
aware of the importance of ethical considerations in the audit
process and know how to identify and address ethical issues.
The Deloitte Philippines may have a clear policies and
procedure so that it can be easily to understand.

b. Firm policies were outdated and did not fully align with current ethical
requirements.
 The Deloitte Philippines may identify the gaps, where they conduct
a thorough review of the existing policies and identify the areas
where they fall short of current ethical requirements. They must
update the polices based on the gap identified, update the policies
to ensure that they are in line with current ethical requirements.
They must communicate the changes once the updated policies are
in place to all employees and stakeholders; this can be done
through training or they must email them. Then monitor the
compliance and review and update to ensure that they remain
relevant and aligned with current ethical requirements.

4. Leadership Responsibilities for Quality within the Firm

a. The leadership team did not fully embrace their responsibilities for
maintaining audit quality.
 Maintaining audit quality is crucial for the success of any
organization. The Deloitte Philippines can identify the root of cause,
in this they must conduct a thorough review of current audit process
and identify the areas where the leadership team is not fulfilling
their responsibilities. Communicating is the importance once the
root cause has been identified, to maintaining audit quality to the
leadership team. They must provide support to the leadership team
 to help them to fulfill their responsibilities. Hold the leadership team
accountable for maintaining audit quality.

b. Lack of a strong quality culture within the firm.

 A strong quality culture is essential for the success of any
organizations. The Deloitte Philippines may define what is their
purpose to they company so that they may have a clear idea what
are they doing. They must build trust among employees by being
transparent and honest. Being honest and transparent can be help
to improve the quality of your work.

5. Engagement Performance
a. Past audit engagements revealed deficiencies in risk assessment,
documentation, and evidence.
 The Deloitte Philippines may conduct a thorough risk assessment
where they identify the risks that could affect the organization an to
assess their likelihood and potential impact. Documenting the
internal control procedure can help to identify gaps and
weaknesses in the processes. They can also ask feedback from
the stakeholders such as customers, employees and suppliers.
Where this can help to identify areas where you need to improve
your processes or documentation.

b. Risk assessment procedures were outdated and ineffective.

 If the risk assessment procedure were outdated and ineffective the
Deloitte Philippines can conduct a thorough review of the risk
assessment procedures so that they can identify the areas where
the procedures are outdated and ineffective, this will help to
prioritize the efforts and allocates resources effectively. They must
update the risk assessment procedure once they identified the
areas where they need to improve, they must also train the staff on
the updated risk assessment procedure and how to implement
theme effective.
6. Monitoring
a. The firm lacked an effective system for monitoring audit quality.
 Deloitte Philippines have lacked an effective system for monitoring
audit quality to avoid this they may conduct a regular quality control
review where these reviews can help to identify deficiencies in the
audit quality. They must train the staff as necessary on quality
control procedure so that they ensure that the staff is trained on the
importance of quality control.

b. Inadequate internal control over the audit process.

 Inadequate internal control over the audit process can lead to
significant financial risk. To address this issue, it is important to
 identify internal control deficiencies as part of the audit and
assurance process this may include the conduct a thorough risk
assessment; they can document and analyze internal control
procedures; train staff as necessary; conduct regular audits and
lastly, they must listen to the feedback of stakeholders

Adhering to quality control standards such as PSQC 1 is essential in maintaining the

quality and integrity of external audits. PSQC 1 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. It provides guidance on how to establish
and maintain a system of quality control for firms that perform audits and reviews of
financial statements, and other assurance and related services engagements.

Quality control standards are designed to ensure that auditors follow a consistent set of
procedures when conducting an audit. Adhering to quality control standards also helps
to ensure that the auditor is able to identify and address any deficiencies in internal
controls over financial reporting, which can help to prevent fraud and other financial
irregularities 3.

In addition, adhering to quality control standards such as PSQC 1 can help to improve
the overall quality of the audit process by ensuring that auditors are properly trained,
that they have access to the necessary resources, and that they are able to work
effectively as a team 456. This can help to reduce the risk of errors or omissions in the
audit process, which can help to improve the accuracy and reliability of the financial
statements.