Review compliance to avoid litigation
i. Using the background and permanent information for the Audit Firm, document the answers to the following questions:
- Does the firm’s policy for hiring staff include measures to ensure competent staff are employed?
- How does the firm ensure staff have sufficient training in terms of their audit skills as well as ethical requirements?
- How does the firm ensure audit risks regarding staff allocation to audits are addressed?
- How does the firm ensure compliance with auditing regulations on each audit?
ii. Select the information you feel is relevant to include as permanent information in the electronic workpapers. Record it in the workpaper where permanent information can be kept.
iii. Draw a conclusion as to whether sufficient measures are in place to ensure the Audit Firm avoids litigation in terms of policies to address competence of staff, compliance with ethical requirements and compliance with auditing standards.
Permanent File Information: