ASSURANCE IN FINANCIAL AUDITING Table of contents_part11 pptx

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Appendix 5D
INDIVIDUAL FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL
FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL

Name of
Reviewer
Signature Date
Financial year QAQ reference
Reviewing object name
Name of audit
manager/ Director
Signature Date
Conducting Financial audit phase
(circle please)
Planning/ Conducting/ Reporting
WP No WP ref No
Observation:
Insert the observation here

Cause
Effects:
Write down impact of observation
Feedback from the Audit manager/ Audit director
Insert the feedback here


Recommendation
Insert recommendation

INDIVIDUAL FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL
Write the reason of observation including the sub element reference

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FINDING RECORDING FORM AT THE FINANCIAL AUDIT LEVEL

Name of
Reviewer
Himanshu Signature Date 31.10.2008
Financial year 2007 QAQ reference C1
Reviewing object name Agency of secondary education
Name of audit
manager/ Director
Gautam Signature Date 01.11.2008
Conducting Financial audit phase
(circle please)
Planning/ Conducting/ Reporting
WP No RW08-1 WP ref No R – 3
Observation:
INTOSAI Standards paragraph 3.1.3 (k), International Auditing standards 300 paragraph 2, 8
& 9 and International Standards of Supreme Audit Institution 1300 require working papers
to include a planning memorandum.

Although the SAI methodology requires the preparation of planning memorandum, there was
no planning memorandum on file. There was no indication that a plan was prepared before
the execution of the audit.

Cause
Effects:
Objectives of the audits may not be achieved due to lack of planning and this may result in
wastage of resources.
Feedback from the Audit manager/ Audit director
The observation is noted and we make all the necessary effort to prepare audit plans and
place them on file.

Recommendation
The SAI should develop an operational plan that considers all resource requirements and
allocates sufficient resources to enable audit teams to conduct their audits efficiently and
effectively. Adherence to the operational needs should be monitored by the supervisors.

During the period under review the SAI was under pressure to meet the statutory deadline
and teams were going out for audits without preparing audit plans and there was no proper
supervision. Last year the report was produced six weeks after the deadline.
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Appendix 5E
QUALITY ASSURANCE REVIEW RECORDING FORM (QARRF)

1. TERMS OF REFERENCE

A. Positive observation

Summary of the Key Positive Aspects from the Review


B. Areas for improvement

QAQ
reference
Observation Causal
Factors
Sub-
element
Effects Recommendations Audit manager/
Audit director
Comments







2. PLANNING
A. Positive observation

Summary of the Key Positive Aspects from the Review

B. Areas for improvement
QAQ
reference
Observation Causal
Factors
Sub-
element
Effects Recommendations Audit manager/
Audit director
Comments






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3. EXECUTION PHASE
A. Positive observation

Summary of the Key Positive Aspects from the Review


B. Areas for improvement

QAQ
reference
Observation Causal
Factors
Sub-
element
Effects Recommendations Audit manager/
Audit director
Comments







4. REPORTING PHASE
A. Positive observation

Summary of the Key Positive Aspects from the Review


B. Areas for improvement

QAQ
reference
Observation Causal
Factors
Sub-

element
Effects Recommendations Audit manager/
Audit director
Comments








Signed by …………………… Date …………….
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Appendix 5F
SAMPLE: QUALITY ASSURANCE REVIEW RECORDING FORM

Appendix 5F
SAMPLE: QUALITY ASSURANCE REVIEW RECORDING FORM


1. TERMS OF REFERENCE

A. Positive observation

Copy of audit engagement letter was attached in audit file and it confirmed the auditor’s

acceptance of the appointment, the objective and scope of the audit, the extent of the auditor’s
responsibilities to the client and the form of reports.

B. Areas for improvement

QAQ
reference
Observation Causal Factors
Sub-element
Effects Recommendations Audit manager/
Audit director
Comments
A1
There are no
documents
demonstrating
compliance
with Code of
Ethics and
assessment of
the audit team
competency.
Office does not
have specific
policy to assess
the competency
of staff before
assigning the
audit
engagement and

system of
evaluating the
compliance of
Code of Ethics.
No any guidance
was given in this
regard.

Internal
Governance
The audit
management
did not know
whether they
had assigned
competent
team to the
audit.


The SAI
needs to establish the
policy of objective
assessment of the
competency of the
available manpower
in the Directorate
before assigning
audit. There should be
proper documentation

of competency
assessment and
competency. SAI
should create a roster
of its manpower
considering the
expertise based on
each sector and nature
of audit. The
assessment and
monitoring policy
needs to be
formulated
recognizing the
requirement of the
Code of Conduct.

The policy of
objective
assessment of the
competency of the
available manpower
within the
respective
Directorate will be
formulated

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2. PLANNING
A. Positive observation

Materiality logically determined and well documented according to the IAS.


B. Areas for improvement

QAQ
reference
Observation Causal Factors
Sub-element
Effects Recommendations Audit
manager/
Audit
director
Comments
C.1 There was no
planning
memorandum
on file. There
was no
indication that
a plan was
prepared

before the
execution of
the audit.
During the
period under
review the SAI
was under
pressure to meet
the statutory
deadline and
teams were
going out for
audits without
preparing audit
plans and there
was no proper
supervision. Last
year the report
was produced
six weeks after
the deadline.

Internal
governance
Objectives of
the audits
may not be
achieved due
to lack of
planning and

this may
result in
wastage of
resources.
INTOSAI Standards
paragraph 3.1.3 (k) and
International Auditing
standards 300 paragraph 2,
8 & 9 and International
Standards of Supreme
Audit Institution 1300
require working papers to
include a planning
memorandum. It would be
good for the SAI to come
with a proper operational
plan that will cater for all
resource requirements and
enable audit teams to
conduct their audits
efficiently and effectively.
Adherence to the
operational needs should
be monitored by the
supervisors.
The
observation is
noted and we
make all the
necessary

effort to
prepare audit
plans and
place them on
file.


H.5 The risk
assessment did
not evaluate
the
significance of
the risks
identified and
the audit
procedures did
not clearly
respond to the
risks identified.
There is no
manual or
technical
guidance related
to risk
assessment.

Audit
methodology
and
standard

(Manual and
Guidance)
The audit
programs
might lead to
ineffective
audit
execution.
SAI should prepare
manual for the
implementation of the risk
assessment concept of
guideline. Process, toolkit
and checklist for risk
assessment need to be
defined in the manual;

SAI has felt
the necessity
of developing
manual, format
and toolkit for
risk and
internal
control
assessment.
Due to
resources
constraint SAI
has yet to

develop such
document.
D-6 Audit
procedures in
audit program
appear to be
inadequate to
attain the audit
The audit
programs were
not updated in
case additional
or alternative
audit procedures
The audit
procedures
may not attain
the audit
objectives.
As audit progresses,
changes due to additional
audit procedures should be
reflected in the audit
program
The audit team
leader will
ensure that
such changes
are fully
demonstrated

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objective. were undertaken
during and upon
completion of
the audit.

Audit
Methodology
(Tools)

Human
Resource
(Training)
in the future.

Signed by …………………… Date …………….


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Appendix 5G
Sample Template of draft report

FINANCIAL AUDIT REVIEW REPORT
TABLE OF CONTENTS
INTRODUCTION ……………………………………………………………………………. 1
APPROACH AND METHODOLOGY …………………………………………………… 1
OBSERVATIONS ……………………………………………………………………………. 1
1. Terms of reference …………………………………………………………………. 1
2. Planning ……………………………………………………………………………….1
3. Execution …………………………………………………………………………… 1
4. Reporting ……………………………………………………………………… 1
5. General
Overall conclusion
Management response

INTRODUCTION
Please insert the background information

APPROACH AND METHODOLOGY
Please insert the main data gathering techniques

Limitations, if any, of the approach

OBSERVATIONS
1. Terms of reference
Positive observation
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Areas for improvement
Observation:

Effects:

Casual factors sub elements:

Recommendation:



2. Planning
Positive observation

Areas for improvement
Observation:

Effects:

Casual factors sub elements:

Recommendation:
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3. Execution
Positive observation

Areas for improvement
Observation:

Effects:

Casual factors sub elements:

Recommendation:

4. Reporting
Positive observation

Areas for improvement
Observation:

Effects:

Casual factors sub elements:

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Recommendation:

5. General
Positive observation

Areas for improvement
Observation:

Effects:

Casual factors sub elements:

Recommendation:

OVERALL CONCLUSION



MANAGEMENT RESPONSE



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