STOP PRESS!
AUDIT QUALITY
"The FRC has just announced in their latest 3-year strategy that they want only 10% of audits covered by AQRT to be 'not up to standard'. It might surprise you to know that it's currently 30%! You may want to take a closer look at your auditors in your next external audit effectiveness review".

Audit Committee training


Audit Review undertake specific training projects for Audit Committees helping them understand the role of the Auditor, the Audit process and the impacts of Governance change.

Our training has recently evolved to meet the increasing responsibilities of Audit Committees as a result of

  • changes to the UK Corporate Governance Code
  • changes to disclosures in the audit report 
  • new responsibilities handed to audit committees‎ by the recent Competition Commission investigation into the UK audit market and the new EU audit regulation

It is aimed at enabling the Audit Committee to

  • conduct a detailed review of the audit
  • tender the audit
  • challenge the audit report and be satisfied with the justifications put forward by the auditor

All our training is tailored for individual Audit Committees.

Responding to the new Guidance on Audit Committees

Responding to the new audit report disclosures

Responding to the new Guidance on Audit Committees

The new Guidance more firmly places elements like fee negotiation and tendering of external audit under the Audit Committee's control. Our bespoke training will enable audit committees to meet these obligations

Enabling the Audit Committee to conduct a detailed review

  • how to obtain the evidence which the Audit Committee will need to assist in discharging their obligations under paragraph 4.35 of the Guidance that: 'at the end of the annual audit cycle, the Audit Committee should assess the effectiveness of the audit process'
  • understanding the component parts of the audit and how time and costs are allocated
  • appreciate how audit firms work with their local partnerships on an international audit
  • the importance of recovery rates
  • facilitating management response and evaluating feedback to ensure there is an effective working relationship and the audit is efficient
  • understanding common areas where audits become inefficient or ineffective
  • how to gain assurance that the audit fee is appropriate

Enabling the Audit Committee to tender the audit

  • involving all stakeholders
  • setting objectives
  • long-listing
  • running a fair and objective tender process
  • typical timings and key events
  • typical critical judgement factors
  • short-listing and presentation evaluation

Audit Review also provide a complete independent and objective service to conduct reviews and tenders of external audits using our proven processes. In this way we support Audit Committees with the independent resources and expertise they need to discharge their duties.

reviews | tenders

Responding to the new audit report disclosures

The FRC's revision to ISA 700 requires audit committees to have a good working knowledge of the audit process and, in particular, the following three areas

  • a description of the risks of material misstatement that were identified by the auditor and which had the greatest effect on
    - the overall audit strategy
    - the allocation of resources in the audit
    - directing the efforts of the engagement team 
  • an explanation of how the auditor applied the concept of materiality in planning and performing the audit
  • a summary of the audit scope, including an explanation of how the scope was responsive to the assessed risks of material misstatement and the auditor’s application of the concept of materiality, as disclosed in the auditor’s report.

Enabling the Audit Committee to challenge the audit report and be satisfied with the justifications put forward by the auditor

  • background to ISA 700
  • the audit process
  • risk identification
  • setting materiality levels
  • shareholder engagement
  • peer group comparison

For more detail on the new ISA700 and our commentary download our technical note

CONTACT US to discuss your specific training needs and how Audit Review can assist