AUE 2601 Assignment 2 SEMESTER 1

AUE 2601 Assignment 2 SEMESTER 1 1. 1.1)Three procedures that Spencer Steward should have performed include the following,  Assess risk attached to each opening balance of account, for example non current assets balance.  Agree prior year closing balances through to current year opening balances  Review predecessors audit work papers or review the work of previous 1.2) Elements of a quality control for firms that perform audits are:  Audit firms must establish policies and procedures for engagement teams to put together finalized engagement files on a timely basis such as setting deadlines, review and sign off files.  Audit firms must establish policies and procedures designed to maintain confidentiality of audit documentation for example , use of passwords to access computerized work papers  Safe custody physical controls over hardcopy and electronic work papers such as physically security over the area.  Integrity accessibility such as sign a register  Control over irretrievability of engagement documentation such as back up routines  Controls over the distribution of work papers such as sign a register 1.3) The following are the requirements of the form and content of audit documentation required by ISA 230,  The auditor should prepare on a timely basis, audit documentation. The audit documentation must provide a sufficient and appropriate record of the basis for the auditor’s report, and evidence that the audit was performed in accordance with International Accounting Standards.  Documenting the nature, timing and extent of audit procedures, the auditor should record the identifying characteristics of the item/matters tested.  Documenting significant matters identified on the audit.  All experienced auditors who do not have previous connection with the audit should be able to understand the nature, timing and extent of audit procedures performed to comply with ISAs  The auditor should prepare on a timely basis, audit documentation that provides a sufficient and appropriate record of the b