What is Direction?
Direction generally refers to the process of informing the engagement team members of their responsibilities (resulting in the “directing” of their actions).
What is Supervision?
Supervision relates to the oversight of the engagement team members on the part of the Engagement Partner or others empowered to do so.
What is Review?
Review refers to the review of audit documentation prepared by the engagement team.
Who is ultimately responsible for DSR of the audit?
Engagement Partners
What meeting is done at the start of the audit to set the stage?
Engagement Team Planning Meeting
How does API assist the engagement partner in supervision?
API provides weekly snapshots of the audit status
How is the EQR involved in the review process?
Engagement leadership meets with the Engagement Quality Reviewer (EQR) to discuss overall audit status, changes, etc. prior to sending working papers for review.
Where do we have in our file considerations regarding DSR for component teams and specialists?
Group Audit workspace for component teams
Use of Auditor Specialist workspace for specialists
*Anytime we use a specialist, we must have considerations for our DSR procedures!
Who assists the engagement partner in direction?
Managers and Senior Managers
Note - Weekly leadership meetings are held with managers and above to discuss status, issues, challenges, and progress of the audit.
What key areas are considered enhanced areas of focus? (There are 3!)
Inventory, Revenue (Trade Promotion), and Management Override
What are the 3 broad areas a detailed review focuses on?
There are three broad areas that the detailed reviewer typically focuses on when performing their review:
How many audit phases are there?
There are 5 phases:
- Plan
- Perform
- Conclude
- Report
- Pervasive
Do we need additional direction considerations for utilizing a COE or FOW team?
No! They represent professionals within the USI workforce
How does the engagement partner supervise component teams?
Throughout the year, there are virtual planning meetings, periodic touchpoints, and review of workpapers
What is included in the secondary reviewers review?
What is the general process followed for directing and supervising at the focused level (hint - there are 5!)
1. Assign Preparer
2. Discuss Plan and Communicate Expectations
3. Confirm Understanding of the Plan
4. Monitor Progress
5. Audit documentation ready for review