DSR!

Direction

100

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).

200

What meeting is done at the start of the audit to set the stage?

Engagement Team Planning Meeting 

300

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. 

400

Do we need additional direction considerations for utilizing a COE or FOW team?

No! They represent professionals within the USI workforce 

Supervision

100

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.

200

How does API assist the engagement partner in supervision?

API provides weekly snapshots of the audit status

300

What key areas are considered enhanced areas of focus? (There are 3!) 

Inventory, Revenue (Trade Promotion), and Management Override 

400

How does the engagement partner supervise component teams?

Throughout the year, there are virtual planning meetings, periodic touchpoints, and review of workpapers 

Review

100

What is Review?

Review refers to the review of audit documentation prepared by the engagement team.

200

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.

300

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:

1. Were the planned procedures as outlined in the guided risk assessment or other planning documents completed and were the audit objectives accomplished?
2. What were the judgments made by the preparer?
3. Is the form and content of the audit documentation appropriate?

 

400

What is included in the secondary reviewers review? 

• Comparing the planned procedures to the referenced audit documentation and determine whether:
  • The planned procedures were performed and documented in the audit documentation.
  • The planned procedures are appropriate to address the associated RoMMs, especially considering information obtained in other areas of the audit and findings (misstatements and control deficiencies) raised.
  • The objectives of the planned procedures were met based on the testing performed.
• Verifying that documentation is sufficient to demonstrate compliance with the requirements of the professional standards and the Audit Approach Manuals.
• Identifying any possible “red flags” and work to resolve.
• Determine whether the audit documentation demonstrates objectivity and professional skepticism and that the preparer appropriately utilized his/her professional judgment.

Wild Card!

100

Who is ultimately responsible for DSR of the audit?

Engagement Partners

200

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! 

300

How many audit phases are there?

There are 5 phases: 

- Plan 

- Perform 

- Conclude

- Report 

- Pervasive 

400

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