Questionnaire on each audit work implemented by auditor on the. Contractual ...
Are the working documents of auditor controlled and does this control provide.
ANNEXES CONTROL QUESTIONNAIRES ON QUALITY CONTROL OF AUDIT SERVICE
I. QUESTIONNAIRE "A" II.QUESTIONNAIRE “B” III.QUESTIONNAIRE “C” IV.QUESTIONNAIRE “Ç”
General information on auditor
V. QUESTIONNAIRE “D”
Summary
Information on Auditor's financial and economic activity Questionnaire on each audit work implemented by auditor on the Contractual commitment Evaluation indicators of each audit work implemented by auditor on the Contractual commitment
Inspectors on quality control: Head of inspection group: Inspector: Date of control From “___”__________ till Type of inspection: Planned , unplanned Assessment:
___________ ___________ “___”__________
QUESTIONNAIRE "A" Information on auditor __________________________________________________________ Date, number and registration number of license that gives the right to act as auditor _ “__”____200 _ year, №_________, №_____________________ 1. Auditor: • International Corporate (IC) • Limited Liability Company (LLC) • Other • Independent auditor 2. Composition of members (number / %): • Licensed Auditor (who has an auditor license) • The person who has obtained qualification outside the country (ACCA, CPA and so on) • Other persons 3. Head of organization • Licensed auditor • The person who has obtained qualification outside the country • Other 4. Composition of the Board of Directors (if any) (number /%): • Licensed auditor • Other
/ / /
/ /
5. Insurance • Name of insurer ______________________________________________ • Number of insurance certificate ________ and its date “__”____________ 200__ year • Period of Insurance from “__”______ 200__ year till “__”______ 200__ year • Amount of insurance ______________ manat 6. How many offices of auditor are there including head office? 7. Licensed auditor includes: • • •
Date and number of license of licensed auditor “__”____________ 200__ year Number of auditor assistants ( employee or involved) Number of auditor assistants in the annual report submitted to the Chamber of Auditors of the Republic of Azerbaijan
8. Turnover on the last accounting period (with manat) • Audit of financial statements • Related services • Other services
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9. Internal quality control • Has internal quality control been implemented? (in accordance with the program, if any) • Is quality control a part of internal audit in a centralized manner? • When was internal auditor inspection on quality control in a centralized manner implemented last time? • Are the working documents of auditor controlled and does this control provide the followings: - Keep the working documents of auditor and their archiving confidentially ; - Possibility of re-inspection on quality control of audit; - Availability of rules (guidelines) determined on the preparation and systematization of work documents of auditor.
Yes No
10. Information on human resources of auditor Yes No • Is Staff Involvement Policy applied by Auditor? • Are professional development courses (trainings) being held for employees who are currently working? • Are employees informed with the requirements arising from code of professional ethics? • Do more experienced workers give advice to the employees with less experience or do they control them during the implementation of contractual obligations on audit service?
Signature of Auditor ___________________
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QUESTIONNAIRE "B" Name of Auditor _________________________________________________________________ Information on Auditor's financial and economic activity______________________________ Date, number and registration number of license of auditor “__”____200 _ year, №_________, №_____________________ Manat 1. Long-Term Assets: - Long-term financial investments - Long-term receivables - Fixed assets - Intangible assets - Deferred tax assets - other long-term assets
________________________ ________________________ ________________________ ________________________ ________________________ ________________________
1. Short-Term Assets: - cash - short - term financial investments - short - term receivables - reserves - current tax assets - other short-term assets
________________________ ________________________ ________________________ ________________________ ________________________ ________________________
Total assets Capital and Funds: - charter capital - emission revenues - reserve funds - retained earnings (unpaid losses)
________________________ ________________________ ________________________ ________________________
2. Long-term liabilities: - long-term financial liabilities - Long-term liabilities - deferred tax liabilities - other long-term liabilities
________________________ ________________________ ________________________ ________________________
3. Short-term liabilities: - Short -term financial liabilities
________________________ ________________________ 4
- tax liabilities - short-term liabilities - other short- term liabilities
________________________ ________________________
Total liabilities Total liabilities and capital 6. Revenue - total, including: - audit of financial statements - related services - other services
________________________ ________________________ ________________________
7. Costs: - salary - social insurance contributions - rental fees - amortization charges - goods-material valuables -services - membership dues - other costs Auditor's report (If the law requires)
________________________ ________________________ ________________________ ________________________ ________________________ ________________________ ________________________ ________________________
Auditor’s opinion on financial statement (the date should be noted) «___»______200_year
1. Unconditional positive feedback 2. Conditional positive feedback 3. Negative feedback 4. Refusal from feedback
Signature of Auditor ___________________
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QUESTIONNAIRE “C” Questionnaire on each audit work implemented by auditor on the Contractual commitment Responsible licensed auditor _________________________________ Head of organization _________________________________ Auditor assistants _________________________________ Main Determination of audit commitments reference 1. Audited financial statements Auditor opinion on financial statements 700 A Does auditor opinion include in the main elements of financial statement? • Information of auditor conducting the audit • Information on the persons to whom the auditor opinion has been addressed • Introduction • Content of the inspection • Auditor opinion on the submitted report • Date of auditor opinion • Address of auditor • Signature of auditor 700 A In the “Introductory” part of Auditor opinion: • Do information on the audited reports included there? • •
Have the date of compiling of audited reports and the period covered by the audit been determined?
Has it been noted that the management of the audited entity is responsible for reports? • Has it been noted that the auditor is responsible for the report on the results of the audit of the financial statements? 700 A Auditor's report in the section of “Content of inspection” : • Have content, scope and applicable standards been shown? • Has the planning and carrying out inspection in the necessary extent in order to build his/her confidence for the accuracy of the auditor's views on the audited reports been approved? • 2. Assessment of stages of audit planning? Acceptance of the audit obligations and signing the contract with the client 220/ Are there procedures for the acceptance of the audit
Yes
No
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250/ 210/
obligations of the clients (previous clients or new clients)? Notes: 1) Does auditor use data from the previous auditor about client on new obligations? 2) Are reasonable causes of previous auditor about not accepting these commitments being investigated in this connection? 3) Are the requirements of audit commitment of previous clients for new period being reviewed? 4) Is there a need for a review of the requirements of existing commitments of the client?
220
Does auditor take into consideration the requirements of the commitment (contract) that it demands attention or faced by unusual risks?
220
Does auditor take into consideration the independence and the opportunity of serving to the client (technical opportunities of having the information about the customer's business activity and having the personnel necessary for conducting the audit)? Is the adoption of the audit liability being determined that it coincides with the norms of professional ethics?
220
210
310
Has Letter of Commitment or contract on provision of audit service been signed? The followings should be noted: • Audit procedures agreed with the letter of commitment or contract (by disclosing) • Procedures on financial statements agreed with the letter of commitment or contract (by disclosing) _________________________________________ • Date of letter of commitment or contract (by disclosing) _____________________________ Getting information on business activity of the client Does the evaluation of information on business activity of the client include in audit? The followings should be investigated: • General economic factors • Field of activity – important factors affecting the business activity of the client • Essence - management and property rights, composition of capital and so on. • Financial status
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The influence of the financial statements on environment • Legislative factors • Economic factors – manufactured products ( work or services), imported and exported goods, markets, suppliers, interested parties, strategic business risks, expenses, operations Evaluation of risks and internal control Has the composition risk been evaluated?
• On the financial statements • On accounting and writing in accounting Have accounting and internal control systems been evaluated? Have verification tests been conducted? Have control system risks been evaluated? Has the risk of not being identified evaluated? Importance Have the importance level been identified? General plan of audit and audit program Has the general inspection plan that describes the essence and implementation of the inspection been documented by compiling? Has the information on the business activity of the client been used in the general plan of audit? (for example, composition risks, disclosure of the development stages, disclosure of the factors that affect the financial statements, reliability of the computer –information systems and disclosure of the effect on the financial statements) Has the auditor evaluation been used in composition, control system and not identified risks that were included in the general plan of the audit? (determination of required inspection procedures in order to reduce the accepted low level inspection risks) Is the defined level of significance being used in drawing the general plan of audit? Have coordination, direction, control and analyze involvement of external experts, their replacement and the main requirements of human resources support been included in the general plan of audit? Note: To control the implementation of audit works and during review of the commitments the inspector should note the main results of the audit in order to get the main results of the audit and coordinated basic audit procedures in order
•
400
400 400 400 400 320 300
300/ 310
300/ 400
300/ 320 300
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to reconsider the approved works in audit plan by auditor. Inspector should evaluate the efficiency of the main results of the audit approved by auditor. 300 Has the inspection plan been improved and documented in order to determine the aim, term and scope of the required planned audit procedures for the full implementation of audit plan? 3. Evaluation of the implementation of audit Audit evidence 500 Note: This section can be used in order to check the correct understanding of basic concepts of auditing by auditor. Without any explanation of the meaning, by applying the following procedures, auditor is responsible for the information on the obtained inspection results. By applying which audit procedures audit evidences were obtained? •
500
Control ( inspection notes, documents or financial assets) • Observation (to observe the implemented processes or procedures) • Survey and certification (to obtain information from the people within the economic entity and outside of it and make inquiries on the information reflected in financial statements) • Calculation (control the mathematical accuracy of the information reflected in the financial statements and source documents or implement the conduction of the independent calculation procedures) • Analytical procedures (analyze important and significant information) Note: This section can be used for checking the accuracy of the auditor understands of the concepts of the audit. Without explaining of the meaning, auditor shall be responsible for the information of the obtained inspection results by applying the following procedures. By applying which audit procedures audit evidences were obtained? • Availability (assets, capital and liabilities were available for the date of compiling of the report) • Property rights (assets, capital and liabilities belonged to the enterprise for the date of compiling of the report) • Accuracy (assets, capital and liability were fully reflected in the financial statement) • Integrity (no any assets, capital, liabilities, agreements, events or not identified items that was noted in the financial statement were there)
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•
500/ 320 240
570
240
240
Assessment (assets, capital and liabilities were correctly assessed for the reporting date) • Presentation (assets, capital and liabilities were correctly grouped in the financial statements, they were correctly reflected in the report forms and they were sufficiently disclosed) Are obtained audit evidences determined by bringing the grounds in the required degree of importance? Were distorted or wrong assumptions investigated or evaluated during audit inspection? Note: The inspector should pay attention that have the main control procedures been implemented by auditor as approved in the general plan of the audit? Possibility of continuity of the performance Has the audit information (cash flow, prediction of profit or loss, guarantees of parent companies, by taking into consideration the guarantees given for the subsidiary companies) been gathered to determine the legality of the possibility of continuity? Fraud and Errors Is the risk of distortion related to the wrong information in the financial statements as a result of fraud and error taken into consideration (during the procedures of both planning and implemented inspection)? If any existing wrong and fraud cases will be investigated and if it will be revealed that it belongs to the information on the significant distortion of the financial statements, in this case, were the same issues declared to the leadership and also was it investigated that it had the relationship with the leadership (May be, “no information is available”)?
250
Can auditor perform the procedures that help to define the stages of non-conformity with the grounds of the law and legal regulation that are consistent with economic subject during preparation of the financial statements?
250
If auditor can define the stages of non-conformity with the grounds of the law and legal regulation that are consistent with economic subject, in this case, does he/she contact to founders, board of director or board of management about this? The information submitted to the auditor by the management of the economic entity Are there any evidence on auditor’s having information on the commitment of board of management on the proper submission of the financial statements? In the absence of probable causes for the availability of the other relevant evidences, is written information being obtained related to the financial statements from the management?
580
580
10
240
Is written information being obtained on errors that will reflect the financial statements from the management during inspection?
4. Evaluation of final stage of the audit Reconsideration of the methods and assumptions of the audit 210 If auditor will be offered to change the main conditions, especially to provide the lowest level of the insurance, in this case, does auditor take into consideration the relevant rules on how implement these? Note: if there will be no any changes, in this case, the answer will be “no any information”. 300 Have the general plan of audit and the program of the inspection been reconsidered as a result of arising factors during audit and revised during the stages of the inspection? 320
230
Have the accuracy of the significance level been reconsidered and taken into consideration for the evaluation of the effects of the wrong information?
Auditor’s conclusions and opinion on the financial statements Have the working documents been compiled sufficiently complete and detailed? Including: • it has provided a full understanding of the audit ; • it has reflected the type and characteristics of the inspection, it has noted timing and time consumption for the implemented inspection procedures; • The results obtained from the inspection information have been properly reflected in the working documents.
220 In order to implement the quality control including the followings, have the direction of the assistants and control on them been provided? • Were assistants guided and were they controlled; • Were works done by each assistant inspected by the employee who is in higher position and were the directed; • In the required cases, were the working documents that reflect the implemented inspection procedures been controlled by the head of the audit or by the auditor who is responsible for the inspection and were they been directed; • In all stages of the audit inspection were the procedures of the quality control been implemented? 700 230
Does auditor review the results obtained from the working documents and does he/she asses them, or does he/she use form the them for expressing opinion on the financial 11
700
700
statements? (Are the procedures such as record keeping on the completion of the auditor inspection, preparation of the final review on the amendments done as a result of inspection and preparation of the final questionnaire on the inspection being implemented?) Does auditor take into consideration the issues that don’t reflect the auditor opinion or reports related to the explanatory sections and going concern assumption? Does auditor take into consideration the issues that reflect auditor opinion or reports related to limitation of coverage and misunderstandings with the management?
700
560
560
560
400/ 240 260
240
240 260
Does auditor note the completion term of the inspection process? Next events Does auditor take into consideration the events that cover the periods until the date of preparation of reports and signing of the auditor opinion? Does auditor take into consideration the facts investigated after the date of the report, but before the confirmation (publication) date of the financial statements? Does auditor take into consideration the facts investigated after the date of the confirmation (publication) date of the financial statements? The relationship between management and control works and their relations with leadership Does auditor properly inform the leadership about Internal Control System that is in the center of attention, calculation operations and material defects? Does auditor determine the persons who have the competence of economic subject and officials on control issues? Is auditor informed about material importance error that is the result of the relevant error of the leadership and does auditor take into consideration the information on material errors related to the leadership? Is auditor aware of the relationship with wrong information with leadership? Is auditor aware about the interests arising from control related to the leadership?
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QUESTIONNAIRE " Ç" Evaluation indicators of each audit work implemented by auditor on the Contractual commitment (It should be noted for each implemented audit work) Name of Auditor_______________________________________________________ The following evaluation points are given in the items Assessment A:
From 0 to 1.5
•
Non-significant deficits;
•
If number of unimportant deficits is no more than 5
Assessment B: •
From 1.6 to 3.6
If there is no any important deficit and if there were found 12 unimportant deficits;
•
If
important deficits are no more than 1, and
unimportant ones are no more than 9 Assessment C: •
If important deficits are more than 1;
•
If important and unimportant deficits are no more than 9
Average comparison:
More than 3.7
From 0 to 8.4
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Sample: Determination of the assessment – Assessment C Non-actual deficits Questionnaire “C” 1. Auditor opinion on the financial statements 2. Adoption of the audit commitment and signing contract with the client 3. Getting information on the business activity of the client 4. Risk assessment and internal control 5. Significance 6. General plan of audit and audit program 7. Audit evidences 8. Going concern assumption 9. Fraud and Errors 10. Auditor’s conclusions and opinion on the financial statements 11. Next events 12.The relationship between management and control works and their relations with leadership
Unimportant deficits
Financial difficulties
Final
1 1 1 1 1 1 1 1 1 1 1 1
Final
0
11
1
12
Comparison
0%
30 %
70 %
100 %
Comparison of assessment: (final X comparison)
0
3,3
0,7
4,0
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QUESTIONNAIRE “D” Name of Auditor ___________________________________________________________________ Number of controlled contractual commitments _____________ Non –actual deficits
Unimportant deficits
Important deficits
Questionnaire “A” Questionnaire “Ç”
GENERAL ASSESSMENT OF THE PERFORMANCE A _____________ B _____________ C _____________
Recommendations ____________________________________________________________________ ____________________________________________________________________
____________________________________________________________________
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