|Whole audit firm review|
The objective of a whole audit practice review is to identify any issues in the internal control procedures of the auditor. This involves reviewing the general compliance matters whilst testing if these are operating efficiently through a cold file review. This review can be a preparatory review for the regulator’s visit or as part of the Annual Compliance Review carried out by the auditor.
ISQC 1 requires auditors to communicate, at least annually, the results of the monitoring of its quality control system to engagement partners and other appropriate individuals within the audit practice, including the managing board of partners. Clearly auditors need to consider the urgency of any matters found in the review and need to make appropriate changes and to communicate these as soon as possible. it is important for the auditor to select an appropriate way of achieving compliance and to ensure the monitoring is carried out properly.
A whole audit practice review includes: