| A. Engagement management |
- Certain members of the audit team began working on the audit before the internal values and ethics specialist had authorized their exception report.
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| B. Planning phase |
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An audit procedure for identifying possible risks related to contingent liabilities was not completed in the planning phase of the audit.
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No documentation was on file to show that the solicitor-client privilege letter was sent to the entity and that the response was received.
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The assessment of the applicability of an accounting standard was not sufficiently documented.
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Despite the extenuating circumstances, the review and approval of the walk-throughs performed to update the understanding of the process flow and design of controls were performed too late in the audit cycle.
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A new procedure to obtain a better understanding of cybersecurity risk related to the audit was not completed.
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The engagement leader did not complete the procedure for assessing the financial statement review risk.
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The audit team did not document its understanding of all of the control activities for a significant business process. The team also did not assess the design and implementation of the controls relevant to that risk.
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| C. Examination phase |
- There was no evidence that the engagement leader reviewed the audit evidence and related conclusions for 2 areas identified as having significant risk during planning. The team also did not document its determination that the risk level was reduced to normal at year‑end.
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| D. Reporting phase |
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The nature and scope of a difference of opinion and the resulting conclusions were not sufficiently documented in the file.
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The procedure pertaining to subsequent events after the date of the auditor’s report was signed off as completed in TeamMate at or before the date of the report. (3 files)
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The engagement leader signed off on the completion after the date of the auditor’s report.
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The audit team used the work of management’s actuary as audit evidence, but it did not complete the procedure document to evaluate the work of management’s expert.
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| E. Engagement quality review |
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| F. Efficiencies |
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Efficiency may be gained by streamlining the documentation of the review of minutes and significant contracts.
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Efficiency may be gained in some substantive analytical procedures by reassessing the determination of a significant deviation or threshold so that it is better suited to the nature of the disaggregated components.
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| G. Other practice improvements |
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| H. Summary of good practice observed |
- The audited entity is subject to several financial and performance audits simultaneously. To avoid duplicating efforts and to increase efficiency, a table has been prepared to document the key interviews and who should attend from both the entity and the audit team.
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