Acca aa s21 Notes

4. Typical contents of working papers
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Title
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Date prepared
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Person who prepared the paper and their signature
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References to other schedules
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Purpose of the audit tests being performed
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Precise details of work performed, such as invoices examined, assets inspected, calculations re-
performed. 
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Conclusion from the work performed
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Reviewers signatures and date of review
5. Quality control
ISA 220 
Quality Control for an Audit of Financial Statements
states that quality control systems, quality 
control policies and quality control procedures are the responsibility of the audit firm. 
The objective of a 
system 
of quality control is to provide reasonable assurance that: 
(1)
The audit complies with professional standards and applicable legal and regulatory 
requirements; and 
(2)
Reports issued by the firm or engagement partners are appropriate in the circumstances.
Note the use of the word ‘system’. You will know that firms have to ensure that, for example, no one 
involved in an audit owns shares in the audit client and that fees from any one client must not be too 
great, but these safeguards cannot be left up to chance. Auditing firms need systems in place that will 
ensure that ethical codes are not broken. Systems also provide evidence that quality has been 
maintained. 
For example, each year every member of the audit staff could be required to sign a declaration that 
they do not own client shares. Each year a partner should review fees and sign a declaration that fee 
limits have not been exceeded.
The quality control requirements are:
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Leadership.
The engagement partner is responsible for the overall quality of his audit 
engagements.
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Ethics
(covered earlier in these notes). Throughout the audit engagement, the engagement 
partner shall remain alert, through observation and making inquiries as necessary, for evidence 
of non-compliance with relevant ethical requirements by members of the engagement team.
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