Question

5. You are assigned to carry out the audit of the financial statement of Gremm Chemical Products Ltd for
the year ended 30 June 2017. You discover that two of the audit working paper files from the preceding
year’s audit is missing. The preceding year’s audit was carried out by Bale Clarke, who has already left
the firm. You are concerned as you do not have much knowledge about the chemical products and this is
only the second audit assignment for which you are responsible.
You consult your manager and ask to be given more time to complete the audit.
Required:
a) Discuss two significance of audit quality control.

b) Do you think it is adequate just to ask for more time? Why or why not?

Answer 1

1)throughout the audit engagement ,the engagement partner remain alert,for non-compliance with relevant ethical requirement by members of the engagement team.if matters come to the engagement partner's attention that indicate that members of the engagement team have not complied with relevant ethical requirements,the engagement partner,in consultation with others in the firm,determine the appropriate action.

2)the engagement partner shall take responsibility for the overall quality on each audit engagement to which that partner is assingned.

NO, it is not adequate to ask for just more time but in addition he should also try to manage the working paper lost ,its management responsibility to provide all the information required by auditor.if in case management fails to provide due to reasonable cause so auditor should go to his experties if it can be solve by them or should collect information from by external confirmation in case of debtors etc.