TASK 3

Assignment Task 3

Assignment Task 3

Introduction

The paper is basically divided into two parts, first part based on the relevant parts of the code of ethics for the professional accountants. For this purpose, the author highlighted the importance of the professional accountants because there role is very much critical in the auditing of the firm. Similarly, in the second half of the paper, the author discussed the potential liability of the auditor to their client. Therefore, in this discussion the author covered the relevant cases and discussed the auditing standards, which might be helpful for the readers to get the better understanding of the paper.

Task 3a

The purpose of the task 3a is to develop a draft based on the quality assurance requirements because of the surveillance program asked by the DeAnna Mallot, who is the partner of A&C, and thus formulated a draft demonstrating the requirements to the ASIC reviewer.

By studying the literature, the author came across that the auditing standard very important to establish because it help in providing the guidance to the firm in conducting the audit based on the quality control requirements. Thereof ere, in this regard the author designed certain guidelines necessary for the auditing in terms of quality control.

Guiding principles and measures of an audit firm concerning audit work generally, and

measures based on the assignments handed over to assistants on an individual audit.

Similarly, the rules and regulations regarding the quality control procedures must be implemented on both the ends, whether it's the audit firm and specific audit assignments.

Audit Firm

It is necessary for the auditing firm to apply the standard procedures regarding the quality control, so that it could ensure that the audits must be conducted in accordance with ASAs standard practices.

Based on the practices of the quality control practices of the A&C, the author designed certain objectives that must be adopted by A&C to meet the quality control standards;

Competence and Skill; Staff should have technical standards and professional competence required to fulfill their responsibilities.

Assignment; This work should be assigned to staff who have some degree of technical training and proficiency required in the circumstances.

Delegation; You must have direction, supervision and review of work at all levels to provide reasonable assurance that the work performed meets appropriate quality standards.

Acceptance and retention; It should make an assessment of prospective clients and a review of a database of existing customers continuous and consider the capacity and independence of the firm to service the client properly and the integrity of the client's management.

Professional requirements; The firm personnel shall observe the principles of independence, integrity, objectivity, confidentiality and professional behavior.

Monitoring; Should be a continuous and adequate on the operational effectiveness of the policies and procedures of quality control.

Queries; Whenever necessary, consult within or outside the firm, with those who have the appropriate expertise (Summers, 2006, pp. 210-16).

Arrangements for general practice organization related to the observance of the general ethical requirements, acceptance, continuation and early termination of contracts, employee development, overall planning of all orders as well ...