INTRODUCTION

Practically the auditors includes all members of the audit team on a particular assignment. The person who takes overall responsibility for the auditors report is known as the engagement partner. He or She may delegate certain aspects of the audit work to other persons but the overall responsibility for the performance of the audit is the engagement partners alone. THE TYPICAL COMPOSITION OF AN AUDIT Engagement Partner

Audit Manager

Audit Senior

Audit Junior The official bodies of professional accountants in the UK are: ACCA ICAEW ICAS ICAR CIMA CIPFA

The above bodies are the members of the consultative Committee of Accountancy Bodies known as the CCAB. The 1 st four bodies have one thing in common; they are recognized by the Companies Acts for the purpose of the qualification to be a company auditor. An RSB (Recognized Supervisory body) is a professional body recognized by the Department of Trade and Industry under the Companies Act 1989 as competent to establish audit regulations to which registered auditors are subject. Firms granted registration are entitled to record such status on their writing paper and letterhead. (The Auditing Today Emile Woolf, 6th Edition)
Audit and Internal Review Individual Assignment (Paper 2.6) The University of Brighton (Muhammad Arshad Khan, Student Ref.: 02823797)

THE REGULATION OF AUDITORS: ICAEW, ICAS and ICAI have jointly published Audit Regulations and Guidance. These rules are for registered auditors cover various matters including: Eligibility & registration Conduct of regulated audit work Fit and proper status Maintenance of competence Monitoring compliance with the audit regulations

The objective of the institute in issuing these audit regulations are to make sure that: Auditors registered with the institute maintain high standard of work. The reputation of registered auditors with the public is maintained. The application of the regulations is fair but firm. The regulations are clear. The regulations apply to all sizes of firm.

(Student Manual of Auditing by Diane Walters & John Dunn, 6th edition) ELIGIBILITY: A person who is eligible to carry out audits under UK law is anyone who is on the register of auditors maintained by an RSB. Such a person should hold an approved UK qualification (e.g. ACCA membership) or an approved overseas qualification (e.g. membership of the Institute of Chartered Accountants in New Zealand). REGISTRATION: The RSB must require its member to pass examination in order to obtain the necessary professional qualifications as a prerequisite for Registered Auditor status. CONDUCT OF REGULATED AUDIT WORK: There are two main elements: Integrity, objectivity and independence Technical standards

Audit and Internal Review Individual Assignment (Paper 2.6) The University of Brighton (Muhammad Arshad Khan, Student Ref.: 02823797)

Integrity, objectivity and independence: The auditors regulation include requirements for control of firms designed, in conformity with the Companies Act 1989, to ensure that these are controlled by qualified persons and that their independence from outside influences is assured. The guidance which follows indicates area of risk arising from various situations and relationships in which a members independence as auditor and hence is objectivity may be threatened. Technical standards: The Audit Regulations and Guidance require a registered auditor to comply with statements of Auditing standards (SASs). Quality assurance inspections assists the registered auditors in complying with standards. The enforcement of a system of Practice Regulations is carried out by visits made by inspectors from the joint monitoring unit (JMU). These persons inspect the audit documentation and report on standards are inadequate, audit registration can be withdrawn. FIT AND PROPER STATUS: RSBs must setup and maintain monitoring arrangements in order to ensure that the persons on the Register of Auditors are fit and proper and possess the necessary degree of competence. This is achieved by the systems of practice regulation that requires the following: An annual return setting out details of practice administration. A requirement for professional indemnity insurance with approved insurers Maintaining quality control of audit work viz.: Following an accepted audit methodology Programs of training and professional development for the staff Ensuring that staff are fit and proper persons and are suitably independent. MAINTENANCE OF COMPETENCE: Maintenance of competence consist of four sections: Recruitment Technical training and updating On-the-job training and professional development Information technology
Audit and Internal Review Individual Assignment (Paper 2.6) The University of Brighton (Muhammad Arshad Khan, Student Ref.: 02823797)

(Total Words: 623)

BIBLIOGRAPHY
(Student Manual of Auditing by Diane Walters & John Dunn, 6th edition) Walters, Diane,(2000), Student Manual of Auditing, Sixth Edition, Thomas Learning Publishing Ltd. ACCA Study Text (2002), Foulk Lyncks Publishing Ltd. Woolf, Emile, (1997), Auditing Today, Sixth Edition, Prentice Hall Europe Publishing Ltd.

Audit and Internal Review Individual Assignment (Paper 2.6) The University of Brighton (Muhammad Arshad Khan, Student Ref.: 02823797)