Firm’s action plan to improve the standard of audit work

GENERAL INFORMATION

Firm’s name Shirley Jack Visit end date: 13/01/2021

Senior Practice
Ref number TRI2102A Faizal Ali
Reviewer:
.
1. ACTION THE FIRM HAS TAKEN TO ASSIST IT IN MAKING THE IMPROVEMENTS REQUIRED

Additional audit CPD and training planned for audit principals and audit staff
All the necessary CPD available during this calendar year re training, IFRS seminars and studying ISAs for the
Year 2021.
 
     
Firm’s response:      
Will begin in April 2021.    

Arrangements made with an external training organisation

Only has confirmation for a 3hour session in the month of April. Will enrol as I see fit during the year.

     

     
    
Other external assistance
     
Firm’s response:      
:  NO    

2. ACTION PLAN TO IMPROVE THE OVERALL QUALITY CONTROLS FOR AUDIT WORK
The firm should explain in detail the changes and improvements which are designed to provide it with reasonable assurance that, in futu
engagements will be performed in accordance with professional standards and regulatory and legal requirements, and that the firm or the
engagement partner will issue reports that are appropriate in the circumstances. The response should include:

International Standard on Quality Control 1 (ISQC 1)

     
Firm’s response: According to ISA 220, the firm has documented audit programmes. This firm is literally a one-man show
I rarely use a contracted staff. The firm will review and establish and document its quality control policies and
procedures to ensure that it complies with professional standards and regulatory and legal requirements.

ETHICAL CONSIDERATIONS
The firm will obtain written confirmation from its subcontractor once per year re matters of independence re ISQC
1.24 and other ethical requirements re ISQC1.20'

Client acceptance
The firm does have a new client checklist and sso at the next audit I will ensure that ISA 210 is complied
Both files were quite small and I know I have the capabilities to perform the engagement. There was no doubt about ethical
requirements. Both files were new to audit but had accountants' reports and are classified as Non Governmental Organisati
PP
Procedures for reasonable assurance will be recorded in the performance of the audit in 2021,

Engagement performance
Appropriate audit evidence was acquired in all areas on file 2. On file1 the evidence was not properly documented but was
obtained.

Monitoring
Since I have only 2 audit files annually, I am communicating with another auditor to periodically inspect one of such files.

Communicating with those charged with governance

The engagement letter for file2 contained the timing of the audit. In future a special communication will be recorded as
required by ISA 260.

Understanding the entity and its environment

Both files contained more internal check than internal control. Staff is no more than 3 persons. In file2. 100% check was
carried out of every item especially as the organisation is now putting its house in order. Will ensure at the next audit
That compliance is achieved as required by ISA 250, 240, 240.17,.18 and ISA 315.

Planning
Audit risk was at a low level but will do as required by ISA 300. In file2 additional completion of income tests will be
performed in future.

Materiality
Will comply with ISA 300.

Control and review

Additional appropriate audit evidence will be obtained and recorded in all significant risk and material areas to support the
conclusions reached as required by ISA 220.

Documentation
Adequate documentation will be prepared to comply with requirements of ISA 230.

Actual/expected implementation date(s):   31st December, 2021   

    
     
Audit area / ISA Firm’s response on the action to be taken including implementation d
Engagement letters ISA 210     As above 
Communicating with those charged with ISA 260     As above 
governance
Understanding the entity and its ISAs 315, 240     As above
environment including systems & risk and 250
identification (business, fraud, etc), laws
and regulations
Planning including risk assessment, ISAs 300 and      As Above
devising audit approach & tailoring 330
audit programme
Materiality ISA 320      As above
Documentation (General improvements ISA 230    As above  
only – deficiencies in other areas which
are the result of poor documentation
should be detailed in those areas)
Audit evidence ISA 500
Validity of fixed asset additions   Will verify additions physically and supporting documentation   
Accuracy of depreciation charge  Will record the reperforming of calculations  
Existence and condition of moveable fixed assets  Will properly record tests done physically    
Ownership of property Will inspect deeds and relevant certificates of ownership     
Assessing any indicators of impairment of property Perform procedures and record to determine any impairment of property
in accordance with IAS36     
Completeness of accounts payable Define and record the extent of the review of subsequent year end events     
Validity and completeness of income from “tithes”, Perform all tests in keeping with the verification of the completeness of
“general offering”, transfer from building fund and income. such as further testing records of revenue to bank deposits.     
“events” income relating to a movie premiere
Completeness of income from donations      As above

Validity and completeness of payroll costs Will verify payroll costs against bank disbursement records 

Validity and completeness of non-payroll expenses Will verify and record all testing of transactions to source documents
to assess the sufficiency of the audit evidence     
Identifying contingencies and commitments Although performed in file2 it must be recorded because it could affect
the financial statements    
External confirmations ISA 505 Obtain external confirmations as a means to verifying balances.     
Opening balances ISA 510 All opening balances were agreed to statements Previous year's figures
were signed off by accountants.     
Analytical procedures ISA 520 Were performed on a small scale on file2. In future will comply with IAS
520    
Subsequent events review ISA 560 Performed not recorded as required by ISA 560. Will comply with
Statement     
Management representations ISA 580 will be performed for the following years.     
Communicating deficiencies in internal ISA 265 Discuss with management deficiencies and record same     
control
Review of financial statements ISA 330 Will include disclosures as required by ISA 330. Ensure that the appropriate
Checklist is used. will comply.  
Going concern review ISA 570 Will comply. 
Format and content of audit reports and ISA 700 Will review format and adjust accordingly.   
retaining evidence of approval of the
financial statements
4. OTHER COMMENTS
The firm may provide any other relevant information or comments on matters not covered above.

Firm’s comments:  
You spoke about display of auditing certificate. Since I was not in my place of business I do not understand that criticism.   

5. ATTACHMENTS / ENCLOSURES
The firm should list below any documents which form part of this action plan and provide copies to ACCA:
     
     
     
     

Date of submission of action plan to ACCA: Prepared/submitted by:  Shirley Jack    

     March 27, 2021 Capacity:   Sole Practitioner   
(e.g. contact principal, audit
compliance principal)