Professional Documents
Culture Documents
Audit
Audit
Audit
Human Resource
a. High staff turnover, leading to a shortage of experienced auditors.
The Deloitte Philippines have a high staff turnover, leading to a
shortage of experienced auditor, to resolve this problem the
company must have to deals with PSQC 1 under the human
resources. The Deloitte Philippines they must offer competitive
compensation to their employee so that they can enhance
employee satisfaction and retention. They can conduct a survey to
those remaining employee why they are quitting to the company, if
ever the problem is the salary, the company may increase it.
b. Firm policies were outdated and did not fully align with current ethical
requirements.
The Deloitte Philippines may identify the gaps, where they conduct
a thorough review of the existing policies and identify the areas
where they fall short of current ethical requirements. They must
update the polices based on the gap identified, update the policies
to ensure that they are in line with current ethical requirements.
They must communicate the changes once the updated policies are
in place to all employees and stakeholders; this can be done
through training or they must email them. Then monitor the
compliance and review and update to ensure that they remain
relevant and aligned with current ethical requirements.
a. The leadership team did not fully embrace their responsibilities for
maintaining audit quality.
Maintaining audit quality is crucial for the success of any
organization. The Deloitte Philippines can identify the root of cause,
in this they must conduct a thorough review of current audit process
and identify the areas where the leadership team is not fulfilling
their responsibilities. Communicating is the importance once the
root cause has been identified, to maintaining audit quality to the
leadership team. They must provide support to the leadership team
to help them to fulfill their responsibilities. Hold the leadership team
accountable for maintaining audit quality.
5. Engagement Performance
a. Past audit engagements revealed deficiencies in risk assessment,
documentation, and evidence.
The Deloitte Philippines may conduct a thorough risk assessment
where they identify the risks that could affect the organization an to
assess their likelihood and potential impact. Documenting the
internal control procedure can help to identify gaps and
weaknesses in the processes. They can also ask feedback from
the stakeholders such as customers, employees and suppliers.
Where this can help to identify areas where you need to improve
your processes or documentation.
Quality control standards are designed to ensure that auditors follow a consistent set of
procedures when conducting an audit. Adhering to quality control standards also helps
to ensure that the auditor is able to identify and address any deficiencies in internal
controls over financial reporting, which can help to prevent fraud and other financial
irregularities 3.
In addition, adhering to quality control standards such as PSQC 1 can help to improve
the overall quality of the audit process by ensuring that auditors are properly trained,
that they have access to the necessary resources, and that they are able to work
effectively as a team 456. This can help to reduce the risk of errors or omissions in the
audit process, which can help to improve the accuracy and reliability of the financial
statements.