Page 17 - Inspection Report 2018

In 2018, no shortcomings were noted by the AOB for 2 inspected audit firms.

This was a positive development from the prior year where the AOB observed
at least 1 shortcoming in the systems of quality controls for all inspected audit
firms.

Chart 1
Percentage of audit firms inspected during the year with findings from 2016 to 2018

2016
100
2017 92%
2018
80 75% 78%

67%
60
Percentage 50% 46%

40
33% 38% 33% 38% 33% 38%
25%
20 17% 15%
11%
8%
0%
0
Leadership Ethical Acceptance & Human Resource Engagement Monitoring
Requirements Continuance Performance

Source: AOB

Chart 1 depicts the percentage of inspected audit firms with findings from 2016 to 2018 where improvements
were noted in the ISQC 1 elements of:

• Acceptance and Continuance of Client Relationships and Specific Engagements;
• Human Resource; and
• Monitoring.

In 2018, the AOB observed an increased year-on-year percentage of inspected audit firms with findings in the
ISQC 1 elements of:

• Leadership Responsibilities for Quality within the Firm;
• Relevant Ethical Requirements; and
• Engagement Performance.

AUDIT OVERSIGHT BOARD
ANNUAL INSPECTION REPORT 2018 15

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