Page 19 - Inspection Report 2018

Table 1
Common findings identified by the AOB during the 2018 inspections (Continued)
Common findings Key concerns / risks AOB reminders
Engagement performance

Some audit firms have not The lack of controls over the Audit firms are required to implement
established control procedures to assembled audit engagement files effective controls to safeguard
address alterations made to audit posed the risks that documentation confidentiality, safe custody and
engagement files subsequent to and audit evidence could be altered, integrity of audit engagement
assembly of final audit files. added or deleted without the audit documentation.
firm’s knowledge.
Stern actions will be taken on audit
firms found to have serious lapses in
this area.
Monitoring

The operating effectiveness of the In the absence of a robust monitoring Audit firms have a duty to ensure
system of quality control of certain process, weaknesses in a firm’s that its monitoring functions are
audit firms was not evaluated due to system of quality controls could not adequately staffed and led by a
lack of resources. This is a recurring be identified and rectified on a timely partner who has the appropriate
observation from prior year. basis. experience and authority.

Source: AOB

AUDIT OVERSIGHT BOARD
ANNUAL INSPECTION REPORT 2018 17

83806_Inside_NEW.indd 17 5/28/19 3:02 PM