Page 38 - Inspection Report 2018
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Audit firms should assess and consider whether the finding is actually a symptom of a wider issue that needs
to be addressed promptly and effectively.
Chart 1
recurring findings by year (2015 – 2018)
60
50
Number of recurring findings 30
40
20
10
0
2015 2016 2017 2018
Source: AOB
rECurrING FINdINGS diagram 1
Number of Firms with recurring findings
Out of the AOB’s reinspection of 8 audit firms in out of total reinspected Firms
2018, it was observed that only 1 recurring finding
each in 2 of the audit firms. These recurring findings
were in relation to sampling and recoverability of
trade receivables.
6 Firms 2 Firms with
Recurring findings on sampling were consistently
observed by the AOB over the years, particularly in without recurring
relation to untested population arising from recurring findings
inappropriate basis of sample selection. Coupled
with the fact that sampling is one of the top findings
common findings observed in the past three years,
there should be further enhancement to the audit
firms’ current remediation actions to appropriately Source: AOB
identify the underlying root causes for these types
of findings to avoid continuous recurrence.
AUDIT OVERSIGHT BOARD
36 ANNUAL INSPECTION REPORT 2018
83806_Inside_NEW.indd 36 5/28/19 3:02 PM
