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· Audit Plan made by the audit firm was not elaborate as it did not cover the nature, timing and extent of direction and supervision of engagement team member regarding the vouching part of the Audit engagement.

· The audit strategy and program did not include specific details about related parties and the material transactions as made known by the management and the same was not effectively communicated to the audit team members.

· The audit programs have not been filed and signed by the persons auditing and reviewing the assignment.

· Audit firm had not prepared any document to provide sufficient and appropriate record of the basis of audit report and evidence that the audit was planned and performed in accordance with auditing standards and applicable legal regulatory requirement.

· Audit strategy, audit plan and audit programme had been intermingled by the firm. However, the overall audit strategy should be documented separately in accordance with SA- 300, and the audit plan should also consider the Directions and sub- directions given by CAG u/s 619(3) of the Companies Act, 1956 to be complied with.

· In respect of Audit Planning and Risk Assessment, there was no detailed Audit Planning Memorandum; and audit procedures carried out were not complete.

· There were no evidences of any audit planning or risk assessment by audit firm. Improvement in Audit Programme & Procedure in light of experience gained during the course of audit was not evident and documented. The Audit Programme required improvement to enlarge the extent and scope of physical verification of security charged to minimize the perceived risk in this regard.

· The Audit programme was initialed by the engagement partner and not by the concerned team members/assistants who have carried out the verification process.

· Firm did not include all the elements of how the audit plan assessed and addressed the fraud risk in the audit of financial statements

Quality Review Board Report on Quality Review Findings (2012-15) Click Here >>

Quality Review Board (QRB) Report 2012-15- Planning an Audit of Financial Statements in Accordance with Standard on Auditing SA 300 |18-08-2015|