Question 1b
Marking Guide
Practice management and quality control issues
Generally 1 mark per comment from ideas list:
– Raising materiality level increases detection/audit risk
– Materiality judgemental and should be specifically determined for each client
– Should not fix materiality at planning stage – against ISA 320
– Training promotes a culture of high quality auditing
– Cutting training is contrary to the principles of ISQC 1
– Audit teams will not be up to date on current developments
– Quicker audits cannot be guaranteed
– Short-cuts will reduce audit quality and increase detection risk
– The manager’s suggestions are inappropriate
Maximum marks 6