(a) Explanation of quality control and other professional issues
Generally up to 1 mark for each point explained:
– Analytical review mandatory at the final review stage
– Objective to ensure that financial statements consistent with auditor’s understanding
– A quick look unlikely to be sufficient especially as this is a new audit client
– The fact that it is deemed low-risk does not negate the need for analytical review
– Lack of analytical review increases audit risk especially for a new client
– Other information must be read with objective of identifying material inconsistencies
– Manager to be questioned to see what work has been done and what documentation exists
– Likely that chairman’s statement needs to be properly read and audit conclusion documented
– Audit manager lacks understanding of ISA requirements or taking short-cuts
– Audit manager may need further training

Maximum marks 7