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TRANSPARENCY REPORT | AUDIT QUALITY

Quality risk mitigation

Before the take on of any new audit client,

RAMP approval is required. In addition, where the

client is a public interest entity, express written

consent from a member of the RSM UK Audit

LLP Board is required prior to the acceptance

and re-acceptance of any audit engagement.

The audit practice maintains a system of

internal authorisation. Given the diverse nature

of our audit client base, RSM UK Audit LLP

requires RIs to hold specific authorisations

to carry out work on specialist audit

engagements, including those of AQR scope

entities, other listed entities, FCA regulated

entities, charities and pension schemes. This

ensures that only those individuals with the

prerequisite skills, experience and training

can undertake such specialist audits. Similar

authorisations are also in place for audit

managers. Appropriate training is a prerequisite

before audit staff can be utilised on specialist

audit engagements.

Group audit engagements are

considered to be higher risk when

the extent of the involvement of

component auditors is significant.

Significance is defined as more than 50%

of the consolidated total assets, total revenue

or other relevant benchmark. A NATS

consultation is required in these circumstances

at the acceptance/re-acceptance stage of the

audit engagement to ensure the audit strategy

is appropriate. In addition, work programmes

have been developed to assist audit teams in

documenting their audit strategy in a group

context and associated thought process which

is supported by the development of:

● specific training and guidance on the

application of the associated auditing

standard; and

● templates in relation to the issuance of

group instructions and documenting and

evaluating our review of the component

auditor working papers.

RIs are required to record a minimum number

of hours to audit engagements. The quality

team monitor the hours recorded by RIs and

take appropriate action where considered

necessary. A failure to record the minimum

hours required can result in the loss of

audit authorisation.

AUDIT QUALITY

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