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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