The Changing Audit Environment
    •The external audit underpins quality and credibility of 
      financial reporting and public confidence
    •Revolutionary change over the last 20 years in how 
      and when financial information is communicated
    •Global financial crisis has further triggered questions
      – Relevance of the audit and trust in the audit profession
      – Quality of auditing – effectiveness, professional judgment,  
        professional skepticism
    •Increased complexity in financial reporting and 
      global business activity has increased users’ need 
      for more information
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    Overview
    •   Audit quality framework – now and future
    •   ISQC1 and the ISAs
        •  Structure
        •  Proportional application, including documentation
    •
     IAASB update – other projects and plans
    •
     Audit efficiency
        •   Tips
        •   Resources
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    Framework for Audit Quality
       Key Elements
     .
       •  Inputs
       •  Process 
       •  Outputs 
       •  Interactions
       •  Contextual Factors
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     Framework for Audit Quality - Objectives
    •   Raise awareness of the key elements of audit quality
    •   Encourage stakeholders to reflect on ways to improve 
        audit quality
    •   Facilitate greater dialogue between key stakeholders on 
        the topic
      The  AQ  Framework  describes  the  input  and  output  factors  that 
      contribute to audit quality at the engagement, audit firm, and national 
      levels,  and  demonstrates the importance of appropriate interactions 
      among stakeholders and the relevance of various contextual factors.
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     Framework for Audit Quality – Acknowledging SME’s
    •   Inputs
        -  Auditor viewed as a valued business and tax advisor
        -  SMPs have very direct influence on governance arrangements, 
           consultation, and monitoring activities
        -  Can you have relatively straightforward quality control policies and 
           procedures
        -  External consultation, technical support and using independent 
           staff in quality monitoring processes may be challenging for SMPs
        -  A culture of consultation may need to involve external technical 
           resources (e.g., professional accountancy organizations, other 
           firms, or suitably resourced third-party organizations)
        -  SMPs with only a small number of audit clients may have 
           difficulties retaining staff with relevant audit knowledge and 
           experience
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