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(i) What is an audit peer review? (ii) State and briefly explain the objectives of an audit peer review

      

(i) What is an audit peer review?
(ii) State and briefly explain the objectives of an audit peer review

  

Answers


Wilfred
i) Peer Review
This is a review of an audit firm‘s systems, procedures, and audit standards generally, conducted by another firm of comparable site and reputation. It‘s a review of a firm‘s complete set up by another firm and should be considered occasionally.


ii)
- Quality Control: peer review ensures a certain standard is achieved by an audit firm as a minimum, at least.
- Independence: The reviewing firm wants to confirm that the audit farm was working independent of its clients.
- Staff performance: To review the performance of audit staff and to assist them in improving their future performance.
- Weaknesses: To identify areas of weaknesses in the firm‘s procedures or applications thereof and to suggest solutions.
- Audit Opinion: To determine whether the scope and result of the audit work (audit evidence) is adequate to support the opinion as given in a particular audit.
- Industrial comparison: Review of a number of specially selected audits by the peer reviewers to check consistency of audit approach and application of a particular statement of standard accounting practice.

Wilfykil answered the question on February 22, 2019 at 11:34


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