andPressuresAuditorsEncounterinEvaluatingIdentiï¬edControlDeï¬cienciesThemeNumberofParticipantsWhoMentiontheThemeNumberofTimesThemeWasDiscussedSourceMaterialityâAuditorsâconsiderationofmateriality.1978AScopingDecisionsRegardingtheNature/ExtentofAdditionalTestingâConsiderationandexpansionofnatureand/orextentoftestingrequiredtobecompletedinlightofdeï¬cienciesidentiï¬ed.1538AUExtrapolationâMovingfromthespeciï¬cfactsofthedetectedcontroldeï¬ciencytotheclientlevelcontrolissues.Includescontainmentofdetectedcontroldeï¬ciencies.1729AAggregationâEvaluationoftheimpactoftwoormoredetectedcontroldeï¬ciencies.2045PIdentifyingtheSourceofControlDeï¬cienciesâWhatistheultimatesourceofanidentiï¬eddeï¬ciency?Doestheproblemoriginatewiththeinternalcontrolprocess
design
oreffectiveness?1146A/AUCompensatingControlsâEvaluationoftheeffectivenessofanyidentiï¬edmitigatingand/orcompensatingcontrols.1848PPCAOBOversightâAuditorreactiontoPCAOBoversightandperceptionsofbeingsecondguessedwhenexercisingprofessionaljudgementanditspotentialimpactontheaudit.Includestheperceivedimportanceand/ortheeffectofauditdocumentation.20128AU/AAuditQualityâTheimportanceofauditqualityanditsimpactonstepstakenbytheauditorduringtheevaluationofdeï¬ciencies.1763AUPanelB:ThemesRelatedtoRQ2âTypicalManagementReactions
Defenses
andIssuesAuditorsFaceWhenCommunicatingICFRDeï¬cienciestoClientsandHowAuditorsAddressSuchReactionsThemeNumberofParticipantsWhoMentiontheThemeNumberofTimesThemeWasDiscussedSourceDifï¬cultConversationsonToneattheTopâManagementintegrityandtoneatthetop
includingentity-levelcontrolsandtheoverallcompetencyoftheaccountingdepartment.2098AManagementâsUnwillingnesstoAcceptICFRFindingsâManagementâsresistancetotheinternalcontrolclassiï¬cationofsigniï¬cantdeï¬cienciesormaterialweaknesses.2075ATheIsolated/One-TimeIncidentDefenseâGivenmanagementâsclaimofanisolatedincident
howauditorsââputafencearoundââorisolatethepotentialmagnitudeofanidentiï¬eddeï¬ciency.1536AUManagementDefenseâAMaterialErrorWouldHaveBeenCaughtâDifï¬cultyingettingtheclienttoacceptamaterialweakness
especiallywhennomaterialerrorsweredetected.2034AManagementDefenseâMRCsareEffectiveCompensatingControlsâLevelofprecisionoftheMRC
includingevaluatingtheoperatingeffectivenessoftheMRC(e.g.
consistencyofperformance
relevancetoassertionbeingtested
andcompetenceofcontroloperator).20138P(continuedonnextpage)AuditPartnersÃJudgmentsandChallengesintheAuditsofInternalControloverFinancialReporting63Auditing:AJournalofPractice&TheoryVolume39
Number4
2020Downloaded from http://meridian.allenpress.com/ajpt/article-pdf/39/4/57/2659805/i1558-7991-39-4-57.pdf by Case Western Reserve University
John Keyser on 25 January 2021
Menu
