At the individual audit level, however, it shall be absolutely necessary that the work delegated to assistants is directed, supervised and reviewed in a proper manner.
Direction: Direction involves informing assistants of their responsibilities and the objectives of the procedures they are to perform. It also involves informing them of matters, such as the nature of the entity’s business and possible accounting or auditing problems that may affect the nature, timing and extent of audit procedures with which they are involved. The audit programme is an important tool for the communication of audit directions. Time budgets and the overall audit plan are also helpful in communicating audit directions.
Supervision: Supervision is closely related to both direction and review and may involve elements of both. Personnel carrying out supervisory responsibilities perform the following functions during the audit:
- monitor the progress of the audit to consider whether:
- assistants have the necessary skills and competence to carry out their assigned tasks;
- assistants understand the audit directions; and
- the work is being carried out in accordance with the overall audit plan and the audit programme.
2. become informed of and address significant accounting and auditing questions raised during the audit, by assessing their significance and modifying the overall audit plan and the audit programme as appropriate; and
3.resolve any difference of professional judgement between personnel and consider the level of consultation that is appropriate.
Responsibilities would include to monitor the progress of audit, consider significant accounting and auditing question and resolve any difference of professional judgement as well.
Review: The work performed by each assistant would require to be reviewed by a personnel of at least general competence.