University Assignment: ACCM4400 ASA 220 Audit Standard Summary

This essay provides a detailed summary of ASA 220, the auditing standard concerning quality control for audits of financial reports. It outlines the standard's application, scope, and the importance of maintaining quality throughout the audit process. The essay emphasizes the auditor's responsibilities, objectives, and the ethical requirements they must adhere to. It explores the significance of auditor independence, documentation, and the company's quality control systems. The summary covers key aspects such as ethical considerations, independence, and documentation requirements. Furthermore, the essay highlights the importance of maintaining a robust quality control system within the company to ensure accurate and reliable financial reporting. In conclusion, the report underscores the significance of ASA 220 in ensuring the integrity and reliability of the audit process and financial statements. The provided essay adheres to the guidelines set forth in the assignment brief, offering a clear and concise overview of the ASA 220 auditing standard.

Running head: AUDIT
AUDIT
Name of the Student
Name of the University
Author Note

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Introduction
Auditing is a process of examination and inspection of financial statement of the
company, it checks all the aspects of company financial to get the knowledge whether the
company financial statement are showing true and fair view or not. Auditing process can be
carried internally as well externally (Auasb.gov.au 2019). Internal audit is carried by the
employee of the company who mainly focus upon the company structure and internal control
as it checks whether the company is able to proper internal control system or not. External
audit is carried by a person who does not have any kind of interest in company business and
able to give an independent decision about the financial position of the company. This essay
emphasis upon an Auditing Standard which is to followed by the auditor while carrying the
audit service, the auditing standard is ASA 220 which deals with Quality Control Aspects of
Auditor.
Auditing Standard 220
Application of the Standard
This audit standard applies to each financial organization who make its financial
report for a year or half-yearly which is prepared in related to Corporation Act 2001 and also
to all those entities who prepared the financial report for any other purpose (Auasb.gov.au
2019). The operating date of the standard is 1 January 2010 so after this date each entity has
to follow all the rule and regulation listed in the standard.
Scope of the Standard
This standard state about the quality which the auditor has to maintained while
carrying different audit process in the company financial statement (Auasb.gov.au 2019).
This show the responsibility which the auditor has in regards of audit process and how it can
able to make proper utilization of the process to maintain the audit quality in the company.

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System of Quality Control
As per paragraph 2 state that the company should able to maintain all the auditing
standard in the business so that it can fair amount of information and it should also able to
follow all the required rules and regulation in the firm (Auasb.gov.au 2019). It also state that
the company should make the financial statement as per the rules so that the information are
easily available to other user of the company.
It states while carrying the audit procedure in different company it should able to have
a proper parameter of the quality control which can help them to gain an proper information
in the business (Auasb.gov.au 2019). The team which are engaged in the audit should be
reliable to the system of the company in regards of the quality of information or it can also
take other information from the management in regards of company business.
Objective of the Auditor
The objective which is there by the auditor as per this standard is that it should check
all the procedure which the company have followed to prepare the financial statement
(Auasb.gov.au 2019). It should check that the company has follow all the standard in their
book as well it have presented the report as per the regulation in the financial statement of the
company.
Ethical Requirement of Standard
It state that the auditor should able to be alert in regards of ethics so that it can know
whether the company is following all the rules and regulation in the business or not. It should
able to observe the management aspects in regards of company business so it can judge the
information more easily and effectively (Auasb.gov.au 2019). It should check that all the
partner are able to apply the rules and regulation and able to form the financial statement as
per the norms.

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Independence
It state that the audit engagement should be able to have an independency principle
while carrying its audit procedure in the company. As to maintain this the audit company
should able to gather all the information of company and also other related information so
that it can judge the fair value aspects more easily in the business (Auasb.gov.au 2019). It
should evaluate the firm policy as per the financial statement so that the it can ascertain about
the company more easily in the business. It should ascertain all the aspects which can directly
affect independency of the audit firm in the company, the audit firm should able to check all
the policy and procedure of the firm easily so it can know that how the management is able to
affect auditor independency principle. As the auditor is able to know all the threats than it
should make necessary changes so that it can remove the threat and able to give proper
amount of feedback upon the financial statement of the company.
Documentation
There is some document which the company auditor able to show as it should show
the factor of company following all the ethical requirement in the business as well as how the
company is able to resolved the same in their business. It should also give a conclusion
statement upon the independent requirement of the business and whether the audit
engagement is able to apply with the same in the company business (Auasb.gov.au 2019). It
should also attached the conclusion related to the acceptance and continuance of audit
engagement and client relationship. All the audit process which the auditor has carried so it
should conclude the same in the company business.
System Quality in Company
It state that the company should follow this to maintain a proper quality in the
business as it should able to follow the leadership quality in the business so it can able have

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proper work flow, it should able to meet all the relevant ethical regulation and able to carry
the business as per their norms and regulation.
Conclusion
The report conclude about the auditing process as in these process the auditor is able
to examine and inspection the financial books so that it can able have proper information in
regards of fair value in the company. It conclude about ASA 220 and show different aspects
which should be followed by Audit engagement in the company.

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Reference and Bibliography
Auasb.gov.au (2019). [online] Auasb.gov.au. Available at:
https://www.auasb.gov.au/admin/file/content102/c3/Nov13_Compiled_Auditing_Standard_A
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