Internal quality control (cont’d)

Audit reporting

Issue audit opinion

A financial statement review is conducted to determine whether the financial statements are consistent with the information obtained during the audit and whether they are appropriately presented. Based on the audit process and the review of the financial statements, William Buck will determine the appropriate audit opinion to be issued, and for listed clients will determine the appropriate key audit matters to be communicated.

Reporting to management and those charged with governance

Significant matters that need to be raised with management and/or those charged with governance are communicated in writing.

Given open communication is a key foundation to the William Buck audit methodology, it takes place continuously, such that management and those charged with governance are kept up to date with progress and there are no surprises.

Audit quality fundamentals

Audit quality fundamentals penetrate all aspects of each audit engagement conducted by William Buck. The key audit quality fundamentals are as follows:

Professional skepticism

The mindset of professional skepticism is a key behavioural element required by all audit professionals. William Buck emphasises and drives this behaviour as business critical, through its policies, procedures, training and evaluation of audit personnel.

Supervision, review and consultation

The firm’s policies and procedures in relation to audit engagements are outlined overleaf.

Our consultation culture

Consultation is key to delivering high quality audits. In addition to formal consultation requirements, we have a strong consultative culture where directors regularly consult with other practitioners or the technical team outside of the policy requirements.

Engagement Quality Control Reviews (EQCR)

EQCR PIE engagements as defined in the Glossary of APES 110Code of Ethics for Professional Accountants (including Independence Standards)

Director / Principal

Consider whether:

The work has been completed appropriately line with the audit plan and meets the requirements of the auditing standards and where relevant, professional pronouncements and legislation. whether:

The audit work conducted appropriately addresses the audit risks identified.

The appropriate technical consultations were made and the conclusions drawn are appropriately documented.

The evidence is sufficient to support the audit opinion.

Consider whether:

The audit team made the right conclusions in relation to matters of significant judgment and the work papers appropriately record the conclusions drawn.

The financial statements and audit report are appropriate.

The appropriate technical consultations were made and the conclusions drawn are appropriately documented.

Specialist Reviews

Financial statements preissuance

Audit opinions

Disclosing entities are reviewed annually if certain criteria are met, otherwise every alternate year

All engagements where an Emphasis of Matter, Material Uncertainty or modification is being considered.

All Long Form Audit Reports.

Consultations Mandatory consultations are required in specific circumstances following the Consultation policy. In addition, teams also consult on a professional judgement basis.

Group Technical To assess the financial statements for compliance with the Financial Reporting Framework

Experienced director panel, Group Technical

Group Technical, Corporate Advisory, Tax, other experts

To consider and review the appropriateness of the proposed audit report and the wording of the modification, material uncertainty or emphasis of matter

To support engagement teams adopt the correct interpretation for difficult or contentious issues