Representatives of HLB members firms from the Middle East region attended the three-day HLB audit training for the Middle East countries conducted last 27 to 29 of September 2019 in Amman, Jordan with Khalid Marhoon (KM), Managing Partner of Elyaa Audit and Consulting (Elyaa) as the resource speaker and trainer. Elyaa is the HLB’s appointed technical Quality Control (QC) reviewer in the region.
KM started the session by emphasizing the importance of quality assurance and the need to increase awareness on key quality issues in the region. Accordingly, this is also in response to the compliance requirements of ISA and ISQC1 as we all aim to increase our audit quality through an in-depth understanding of the overall quality assurance and the compliance process. KM gladly shares to the participants that being a member firm of HLB network of firms, we all have an unlimited access to the HLB audit manual and tools which is an audit methodology that we can adopt while carrying out an audit in accordance with the International Standards on Auditing (ISA).
The three-day audit training session also includes discussions of the latest updates on IFRS 15 and 16 and ISA developments such as ISA 700 – Forming an Opinion and Reporting on Financial Statements, ISA 250 – Consideration of Laws and Regulations in an Audit of Financial Statements, ISA 540 – Auditing Accounting Estimates and Disclosures and the three quality management standards. These updates as explained by KM is a manifestation of the HLB network of firms’ commitment to keeping business entities and its clients abreast with the amendments and additions to the accounting standards affecting financial reporting and the region. Moreover, KM reminded the attendees that these updates will ensure that the standard continues to keep pace with the changing market and fosters a more independent and challenging mindset for auditors.
“Documentation is the key to audit quality”, KM continues as he discussed the auditor’s understanding of the internal control environment which includes the entity’s risk assessment process, information system, control activities and monitoring of controls. The challenge though, is on how to document the understanding and up to what extent. The new HLB International Audit Manual as discussed further by KM addressed such challenges to ensure that auditors maintain quality audit files and working papers through the audit process starting from the preliminary engagement activities, planning, execution, review and completion and until the reporting. Practical examples on how to use the manual with current issues was also shown to enable the participants to apply to their actual files and resolve those issues while maintaining quality audit.
Before formally ending the audit training, KM refreshed the participants by showing a video presentation on what is it like in a day in the life of an audit junior and audit manager highlighting their specific roles and responsibilities in the conduct of audit and maintaining good client relationship. Finally, KM concluded the training with some business development topics to help the member firms in their strategies to increase their clientele and how the HLB network of firms not only within the region but around the globe will become an advantage.