1. How does an auditor know he or she has sufficient, appropriate evidence to support the financial statements, including disclosures? What checks and procedures are performed to ensure audit quality is maintained?

Hint: Audit Completion Phase; consider elaborating the following point in your discussion:

1. Focus on Integrating the audit evidence gathered and evaluating the overall audit results.

* As an aid in deciding whether the audit evidence is adequate, auditors often use a completing the audit checklist like examination of prior year audit documentation, Have all significant deficiencies and materials weaknesses been reported in writing to those charged with governance(Evaluating Internal Control), has internal control been adequately understood? Has the permanent file been updated ( evaluating General documents) , Have major contacts and agreements been reviewed, and complies with all existing legal requirements ETC...

2. financial statement disclosure checklist like

-Are the following disclosures included in the financial statements or notes:

-Balances of major classes of depreciable assets (land, building, equipment, and so forth) at the balance sheet date?

- Allowances for depreciation, by class or in total, at the balance sheet date?

- General description of depreciation methods for major classes of PP&E?

- Total amount of depreciation charged to expense for each income statement presented?

3. Audit Documentation Review like

- To evaluate the performance of inexperienced personnel

- To make sure that the audit meets the CPA firms standard of performance.

- To counteract the bias that often enters into the auditors judgment

4. Engagement Quality Review

An engagement quality review sometimes called an independent review, is required for SEC engagements, including the review of interim financial information and the audit of internal controls. This reviewer often takes an adversarial position to ensure the audit's conduct was adequate. The audit team must be able to justify the evidence it has accumulated and the conclusions it reached on the basis of the circumstances of the audit.

Basis of evaluation?

Are carrying amounts of the property mortgaged and encumbered by indebtedness disclosed?

Are details of sale and leaseback transactions during the period disclosed?

Is the carrying amount of property not a part of the operating plantfor example, idle or held for investment or salesegregated?

Has consideration been given to the disclosure of fully depreciated capital assets still in use and capital assets not presently in use?