of high fraud risk areas, group audits, procedures addressing going concern issues, and professional skepticism Inadequate documentation of audit works Insufficient supervision in certain high-risk
, such as Thailand and China, concern revenues. However, those in France are about depreciation and impairment of assets, while those in the US are about long-live assets and fair value. Discussion and
complex audit engagement which requires high judgment and skepticism to the partner or divisions with limited experiences, resulting in such partner or personnel in that division lacking an appropriate
firms did not concern over significant client’s issues before accept those clients. Example 1 : There was insufficient documentation regarding client acceptance evaluation. In addition, some evaluation
related to digital assets in the future. Significant and recurring deficiencies arising from the inspection of auditor’s engagement, e.g., revenue recognition, going concern and provisions of allowance for
, audits of revenue recognition based on the percentage of completion method, and assessments of the appropriateness of management’s use of going concern assumption. Our root cause analysis has revealed that
better results than that of previous year. This element, however, contains more key deficiencies than other ISQC1 elements and thus remains an area of key concern for the SEC. The inspection findings are
inappropriate exercising of professional skepticism. Our preliminary root cause analysis showed that each audit firm’s observations arose from different causes. For example, the absence of significant topics in
2. * KPMG 2564 Big 4 (partner) 23 24 4 4 * / professional skepticism 11 3. * KPMG 2563 - 2564 Big 4 15.60% 20.31% * / AQIs 4. * KPMG 2564 Big 4 (staff/ partner ratio) 17 : 1 25 : 1 (staff/ manager
% * / )*100 Signing Partner Engagement Partner EQCR 2 9 AQIs 2. * EY 2563 - 2564 Big 4 (partner) 27 24 5 4 * / professional skepticism 10 3. * EY 2563 - 2564 Big 4 27.33% 20.31% * / AQIs 4. * EY 2564 Big 4