i) Peer Review
This is a review of an audit firm‘s systems, procedures, and audit standards generally, conducted by another firm of comparable site and reputation. It‘s a review of a firm‘s complete set up by another firm and should be considered occasionally.
• Quality Control: peer review ensures a certain standard is achieved by an audit firm as a minimum, at least.
• Independence: The reviewing firm wants to confirm that the audit farm was working independent of its clients.
• Staff performance: To review the performance of audit staff and to assist them in improving their future performance.
• Weaknesses: To identify areas of weaknesses in the firm‘s procedures or applications thereof and to suggest solutions.
• Audit Opinion: To determine whether the scope and result of the audit work (audit evidence) is adequate to support the opinion as given in a particular audit.
• Industrial comparison: Review of a number of specially selected audits by the peer reviewers to check consistency of audit approach and application of a particular statement of standard accounting practice.