Audit documentation of majority of the files reviewed did not provide evidence relating to the implementation of quality control policies and procedures by audit firms designed to ensure that the individual audits are conducted in accordance with Sri Lanka Auditing Standards.
Most of the audits revealed absence of documentation on evaluating expert’s work even though an expert’s assistance was obtained in making significant accounting estimates.
Improper wording in the opinion paragraphs, not evaluating qualifications included in the subsidiary audit report prior to incorporation in the audit opinion on the consolidated financial statements and not evaluating the appropriateness of the going concern assumption were some of the salient findings in the conduct of the audit reviews.