Proposed ISA 220 (Revised) will improve the management of quality at the engagement level for audits of financial statements. This memorandum should be read in conjunction with the overall explanatory memorandum, The IAASB’s Exposure Drafts for Quality Management at the Firm and Engagement Level, Including Engagement Quality Reviews.
ACCA and CA ANZ joint response welcomes the opportunity to comment on Proposed International Standard on Auditing 220 (Revised) Quality Management for an Audit of Financial Statements (ED-220). It is important that the process for managing audit quality at the engagement level continuously evolves along with the management of audit quality at the firm level.
However, as stated in our submission on ED-ISQM 1, any changes to the processes by which firms manage quality, including engagement quality, must be evaluated in terms of benefits delivered balanced again the costs of implementation and ongoing maintenance by firms. We are generally supportive of the proposals to clarify the role of the engagement partner (EP) and other aspects of engagement quality management but have some concerns as addressed in our overall comments and specific responses.
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