Proposal to ensure that engagement quality reviews continue to be robust and effectively support high-quality audits and other engagements, the IAASB has proposed various enhancements to engagement quality reviews. This includes a new proposed standard on engagement quality reviews that includes enhancements regarding: the eligibility criteria to perform the engagement quality review; and the engagement quality reviewer’s performance and documentation.
ACCA and CA ANZ joint response supports the IAASB’s efforts to continuously improve audit quality. How audit firms manage audit quality is a key component to achieving audit quality.
However, as stated in our submission on ISQM 1, any changes to the process by which firms manage quality, including engagement quality reviews 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 quality reviewer and how engagement quality reviews should be performed.
To read in full, please download the consultation response.