New standards proposed by the International Auditing and Assurance Standards Board (IAASB) are designed to ensure that engagement quality reviews continue to be robust and support high-quality engagements.
The IAASB is proposing changes that would include:
- Altering the eligibility criteria to perform an engagement quality review.
- Changes related to the engagement quality reviewer’s performance and documentation.
- Strengthening of the selection of engagements for review.
The proposed changes are explained in the following documents:
- An overall explanatory memorandum, The IAASB’s Exposure Drafts for Quality Management at the Firm and Engagement Level, Including Engagement Quality Reviews.
- Proposed International Standard on Quality Management 1, Quality Management for Firms That Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.
- Proposed International Standard on Quality Management 2, Engagement Quality Reviews.
- Proposed International Standard on Auditing 220 (Revised), Quality Management for an Audit of Financial Statements.
Comments are due by 1 July, and the IAASB is requesting that responses be made separately to each of the exposure drafts and the overall explanatory memorandum.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is FM magazine’s editorial director.