Quality control for an assurance engagement




Quality control for an assurance engagement may comprise the following elements:

1.      Characteristics of the engagement partner.

2.      Assignment of the team.

3.      Responsibilities of the engagement partner.

4.      Engagement quality control review.

Consider each of the four elements.

                          1. Characteristics of the engagement partner.

               The engagement partner shall:

· Have competence in assurance skills and techniques developed through extensive training and practical application; and

·  Have sufficient competence in the underlying subject matter and its measurement or evaluation.

·   Be a member of a firm that applies ISQC 1, or other professional requirements

                2.  Assignment of the team.

Those persons who are to perform the engagement collectively should have the appropriate competence and capabilities to perform the engagement and enable an assurance report to be issued.

                      3.  Responsibilities of the engagement partner.

              The engagement partner should be responsible for:

  • Appropriate procedures being performed regarding the acceptance and continuance of    client relationships and engagements.
  • The engagement being planned and performed to comply with professional standards and applicable legal and regulatory requirements.
  • Reviews being performed in accordance with the firm’s review policies and procedures.
  • Appropriate engagement documentation being maintained to provide evidence of achievement of the practitioner’s objectives.
  • Appropriate consultation being undertaken by the engagement team on difficult or contentious matters.

4.   Engagement quality control review.

              For those engagements for which the control is required:

· The engagement partner shall take responsibility for discussing significant matters arising during             the engagement with the engagement quality control reviewer.

· The engagement quality control reviewer shall perform an objective evaluation which involves discussion of significant matters with the engagement partner, review of the subject matter information and the proposed assurance report, review of selected engagement documentation relating to the significant judgments the engagement team made, evaluation of the conclusions reached in formulating the assurance report.

 

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