An engagement quality review is a specified response the firm designs and implements to address quality risks. An EQ reviewer performs the EQ review at the engagement level on behalf of the firm. SQMS No. 1, A Firm’s System of Quality Management, requires that the firm determine when an engagement quality review is an appropriate response to quality risks.
SQMS Engagement Quality Reviews (SQMS No. 2) addresses:
• the appointment and eligibility of the EQ reviewer and
• performance of EQ reviews.
The changes are intended to respond to issues and challenges with the requirements for EQ reviews in SQMS No. 1 and the previous Statement on Quality Control Standards (SQCS) No. 8, A Firm’s System of Quality Control (QC sec. 10), and AU-C section 220, Quality Control for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards.
This is accomplished by:
• By creating one standard that contains the requirements for EQ reviews, and by making changes that clarify and strengthen aspects of those requirements for a more robust EQ review
• By revising requirements that focus on the objective evaluation of the significant judgments the engagement team makes and the conclusions reached./ul>
SQMS No. 2 is how this is accomplished by an engagement quality review. This session will address those requirements.
Who Should Attend
Professionals who need to be Knowledgeable and aware of the changes brought on by SQMS No. 1, No. 2., and No. 3., SSARS 26, and SAS 146.
Topics Covered
- Enhanced eligibility for EQ reviewers
- Cooling-off period before the engagement partner can serve as EQ reviewer
- Sufficient time to perform the EQ review
- Eligibility criteria for EQ reviewers
- Having competence, capabilities, including sufficient time, and appropriate authority
- Compliance with relevant ethical requirements
- Objectivity
- Independence
- Engagement quality reviewer’s responsibilities
- Performance and documentation requirements
- Significant judgments and significant matters, including the exercise of professional skepticism by the engagement team
Learning Objectives
- Understand, discuss, and apply the requirements and responsibilities of the new Quality Management standards and the Quality Management Standards for the Engagement Quality Reviewer for audits, reviews, and compilations.
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Auditing (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Pat Patterson
Cecil Patterson, (Pat), CPA, MBA, is an award-winning, nationally recognized author, speaker, and discussion leader for continuing education courses and numerous state societies. He has experience at the local and national CPA-firm level and as an adjunct university professor.
Pat holds an MBA from the University of North Florida and is a CPA and owner of the firm of Cecil Patterson, CPA. His firm provides, accounting, tax preparation and tax planning services, wealth management services, and consulting for businesses and other professional firms.
Pat has served on the AICPA Council, the FICPA Council, and the FICPA Educational Foundation Board of Trustees.