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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Quality management (firm and engagement level)

During the audit of Brightwell Group, an EQR is appointed. The engagement partner wants to date the auditor's report on 12 March. The EQR has not yet completed the review, but the partner says the review is a formality and the client needs the report urgently. What is the correct requirement?

The engagement partner must not date the auditor's report until the engagement quality reviewer has notified that the review is complete. Dating it earlier, even on grounds of urgency or because the review seems a formality, breaches ISQM 1 and ISQM 2 and undermines the review.

  1. AThe report may be dated 12 March provided the EQR completes the review within the following week
  2. BThe engagement partner must not date the auditor's report until the EQR has notified completion of the engagement quality reviewCorrect
  3. CThe EQR should date the auditor's report instead, because the review is outstanding
  4. DThe report may be dated if the engagement partner documents that the review is a formality

Explanation

ISQM 1 and ISQM 2 require that the engagement partner not date the auditor's report until the EQR has notified the partner that the review is complete. Completing the review after dating the report defeats its purpose. The EQR does not date the report, and urgency or a partner's judgement that it is a formality does not override the requirement.

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