Skip to content

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

Harlow & Dunmore, an audit firm, is auditing Keswick Foods plc, a listed entity. Under the firm's ISQM 1 policies, listed entity audits require an engagement quality review. Which of the following best describes the primary purpose of the engagement quality review under ISQM 2?

The engagement quality review is an objective evaluation of the engagement team's significant judgements and the conclusions reached in forming the opinion. It is not re-performance of the audit, nor does it transfer responsibility for engagement quality away from the engagement partner.

  1. ATo provide an objective evaluation of the significant judgements made by the engagement team and the conclusions reached in forming the audit opinionCorrect
  2. BTo re-perform the audit procedures carried out by the engagement team on high-risk areas
  3. CTo approve the audit fee and the engagement team's time budget before the report is issued
  4. DTo replace the engagement partner's responsibility for the overall quality of the audit

Explanation

ISQM 2 requires the engagement quality reviewer to perform an objective evaluation of significant judgements made by the engagement team and the conclusions reached. It is not a re-performance of the audit and does not remove the engagement partner's responsibility for quality. Fee approval is not part of the review.

Did you get it right without looking?

One question tells you little. A timed set on Quality management (firm and engagement level) shows your real accuracy, how long you take and where you lose marks.

Practise Quality management (firm and engagement level)Free diagnostic mock

More Quality management (firm and engagement level) questions