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

Harlow & Finch, an audit firm, is auditing Zentra Ltd, a listed company. The firm's policies under ISQM 1 require an engagement quality review for audits of listed entities. Which of the following is the engagement quality reviewer's primary role under ISQM 2?

The engagement quality reviewer's main role under ISQM 2 is to objectively evaluate the significant judgements made by the engagement team and the conclusions reached. The reviewer does not re-perform the audit, sign the report or approve fees, and does not replace the engagement partner's responsibility.

  1. ATo perform an objective evaluation of the significant judgements made by the engagement team and the conclusions reachedCorrect
  2. BTo re-perform the audit procedures carried out by the engagement team on key balances
  3. CTo sign the auditor's report jointly with the engagement partner
  4. DTo approve the audit fee and the composition of the engagement team

Explanation

ISQM 2 requires the EQR to objectively evaluate the significant judgements made by the engagement team and the conclusions reached in forming the audit opinion. The reviewer does not re-perform the audit or take over the partner's responsibility. Signing the report and setting fees are matters for the engagement partner and firm.

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