Skip to content

CS Professional · Compliance Management, Audit and Due Diligence · Peer Review and Quality Review

Reviewer Anita is performing an engagement quality control review for Narmada Infra Ltd. Which of the following best describes what the review ordinarily involves under SQC 1?

The review ordinarily involves discussion with the engagement partner, a review of the financial statements and the report (including whether the report is appropriate), and a review of selected working papers on significant judgments and conclusions. It is not a re-audit and does not shift the partner's responsibility.

  1. ARe-performing the entire audit and examining every working paper
  2. BDiscussion with the engagement partner, review of the financial statements and report, and review of selected working papers on significant judgmentsCorrect
  3. COnly checking that the audit fee has been approved by the board
  4. DTaking over the engagement partner's responsibility for the audit opinion

Explanation

SQC 1 describes the review as ordinarily involving discussion with the engagement partner, review of the financial statements or subject matter information and the report, and review of selected working papers relating to significant judgments and conclusions. It is not a full re-audit, and it does not reduce the engagement partner's responsibilities.

Did you get it right without looking?

One question tells you little. A timed set on Peer Review and Quality Review shows your real accuracy, how long you take and where you lose marks.

Practise Peer Review and Quality ReviewFree diagnostic mock

More Peer Review and Quality Review questions