Skip to content

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

Sharma & Bose's policy on appointing engagement quality control reviewers is being tested. Which combination reflects what the policy must use to establish eligibility under SQC 1?

Eligibility is established through the technical qualifications needed for the role, including necessary experience and authority, and through the extent to which the reviewer can be consulted on the engagement without compromising objectivity. Seniority, client approval or partner recommendation are not the stated criteria.

  1. ASeniority in the firm and the reviewer's personal relationship with the client
  2. BTechnical qualifications, including necessary experience and authority, and the degree of consultation possible without compromising objectivityCorrect
  3. COnly the reviewer's membership tenure and the size of the client
  4. DThe engagement partner's recommendation and the client's approval

Explanation

SQC 1 states eligibility is established through the technical qualifications required, including experience and authority, and the degree to which the reviewer can be consulted without compromising objectivity. Client approval or partner recommendation conflicts with objectivity.

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