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

Under ISA 220 (Revised), which of the following best describes the engagement partner's responsibility for direction, supervision and review of the audit work?

The engagement partner takes overall responsibility for managing and achieving quality on the audit. That includes setting the nature, timing and extent of direction, supervision and review, and personally reviewing critical areas of judgement. It does not require reviewing every working paper, nor can it be fully delegated.

  1. AReview responsibility may be delegated entirely to the manager if the partner has signed the engagement letter
  2. BThe partner must personally review all audit working papers
  3. CThe partner must take overall responsibility for managing and achieving quality, including determining the nature, timing and extent of direction, supervision and review in line with the firm's policies, and reviewing critical areas of judgementCorrect
  4. DThe partner is responsible only for the final audit opinion; quality of the team's work is the firm's responsibility

Explanation

ISA 220 (Revised) makes the engagement partner responsible for overall quality on the engagement, including appropriate direction, supervision and review, with review of significant matters and significant judgements. It does not require personal review of all working papers, and review cannot be wholly delegated. Responsibility is not limited to the opinion or shifted to the firm.

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