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

Under ISQM 1, which statement best describes the firm's responsibility for engagement partner accountability for quality on an individual audit?

The engagement partner is responsible for managing and achieving quality on the individual engagement, while the firm is responsible for designing, implementing and operating its system of quality management. The engagement quality reviewer gives an objective evaluation but does not replace the partner's responsibility.

  1. AThe engagement partner is responsible for managing and achieving quality on the engagement, while the firm remains responsible for the system of quality managementCorrect
  2. BOnly the firm's leadership is responsible for quality, and the engagement partner has no responsibility
  3. CThe engagement quality reviewer is solely responsible for the quality of the engagement
  4. DThe client's audit committee is responsible for the quality of the engagement

Explanation

ISA 220 (Revised) makes the engagement partner responsible for overall quality on the engagement, including direction, supervision and review, while ISQM 1 makes the firm responsible for its system of quality management. The EQR provides an objective evaluation but does not take over the partner's responsibility, and the audit committee does not own audit quality.

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