PCAOB on Engagement Quality Review Flashcards

1
Q

What is the purpose of the PCAOB engagement quality review?

A

Evaluate the judgement and conclusions of the engagement team.

It requires engagement quality review & concurring approval of report issuance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

PCAOB requires engagement quality review and concurring approval of report issuance for…?

A

1) For an audit

2) For a review of interim financial information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is an “associated person”?

A

The engagement reviewer must be an “associated person” of the registered public accounting firm.

Qualification:

1) From within the firm (partner or equivalent)
2) From outside the firm (when compensated for performing the review)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the characteristics of a reviewer?

A
  • Independence
  • Competent
  • objectivity
  • integrity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the “cooling off” restriction for a reviewer?

A

Cannot have been the partner on either of 2 audits preceding the engagement under review

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does the quality review activities do?

A

Discussions with team
Review documentation- Sufficient to support procedures performed and conclusions reached. It should be included with other engagement documentation and must meet retention requirements (7 years)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the concurring approval of issuance?

A

Requirement.

The public firm is prohibited from giving permission to client to use report unless the reviewer has given a “concurring approval of issuance”

The reviewer cannot issue a concurring approval of issuance if there is any significant engagement deficiency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly