PSA 220

Question 1

It is only for audits of FS of listed entities and those other engagements

Answer 1

Engagement quality control review

Question 2

If the engagement partner obtains information that would have caused the firm to decline the audit engagement had the information been available earlier then,

Answer 2

The engagement partner shall communicate that information promptly to the firm, so that the firm and the engagement partner can take the necessary action

Question 3

The engagement partner shall, through a review of the audit documentation and discussion with the engagement team, be satisfied that sufficient appropriate audit evidence has been obtained

Answer 3

On or before the date of the auditor’s report

Question 4

Engagement quality control reviewer

Answer 4

Shall perform an objective evaluation of the significant judgments made by the ET, and the conclusions reached in formulatibg the auditor’s report

Question 5

If differences of opinion arise within the ET, with those consulted (or where applicable), between the EP the engagement quality control reviewer

Answer 5

The ET shall follow the firm’s policies and procedures for dealing with and resolving differences of opinion

Question 6

An individual outside the firm with the competence and capabilities to act as an EP

Answer 6

Suitably qualified external person

Question 7

Any individual with authority to bind the firm with respect ti the performance of a professional services engagement

Answer 7

Partner

Question 8

A process compromising an ongoing consideration and evaluation of the firm’s system of quality control

Answer 8

Monitoring

Question 9

An entity whose shares, stock or devt are quoted or listed on a recognized stock exchange

Answer 9

Listed entity

Question 10

Responsible for the AE and its performance

Answer 10

Engagement partner

Question 11

To provide an objective evaluation, on or beforethe date if the auditor’s report

Answer 11

Engagement quality control review

Question 12

All partners and staff performing the engagement, and any individuals engaged by the firm

Answer 12

Engagement team

Question 13

It is only for audits of FS of listed entities

Answer 13

Engagement quality control review

Question 14

A partner, other person in the firm, suitably qualified external person, or a team made uo of such individuals, none of whom is part of the ET

Answer 14

Engagement quality control reviewer

Question 15

May provide safeguards for the independence of public sector auditors

Answer 15

Statutory measures

Question 16

The EP may identify a threat to independence regarding the audit engagement that safeguards may not be able to eliminate or reduce to an acceptable level

Answer 16

EP reports to the relevant person/s within the firm to determined appropriate action (like eliminating the activity or interest that creates the threat), or withdrawing from the AE

Question 17

It also includes a member using expertise in a specialized area of accounting or auditing

Answer 17

Engagement team

Question 18

Addressing significant matters arising during the AE

Answer 18

Supervision

Question 19

An example where it may be appropriate for the ET to consult outside the firm

Answer 19

Where the firm lacks appropriate internal resources

Question 20

Allows the EP to identify situations in which an engagement quality control review is necessary

Answer 20

Remaining alert for changes