PSA 220 Flashcards
It is only for audits of FS of listed entities and those other engagements
Engagement quality control review
If the engagement partner obtains information that would have caused the firm to decline the audit engagement had the information been available earlier then,
The engagement partner shall communicate that information promptly to the firm, so that the firm and the engagement partner can take the necessary action
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
On or before the date of the auditor’s report
Engagement quality control reviewer
Shall perform an objective evaluation of the significant judgments made by the ET, and the conclusions reached in formulatibg the auditor’s report
If differences of opinion arise within the ET, with those consulted (or where applicable), between the EP the engagement quality control reviewer
The ET shall follow the firm’s policies and procedures for dealing with and resolving differences of opinion
An individual outside the firm with the competence and capabilities to act as an EP
Suitably qualified external person
Any individual with authority to bind the firm with respect ti the performance of a professional services engagement
Partner
A process compromising an ongoing consideration and evaluation of the firm’s system of quality control
Monitoring
An entity whose shares, stock or devt are quoted or listed on a recognized stock exchange
Listed entity
Responsible for the AE and its performance
Engagement partner
To provide an objective evaluation, on or beforethe date if the auditor’s report
Engagement quality control review
All partners and staff performing the engagement, and any individuals engaged by the firm
Engagement team
It is only for audits of FS of listed entities
Engagement quality control review
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
Engagement quality control reviewer
May provide safeguards for the independence of public sector auditors
Statutory measures
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
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
It also includes a member using expertise in a specialized area of accounting or auditing
Engagement team
Addressing significant matters arising during the AE
Supervision
An example where it may be appropriate for the ET to consult outside the firm
Where the firm lacks appropriate internal resources
Allows the EP to identify situations in which an engagement quality control review is necessary
Remaining alert for changes
