Document ID: chunk:federal_register_of_legislation:F2023C01116:body:0:p10
Version: federal_register_of_legislation:F2023C01116
Segment Type: other
Provision Reference: 
Character Range: 27383–30509

Quality Reviewers (Ref: Para. 17)

A1.             Competence and capabilities that are relevant to an individual's ability to fulfill responsibility for the appointment of the engagement quality reviewer may include appropriate knowledge about:

           * The responsibilities of an engagement quality reviewer;

           * The criteria in paragraphs 18 and 19 regarding the eligibility of engagement quality reviewers; and

           * The nature and circumstances of the engagement or the entity subject to an engagement quality review, including the composition of the engagement team.

A2.             The firm's policies or procedures may specify that the individual responsible for the appointment of engagement quality reviewers not be a member of the engagement team for which an engagement quality review is to be performed. However, in certain circumstances (e.g., in the case of a smaller firm or a sole practitioner), it may not be practicable for an individual other than a member of the engagement team to appoint the engagement quality reviewer.

A3.             The firm may assign more than one individual to be responsible for appointing engagement quality reviewers. For example, the firm's policies or procedures may specify a different process for appointing engagement quality reviewers for audits of listed entities than for audits of non-listed entities or other engagements, with different individuals responsible for each process.

Eligibility of the Engagement Quality Reviewer (Ref: Para. 18)

A4.             In some circumstances, for example, in the case of a smaller firm or a sole practitioner, there may not be a partner or other individual in the firm who is eligible to perform the engagement quality review. In these circumstances, the firm may contract with, or obtain the services of, individuals external to the firm to perform the engagement quality review. An individual external to the firm may be a partner or an employee of a network firm, a structure or an organisation within the firm's network, or a service provider. When using such an individual, the provisions in ASQM 1 addressing network requirements or network services or service providers apply.

Eligibility Criteria for the Engagement Quality Reviewer

Competence and Capabilities, Including Sufficient Time (Ref: Para. 18(a))

A5.             ASQM 1 describes characteristics related to competence, including the integration and application of technical competence, professional skills, and professional ethics, values and attitudes.[7] Matters that the firm may consider in determining that an individual has the necessary competence to perform an engagement quality review include, for example:

           * An understanding of AUASB standards and applicable legal and regulatory requirements and of the firm's policies or procedures relevant to the engagement;

           * Knowledge of the entity's industry;

           * An understanding of, and experience relevant to, engagements of a similar nature and complexity; and

           * An understanding of the responsibilities of the engagement quality