Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p12
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 12/31)
Character Range: 41288–44703

control review should be performed; and  (Ref: Para. A41)

(c)                Require an engagement quality control review for all engagements, if any, meeting the criteria established in compliance with subparagraph 35(b) of this Standard.

36.               The firm shall establish policies and procedures setting out the nature, timing and extent of an engagement quality control review.  Such policies and procedures shall require that the engagement report not be dated until the completion of the engagement quality control review.  (Ref: Para. A42‑A43)

37.               The firm shall establish policies and procedures to require the engagement quality control review to include:

(a)                Discussion of significant matters with the engagement partner;

(b)                Review of the financial report or other subject matter information and the proposed report;

(c)                Review of selected engagement documentation relating to significant judgements the engagement team made and the conclusions it reached; and

(d)                Evaluation of the conclusions reached in formulating the report and consideration of whether the proposed report is appropriate.  (Ref: Para. A44)

38.               For audits of financial reports of listed entities, the firm shall establish policies and procedures to require the engagement quality control review to also include consideration of the following:

(a)                The engagement team's evaluation of the firm's independence in relation to the specific engagement;

(b)                Whether appropriate consultation has taken place on matters involving differences of opinion or other difficult or contentious matters, and the conclusions arising from those consultations; and

(c)                Whether documentation selected for review reflects the work performed in relation to the significant judgements made and supports the conclusions reached.  (Ref: Para. A45‑A46)

Criteria for the Eligibility of Engagement Quality Control Reviewers

39.               The firm shall establish policies and procedures to address the appointment of engagement quality control reviewers and establish their eligibility through:

(a)                The technical qualifications required to perform the role, including the necessary experience and authority; and  (Ref: Para. A47)

(b)                The degree to which an engagement quality control reviewer can be consulted on the engagement without compromising the reviewer's objectivity.  (Ref: Para. A48)

40.               The firm shall establish policies and procedures designed to maintain the objectivity of the engagement quality control reviewer.  (Ref: Para. A49‑A51)

41.               The firm's policies and procedures shall provide for the replacement of the engagement quality control reviewer where the reviewer's ability to perform an objective review may be impaired.

Documentation of the Engagement Quality Control Review

42.               The firm shall establish policies and procedures on documentation of the engagement quality control review which require documentation that:

(a)                The procedures required by the firm's policies on engagement quality control review have been performed;

(b)                The engagement quality control review has been completed on or before the date of the report; and

(c)                The reviewer is not