Document ID: chunk:federal_register_of_legislation:F2020C00630:reg:25:p24
Version: federal_register_of_legislation:F2020C00630
Segment Type: reg
Provision Reference: reg 25 (pt 24/31)
Character Range: 77459–80643

appropriate in the circumstances.  The performance of an engagement quality control review does not reduce the responsibilities of the engagement partner.

Engagement Quality Control Review of a Listed Entity (Ref: Para. 38)

A45.         Other matters relevant to evaluating the significant judgements made by the engagement team that may be considered in an engagement quality control review of an audit of a financial report of a listed entity include:

           * Significant risks identified during the engagement and the responses to those risks.

           * Judgements made, particularly with respect to materiality and significant risks.

           * The significance and disposition of corrected and uncorrected misstatements identified during the engagement.

           * The matters to be communicated to management and those charged with governance and, where applicable, other parties such as regulatory bodies.

    These other matters, depending on the circumstances, may also be applicable for engagement quality control reviews for audits of the financial reports of other entities, as well as reviews of financial reports, audits and reviews of other financial information, other assurance engagements and related services engagements.

Considerations specific to public sector audit organisations

A46.         Although not referred to as listed entities, as described in paragraph A16, certain public sector entities may be of sufficient significance to warrant performance of an engagement quality control review.

Criteria for the Eligibility of Engagement Quality Control Reviewers

Sufficient and Appropriate Technical Expertise, Experience and Authority (Ref: Para. 39(a))

A47.         What constitutes sufficient and appropriate technical expertise, experience and authority depends on the circumstances of the engagement.  For example, the engagement quality control reviewer for an audit of a financial report of a listed entity is likely to be an individual with sufficient and appropriate experience and authority to act as an audit engagement partner on audits of financial reports of listed entities.

Consultation with the Engagement Quality Control Reviewer (Ref: Para. 39(b))

A48.         The engagement partner may consult the engagement quality control reviewer during the engagement, for example, to establish that a judgement made by the engagement partner will be acceptable to the engagement quality control reviewer.  Such consultation avoids identification of differences of opinion at a late stage of the engagement and need not compromise the engagement quality control reviewer's eligibility to perform the role.  Where the nature and extent of the consultations become significant, the reviewer's objectivity may be compromised unless care is taken by both the engagement team and the reviewer to maintain the reviewer's objectivity.  Where this is not possible, another individual within the firm or a suitably qualified external person may be appointed to take on the role of either the engagement quality control reviewer or the person to be consulted on the engagement.

Objectivity of the Engagement Quality Control Reviewer