Standards proposed by the International Auditing and Assurance Standards Board (IAASB) are designed to ensure that engagement quality reviews continue to be robust and support high-quality engagements.
The changes would include altering the eligibility criteria to perform an engagement quality review; changes related to the engagement quality reviewer's performance and documentation; and strengthening of the selection of engagements for review.
The proposed changes are explained in the following documents:
- An overall explanatory memorandum, The IAASB's Exposure Drafts for Quality Management at the Firm and Engagement Level, Including Engagement Quality Reviews (available at ifac.org).
- Proposed International Standard on Quality Management 1, Quality Management for Firms That Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements (available at ifac.org).
- Proposed International Standard on Quality Management 2, Engagement Quality Reviews (available at ifac.org).
- Proposed International Standard on Auditing 220 (Revised), Quality Management for an Audit of Financial Statements (available at ifac.org).