IAASB aims to enhance engagement quality reviews

By Ken Tysiac

New 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 IAASB is proposing changes that would include:

  • Altering the eligibility criteria to perform an engagement quality review.
  • Changes related to the engagement quality reviewer’s performance and documentation.
  • 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.
  • 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.
  • Proposed International Standard on Quality Management 2, Engagement Quality Reviews.
  • Proposed International Standard on Auditing 220 (Revised), Quality Management for an Audit of Financial Statements.

Comments are due by July 1, and the IAASB is requesting that responses be made separately to each of the exposure drafts and the overall explanatory memorandum.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.