3 Planning preliminary considerations

1.2Engagement quality control (EQC) review

In accordance with ISA 220, the firm has set out criteria against which audits should be evaluated to determine whether an EQC review will need to be carried out. The criteria includes all listed audit clients and other clients (see part 5 of this manual) based on risk.
At the appointment stage of planning, the Engagement Partner considers whether such an EQC review is needed for the client and answers point 5 on the B11 planning checklist accordingly.
The purpose of this review is to provide an objective evaluation of: the significant judgements made by the audit team; and the conclusions reached in forming the audit opinion.	220.20
Our firm has established policies and procedures setting out:	ISQC1.36, 37 & 39
the nature, timing and extent of the review; who is eligible to carry out the review; and what needs to be recorded by the EQC reviewer.
There are additional requirements for audits of listed entities which are set out in ISA 220 and ISQC 1. Audits of all listed entities require an EQC review to be performed and rotation of the Engagement Partner and individuals responsible for the EQC review as per ethical requirements.
Our procedures require the EQC reviewer to complete form B14 at the planning and A21-2 at the completion stage of the audit. As with other forms, the space on the right-hand side of this schedule can be used to record all the results of such procedures or as a summary of information on supporting schedules.