Acca aaa s21 Notes

3. Engagement quality control review (EQCR)
Public interest audits, such as the audit of listed companies, should undergo an 
Engagement Quality 
Control Review (EQCR)
. Here, an independent reviewer (normally another partner) will be appointed 
to perform an objective evaluation of the significant judgments made by the engagement team, and 
the conclusions reached in formulating the auditor’s report.
An audit firm should set criteria for other engagements, if any, that require an EQCR (eg entities in 
certain industries identified as high risk). An EQCR includes:
(1)
Discussion of significant matters with the engagement partner; 
(2)
Review of the financial statements and the proposed auditor’s report; 
(3)
Review of selected audit documentation relating to the significant judgments the engagement 
team made and the conclusions it reached; and 
(4)
Evaluation of the conclusions reached in formulating the auditor’s report and consideration of 
whether the proposed auditor’s report is appropriate.
September 2021 to June 2022 exams
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For audits of listed entities, the EQCR must also consider the following: 
(1)
The engagement team’s evaluation of the firm’s independence in relation to the audit 
engagement; 
(2)
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
(3)
Whether audit documentation selected for review reflects the work performed in relation to the 
significant judgments and supports the conclusions reached. 
An EQCR is an example of a