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Chapter 53 4

For listed entity audits, the EQCR should also consider:

 Independence of the engagement team.

 Whether appropriate consultation has taken place on contentious matters or
differences of opinion.

 Whether documentation reflects the work performed in relation to significant
judgments.

Eligibility criteria

The engagement quality control reviewer:

 should have the technical qualifications to perform the role, including the
necessary experience and authority, and

 should be objective. To be objective the reviewer should not be selected by the
engagement partner and should not participate in the engagement.

Note: An engagement quality control reviewer may also be referred to as an
independent review partner.

Monitoring

Quality control policies alone do not ensure good quality work. They must be
implemented effectively. Therefore the firm must evaluate:

 Adherence to professional standards and regulatory/legal requirements.

 Whether quality control procedures have been implemented on a day-to-day
basis.

 Whether the firm's quality control policies and procedures are effective so that
reports issued by the firm are appropriate in the circumstances.

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