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1163 Engagement quality reviewer: minimum documentation requirements
Dec-2022
Overview
This section outlines the engagement quality reviewer’s responsibility for the documentation of the engagement quality review. It is important for the engagement file to contain evidence that the engagement quality review was performed according to Office policy and required procedures and that the review was completed on or before the date of the assurance engagement report.
This section outlines the minimum documentation expected as evidence for the performance of an engagement quality review.
OAG Policy
The engagement quality reviewer shall determine that the documentation of the engagement quality review is sufficient and based on the experienced auditor principle and shall determine that the documentation includes the following in the engagement file:
- that the minimum review procedures from the Office policy concerning engagement quality reviewer responsibilities have been performed,
- the notification to the engagement leader that the engagement quality review has been completed, and
- the date of completion of the engagement quality review. [Dec-2022]
OAG Guidance
Documentation of the engagement quality review
The engagement quality reviewer ensures that the engagement file includes sufficient documentation to enable an experienced auditor, having no previous connection with the engagement, to understand the nature, timing and extent of the engagement quality review procedures performed (OAG Audit 1111 Nature, purpose, and extent of audit documentation).
The documentation of the engagement quality review should demonstrate that the engagement quality review has performed and completed the minimum review set out in OAG Audit 3063 Engagement quality reviewer responsibilities, before the date of the engagement report.
The notification confirming that the engagement quality review has been completed and provided by the engagement quality reviewer to the engagement leader in accordance with OAG Audit 3063 should be included in the documentation of the engagement file.
The requirements for providing evidence of the engagement quality reviewer's involvement are the same in principle as the requirements for providing evidence of the engagement leader's review (OAG Audit 1162 Engagement leader review: minimum documentation requirements). Adequate evidence of involvement includes, as a minimum, a record that the engagement quality reviewer is satisfied with the matters referred to in the minimum review requirements. Engagement quality reviewer involvement also includes timely discussion with the engagement leader. Evidence of the engagement quality reviewer's involvement should be clear from the documentation and sign-off of working papers in the engagement file.
The engagement quality reviewer exercises professional judgement in considering whether a review of additional documentation is warranted, depending on the circumstances of the particular engagement.
When the engagement quality reviewer has concerns that the significant judgments made by the engagement team, or the conclusions reached, are not appropriate, the notification to the engagement leader in accordance with OAG Audit 3063 should be included in the documentation of the engagement file. The documentation of matters that are not resolved to the engagement quality reviewer's satisfaction should be documented in the engagement file in accordance with the policies and procedures outlined in OAG Audit 3082 Resolution of differences of opinion. If applicable, any notification related to differences of opinion, prepared and sent by the engagement quality reviewer in accordance with OAG Audit 3063, should also be included in the documentation of the engagement file.