COPYRIGHT NOTICE — This document is intended for internal use. It cannot be distributed to or reproduced by third parties without prior written permission from the Copyright Coordinator for the Office of the Auditor General of Canada. This includes email, fax, mail and hand delivery, or use of any other method of distribution or reproduction. CPA Canada Handbook sections and excerpts are reproduced herein for your non-commercial use with the permission of The Chartered Professional Accountants of Canada (“CPA Canada”). These may not be modified, copied or distributed in any form as this would infringe CPA Canada’s copyright. Reproduced, with permission, from the CPA Canada Handbook, The Chartered Professional Accountants of Canada, Toronto, Canada.
1163 Quality reviewer: minimum documentation requirements
Sep-2015
Overview
This section outlines the minimum documentation requirements for a quality reviewer assigned to an assurance engagement. It is important that the audit file contain evidence that the quality review was performed according to Office policy and required procedures, that the procedures were performed on or before the date of the assurance engagement report, and that there were no unresolved matters that would cause the reviewer to believe that the significant judgments the engagement team made and the conclusions it reached were not appropriate.
This section outlines the minimum documentation expected as evidence of a quality review.
CPA Canada Assurance Standards
|
Office |
Annual Audit |
Performance Audit, Special Examination, and Other Assurance Engagements |
|
CSQC 1.42 The firm shall establish policies and procedures on documentation of the engagement quality control review which require documentation that: (a) The procedures required by the firm's policies on engagement quality control review have been performed; (b) The engagement quality control review has been completed on or before the date of the report; and (c) The reviewer is not aware of any unresolved matters that would cause the reviewer to believe that the significant judgments the engagement team made and the conclusions it reached were not appropriate. |
CAS 220.25 The engagement quality control reviewer shall document, for the audit engagement reviewed, that: (a) The procedures required by the firm's policies on engagement quality control review have been performed; (b) The engagement quality control review has been completed on or before the date of the auditor's report; and (c) The reviewer is not aware of any unresolved matters that would cause the reviewer to believe that the significant judgments the engagement team made and the conclusions it reached were not appropriate. |
CSAE 3001.40 For those engagements, if any, for which a quality control review is required by law or regulation or for which the firm has determined that an engagement quality control review is required: (a) The engagement partner shall take responsibility for discussing significant matters arising during the engagement with the engagement quality control reviewer, and not date the assurance report until completion of that review; |
OAG Policy
The quality reviewer shall document the following for the assurance engagement reviewed:
- that the minimum review procedures from the Office policy concerning quality reviewer responsibilities have been performed,
- that the engagement quality control review has been completed on or before the date of the assurance engagement report, and
- that the quality reviewer is not aware of any unresolved matters that would cause the quality reviewer to believe that the significant judgments the engagement team made and the conclusions it reached were not appropriate. [Nov-2011]
OAG Guidance
Documentation of the engagement quality control review
The documentation of the engagement quality control review should demonstrate that the quality review has performed and completed the minimum review set out in OAG Audit 3063 Quality reviewer responsibilities before the date of the engagement report.
Documentation should also demonstrate that the quality reviewer is not aware of any unresolved matters within the engagement team that would cause him or her to believe that the significant matters, including identified risks and significant judgments made and the conclusions reached by the engagement team, were not appropriate.
The requirements for providing evidence of the 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 quality reviewer is satisfied with the matters referred to in the minimum review requirements. Quality reviewer involvement also includes timely discussion with the engagement leader.
The quality reviewer exercises professional judgement in considering whether a review of additional documentation is warranted, depending on the circumstances of the particular engagement.
Where matters are not resolved to the quality reviewer's satisfaction, the assurance engagement report should not be dated until the matter is resolved according to the processes established in OAG Audit 3082 Resolution of differences of opinion.
The engagement leader ensures that the assurance engagement file includes sufficient documentation to demonstrate that all matters raised by the quality reviewer were resolved before the date of the assurance report.
Evidence of the quality reviewer's involvement should be clear from the documentation and sign-off of the audit procedure steps.