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The proposed SQCS defines the engagement quality control review (often referred to as a concurring review), and requires firms to establish criteria to determine which engagements are to be subject to an engagement quality control review. It also provides guidance on policies and procedures for performing engagement quality control reviews. An engagement quality control review should include a review of the financial statements or other subject matter information and the report, and, in particular, consideration of whether the report is appropriate. An engagement quality control review also should include either (i) a discussion with the practitioner-in-charge, (ii) a review of selected working papers relating to the significant judgments the engagement team made and the conclusions they reached, or (iii) both discussion and review. The decision to review selected working papers in addition to, or instead of, discussion with the practitioner-incharge depends on the complexity of the engagement and the risk that the report might not be appropriate in the circumstances.
ed06-07-28-Firms system of quality control, July 28, 2006
Accounting -- Quality control; Auditing -- Quality control
Accounting | Taxation
American Institute of Certified Public Accountants. Auditing Standards Board, "Proposed statement on quality control standards : A Firm's system of quality control;Firm's system of quality control" (2006). Statements of Position. 329.