In short
Firms that perform audits, reviews, compilations or other attest work under American Institute of Certified Public Accountants standards must undergo a peer review of their quality management every 3 years.
Key takeaways
- Firms that perform audits get a system review; those doing only reviews or compilations get an engagement review.
- Reports are rated pass, pass with deficiencies or fail.
- Public company audit work is inspected by the Public Company Accounting Oversight Board instead.
Where it's tested
AUD: Engagement Acceptance & Quality Management — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Before accepting a new audit engagement, who is responsible for initiating communication with the predecessor auditor, and what permission is required?