Quality Management at Engagement Level - ISA 220
The objectives of the project are to:
(a) Propose revisions to ISA 220 to strengthen aspects of quality management for individual engagements by focusing on the identification, assessment and response to quality risks in a broad range of engagement circumstances.
(b) Propose consequential amendments to other standards that may be necessary as a result of revisions to ISA 220.
(c) Determine whether non-authoritative guidance and support tools should be developed by the IAASB or others to supplement the revisions or new standard(s).
MEETING HIGHLIGHTS - DECEMBER 2018
The Board discussed the requirements that address firm policies or procedures, the role of the engagement partner vis-à-vis other members of the engagement team and the difference between the usages of the phrases “the auditor shall determine” and “the auditor shall be satisfied.” The Board also discussed how best to clarify the requirement addressing communications from the firm about the firm’s monitoring and remediation process.
After making amendments in response to the Board’s comments received during the meeting, the Board approved the proposed Exposure Draft for public exposure. The ED will be issued in early February 2019 for comment by July 1, 2019.