Engagement Quality Reviews - ISQM 2


The objective of this project is enhancing the requirements and application material in relation to the firm’s engagement quality reviews (EQRs), including:

  • setting more robust criteria for firms to apply when determining which engagements should be subject to an EQR;
  • establishing the objective of an EQR;
  • clarifying the nature, timing and extent of the EQR; and
  • enhancing the requirements for the eligibility of the individuals who perform the review.

In doing so, consideration will also be given to maintaining the appropriate balance between the respective roles and responsibilities of the engagement quality reviewer and the engagement partner who retains overall responsibility for the engagement.



Project Stages

Board Papers

September 2019 December 2019 March 2020 April 2020 June 2020 September 2020

Board Minutes

September 2019 December 2019 March and April 2020 June 2020

CAG Papers

September 2019 March 2020 September 2020

CAG Minutes

September 2019 March 2020

Issued Document

Final Pronouncement Basis for Conclusions Fact Sheet: Introduction to ISQM 2 Conforming Amendments to ISAs and Related Material Arising from the Quality Management Projects


The ISQM 2 Task Force updated the Board about the IESBA Engagement Quality Reviewer (EQR) Task Force’s proposed revisions to the IESBA Code addressing the objectivity of EQRs. The Board agreed that the proposed revisions to the IESBA Code addressing the objectivity of appropriate reviewers align with the provisions relating to the objectivity of EQRs in proposed ISQM 2. The Board approved ISQM 2as a final standard, which will be effective on December 15, 2022. Once the Public Interest Oversight Board’s confirmation that due process was followed is received, the Board will formally release the standard.

The Board also received an update on the approval of the proposed revisions to the IESBA Code addressing the objectivity of engagement quality reviewers and acknowledged the coordination efforts between the two Boards.


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