An engagement quality review is carried out on audits of public interest entities and on other engagements the audit firm considers risky. The reviewer considers significant risks, materiality, key audit matters and the draft report.
The auditor's report cannot be dated and signed until this review is complete.
Related terms
Engagement partnerThe auditor who conducts the audit on behalf of the audit firm, is responsible for its results and signs the auditor's report.Key audit mattersMatters that, in the auditor's professional judgement, were of most significance in the audit of the current-period financial statements and are described separately in the report.Public interest entityEntities considered to be of public interest because of their business, size or number of stakeholders, and subject to stricter audit rules.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: October 22, 2026 · This definition is for general information only.