Engagement Performance Case Study

2.8 Engagement Performance
PCAOB
.17 Policies and procedures should be established to provide the firm with reasonable assurance that the work performed by engagement personnel meets applicable professional standards, regulatory requirements, and the firm’s standards of quality.
.18 Policies and procedures for Engagement Performance encompass all phases of the design and execution of the engagement. To the extent appropriate and as required by applicable professional standards, these policies and procedures should cover planning, performing, supervising, reviewing, documenting, and communicating the results of each engagement. These policies and procedures also should address engagement quality reviews pursuant to PCAOB Auditing Standard No.

Such policies and procedures should include the following:
a. Matters relevant to promoting consistency in the quality of engagement performance.
b. Supervision responsibility.
c. Review responsibilities
.36 The firm’s review responsibility policies and procedures should be determined on the basis that suitably experienced engagement team members, which may include the engagement partner, review work performed by other engagement team members.
Consultation
.37 The firm should establish policies and procedures designed to provide it with reasonable assurance that
a. Appropriate consultation takes place on difficult or contentious issues;
b. Sufficient resources are available to enable appropriate consultation to take place;
c. The nature and scope of such consultations are documented and are agreed upon by both the individual seeking consultation and the individual consulted;

Discussion of significant issues with the engagement partner;
b. Reading the financial statements or other subject matter information and the proposed report;
c. Review of selected engagement documentation relating to significant judgments that the engagement team made and the related conclusions it reached; and
d. Evaluation of the conclusions reached in formulating the report and consideration of whether the proposed repot is appropriate.
.42 The firm should establish policies and procedures to address the appointment of engagement quality control reviewers and to establish their eligibility through
a. The technical qualifications required to perform the role, including the necessary experience and authority, and
b. The degree to which an engagement quality control reviewer can be consulted on the engagement without compromising the reviewer’s objectivity.
.43 The firm should establish policies and procedures designed to maintain the objectivity of the engagement quality control reviewer. Such policies and procedures should provide that although the engagement quality control reviewer is not a member of the engagement team, the engagement quality control reviewer should satisfy the independence requirements relating to the engagements reviewed. Accordingly, such policies and procedures should provide that the engagement quality control