The heat is on
If the question of whether to opt for a hot file review, a formal consultation or an engagement quality control review leaves you feeling spoiled for choice, relax. Andy Holton clarifies the differences and explains when and why these reviews are required.
What is audit for? Who is it intended to protect? Will the European Commission’s proposed reforms have a positive impact on audit quality? Does the complexity of IFRS have a negative impact on audit quality?
The audit profession is not short of big questions on audit quality. But while discussions on these rumble on, most practitioners have to focus on some of the smaller (though no less important) questions in their endless quest to ensure high-quality audits. So what is the difference between a hot file review and an engagement quality control review (EQCR)? Are hot file reviews and second partner reviews the same? When, and also why, should a formal consultation be conducted?