Building a better audit – New standard requires additional quality review

Description

Abstract: Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 7, Engagement Quality Review (AS7), requires more robust concurring or second partner reviews of audit engagements and interim reviews. This article lists specific items that engagement quality reviews are expected to evaluate, and explains documentation requirements. Although the PCAOB has made an effort to avoid turning concurring reviews into second audits, public companies need to prepare for some slight changes in the audit process.