Revised ISA 220, Quality Management for an audit of financial statements

Information

The revised ISA 220 integrates the new quality management concepts in ISQM 1 into the audit processes performed for each engagement.

The standard modernizes the approach to quality management and requires the engagement partner and engagement team to be proactive in managing and achieving quality.

Specific responsibilities of the engagement partner identified as:

1. Managing and achieving quality at the engagement level.
2. Determining the nature, timing and extent of direction, supervision, and review, which is where the scalability of the provisions apply due to the circumstances of the audit.
3. Being satisfied that involvement has been sufficient and appropriate to provide basis for taking overall responsibility.

The updated definition of the engagement team includes all partners and staff performing the audit engagement, and any other individuals who perform audit procedures on the engagement.  The auditor’s external expert and internal auditors who provide direct assistance on an engagement are excluded from the definition.

Read more on the fact sheet here

Implementation date of the revised standards is 15 December 2022.