Engagement Quality Review

“... an evaluation of the significant judgments made by the engagement team and the related conclusions reached in forming the overall conclusion on the engagement and in preparing the engagement report.” AS 1220

A passion for quality

Qualifications: Competence AS1220.05

We possess the level of knowledge and competence related to accounting, auditing, and financial reporting required to serve as the engagement partner on the engagement under review:

Over 10 years of the PCAOB inspections of domestic and global issuer-audits

Over 15 years of audit experience in public accounting with each of the Big Four firms in the U.S.A. and globally

Extensive technical experience in US GAAP and PCAOB standards

International Financial Reporting Standards (gained “IFRS Certification” from The Institute of Chartered Accountants in England and Wales in 2011)

Proven ability to manage multiple assignments, while meeting tight deadlines.

Qualifications: Independence AS1220.06

We are independent of the audit client, perform the engagement quality review with integrity, and maintain objectivity in performing the review.

We offer comprehensive solution for engagement quality reviews in full compliance with PCAOB AS1220.10

Evaluate the significant considerations

The firm’s recent engagement experience with the audit client and risks identified in connection with the firm’s client acceptance and retention process,
The audit client’s business, recent significant activities, and related financial reporting issues and risks, and
The judgments made about materiality and the effect of those judgments on the engagement strategy.

Evaluate audit responses to

Significant risks identified by the engagement team, including fraud risks, and
Other significant risks identified by the engagement quality reviewer through performance of the procedures required by AS1220.

Evaluate the significant judgments about

(1) The materiality and disposition of corrected and uncorrected identified misstatements and

(2) The severity and disposition of identified control deficiencies.

As engagement quality reviewer we:

Review the engagement team’s evaluation of the firm’s independence in relation to the engagement.
Review the engagement completion document.
Review the financial statements, management’s report on internal control, and the related engagement report.
Read other information in documents containing the financial statements to be filed with the SEC”.
Evaluate whether appropriate consultations have taken place on difficult or contentious matters.
Evaluate whether appropriate matters have been communicated, or identified for communication, to the audit committee.
Evaluate the engagement team’s determination, communication, and documentation of critical audit matters.

Evaluation of Engagement Documentation AS1220.11

Evaluate whether the engagement documentation:

Indicates that the engagement team responded appropriately to significant risks, and
Supports the conclusions reached by the engagement team with respect to the matters reviewed.

Concurring Approval of Issuance AS1220.12

We provide concurring approval of issuance only if, after performing our review with due professional care as required by AS1220, we are not aware of a significant engagement deficiency.

A significant engagement deficiency in an audit exists when:

The engagement team failed to obtain sufficient appropriate evidence in accordance with the standards of the PCAOB,
The engagement team reached an inappropriate overall conclusion on the subject matter of the engagement,
The engagement report is not appropriate in the circumstances, or
The firm is not independent of its client

“A well-performed engagement quality review (“EQR”) can serve as an important safeguard against erroneous or insufficiently supported audit opinions and, accordingly, can contribute to audit quality.”

PCAOB Release No. 2008-002

February 26, 2008