1. Quality Management at the Engagement Level Proposed ISA 220 (Revised)
Megan Zietsman, Task Force Chair
IAASB Meeting, New York, USA
Agenda Item 3
December 10, 2018

2. Introduction

3. Outreach and Feedback Received in Q4
Disposition of IAASB comments from September IAASB Meeting
Other input received from:
IOSCO Committee 1, Auditing Sub-Committee
IFIAR Standards Coordination Working Group
IESBA, through written comments
No significant matters
Forum of Firms
CEAOB
SMPC letter

4. Walk Through of Proposed ISA 220 (Revised)

5. Introduction, Objective, and Definitions
Proposed ISA 220 (Revised) – Agenda Item 3–A
Section
Paragraph(s)
Application Material
Introduction
1–7
A1–A15
Objective 8
None
Definitions 9
A16–A21
Proposed Changes from Written Comments
Para. A4 – Clarify how national requirements can be determined as at least as demanding as proposed ISQM 1
Para. A8 – Consider additional example

6. Proposed ISA 220 (Revised) – Agenda Item 3–A
Leadership Responsibilities for Managing and Achieving Quality on Audits
Proposed ISA 220 (Revised) – Agenda Item 3–A
Paragraph(s)
11–13
Application Material
A22–A30
Proposed Changes from Written Comments
Para. 11 – Make clear that the engagement partner’s (EP’s) responsibility is for the engagement environment
Para. 12 – Incorporate (c) into the lead in
Para. 13(b) – Clarify that the EP reviews selected documentation for the purpose of monitoring the work of assignees

7. Relevant Ethical Requirements, Including Independence Requirements
Proposed ISA 220 (Revised) – Agenda Item 4–A
Paragraph(s)
14–19
Application Material
A31–A42
Proposed Changes from Written Comments
Para. 16 – Consider reference to firm policies or procedures
Para. A38 – Delete in response to concern from IESBA

8. Proposed ISA 220 (Revised) – Agenda Item 3–A
Acceptance and Continuance of Client Relationships and Audit Engagements
Proposed ISA 220 (Revised) – Agenda Item 3–A
Paragraph(s)
20–22
Application Material
A43–A52
Proposed Changes from Written Comments
None significant

9. Proposed ISA 220 (Revised) – Agenda Item 3–A
Engagement Resources
Proposed ISA 220 (Revised) – Agenda Item 3–A
Paragraph(s)
23–26
Application Material
A53–A68
Proposed Changes from Written Comments
None significant

10. Engagement Performance – Direction, Supervision, and Review
Proposed ISA 220 (Revised) – Agenda Item 3–A
Paragraph(s)
27–31
Application Material
A69–A84
Proposed Changes from Written Comments
None significant

11. Other Sections
Section
Paragraph(s)
Application Material
Consultation 32
A85–A88
Engagement Quality Review 33
A89–A93
Differences of Opinion
34–35
A94–A95
Monitoring and Remediation 36
A96–A99
Proposed Changes from Written Comments
Para. 32(a)(ii) – Incorporate difficult or contentious matters into (ii)
Para. 33(a) – Change from “determine” to “be satisfied”
Para. 36 – Consider ET responsibilities for network/network firm results
Para. A95 – Remove first bullet at IESBA request

12. Taking Overall Responsibility, Documentation
Section
Paragraph(s)
Application Material
Taking Overall Responsibility 37
A100–A102
Documentation 38
A103–A105
Proposed Changes from Written Comments
Para. 37(a) – Change “issues” to “matters”
Para. 37(c) – Minor alignment with posted ISQM 2