Engagement quality review: insights from the academic literature

Abstract

Purpose -The objective of this research is to identify areas where audit research can assist the Public Company Accounting Oversight Board (PCAOB) in its deliberation of the auditing standard on engagement quality (EQ) review required by the Sarbanes-Oxley Act of 2002. Design/methodology/approach -The approach used in this paper is a review of the literature. Findings -The paper links academic research on EQ review to issues raised by the PCAOB. It also identifies questions for future research. Originality/value -The academic research reviewed in this paper provides important information to the PCAOB staff as it considers EQ review.

Audit Quality Indicators: Insights from the Academic Literature

“…However, higher levels of audit review, including concurring partner reviews, help to reduce these biases (Ayers and Kaplan 2003;Woods and Jacobs 2010). Finally, the medium by which a review is conducted (electronic versus face-to-face) (Brazel et al 2004;Agoglia et al 2010) and the 17 See Epps and Messier (2007) and Schneider and Messier (2007) for reviews related to engagement quality reviews, i.e., concurring partner reviews. See Bedard et al (2008) for a review of firm-level risk monitoring and control, e.g., client acceptance/continuance procedures, independence, consultation units, etc.…”

Audit Quality: Insights from the Academic Literature

“… See Epps and Messier (2007) andSchneider and Messier (2007) for reviews related to engagement quality reviews, i.e., concurring partner reviews. SeeBedard et al (2008) for a review of firm-level risk monitoring and control, e.g., client acceptance/continuance procedures, independence, consultation units, etc.…”

Opportunities for Task‐Level Research within the Audit Process

“…This part of the audit is intended to be the final quality control check. Schneider & Messier (2007) provide a detailed review of this research. I am not familiar with any research on EQRs in Europe.…”