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Engagement Quality Control Review (EQCR) and Hot File Reviews

These reviews are undertaken before the audit partner signs the audit report.

Hot file reviews are similar in nature to cold file reviews, there are two key considerations, to get the most out of them the audit file needs to be as finalised as it can be, also time needs to be allowed for the findings of the hot file review to be appropriately actioned prior to signing the audit report.

An Engagement Quality Control Review (EQCR) are effectively a ‘focused’ hot file review which concentrates on significant judgements made and conclusions reached in formulating the auditor’s report. For example an EQCR may be limited to reviewing the going concern status of the client or reviewing whether adequate consideration has been given to an ethical issue. These type of reviews may be a response to risk, to comply with the requirements of the FRC’s Ethical Standard or the requirements of a regulator. It will usually be appropriate for the review to happen in two stages, a review of the planning, then a second review just before the assignment is finalised.

These types of reviews can also be taken on other types of assurance engagement and accountancy files.

At the end of each review, we will discuss our findings with you and issue you with a report which documents our findings, recommendations and conclusion.

We appreciate that this type of review is very time sensitive and will make every effort to meet your deadlines.

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