backOn October 12, 2023, the PCAOB staff released a report containing observations from the staff’s inspections on the performance of engagement quality reviews (“EQRs”). The report notes that the PCAOB staff has observed increasing rates of audit deficiencies related to EQRs and highlights that the percentage of PCAOB-inspected firms with at least one comment form that includes an EQR deficiency has increased from 37% in 2020 to 42% in 2022. The report also lists “good practices” for auditors to follow to avoid EQR deficiencies, including implementing programs to monitor workloads to ensure that partners assigned as EQR reviewers have the requisite time and experience to complete their assigned EQRs.
The report is available here.