|Effective Date||This standard currently is effective.|
|Applicability||Audit engagements and engagements to review interim financial information conducted pursuant to Public Company Accounting Oversight Board (PCAOB) standards.|
Significant engagement deficiency. An audit condition that exists when an engagement team does not obtain sufficient evidence, it reached an inappropriate conclusion on the subject matter, the engagement report is not appropriate, or the firm is not independent of its client.
Significant risk. A risk of material misstatement that is important enough to require special audit consideration.
PCAOB Auditing Standard 7 addresses the judgments made by an engagement team in forming an overall conclusion on an engagement quality review and in preparing the resulting report.
An auditor engaged in an engagement quality review must possess the following characteristics: