By SMP Department, Professional Practices & Technical

The goal of subjecting the work of the practitioners under the order to a review (peer review or Quality Assessment Programme (QAP)) by the Practice Review Committee (PRC) is to uphold audit quality by enabling the practitioner of a Type 3 firm (the Practitioner) to improve the quality of work under the supervision of suitably qualified practitioners. The reviewer serves as a mentor assisting the practitioner under review and the focus is to assess the quality of the audit process undertaken and provide recommendations on the improvements needed. 

Whilst both Peer Review and QAP aim to enhance audit quality, their approaches differ as follows:

By introducing Peer Review and the QAP, the framework aims to tailor interventions to the specific needs of audit firms, ensuring both immediate improvements and long-term excellence in audit practices. Audit firms, particularly those with a Type 3 rating, should prepare to engage with these new processes, which will not only address existing deficiencies but also foster a culture of continuous improvement and professional integrity within the auditing sector.

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Part 1 of this article on Peer Review and the QAP can be accessed here.

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