Define: Peer review System review Engagement review

Question

2.55K viewsFebruary 18, 2019Accounting Economics

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Anonymous 599 January 15, 2019 0 Comments

Define:

Peer review

System review

Engagement review

Tutor Changed status to publish February 18, 2019

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1 Answer

score 0 · Answer 1 · 2019-01-15T07:29:30+00:00

1. Peer review = the word peer itself defines peer review. Peer in general sense means the person equivalent to us means of same level . Thus, in professional terms peer review means review of the work that is performed by one professional by the other independent professional of the same fraternity.

2 . System review = This type of review is to ensure compliance with professional standard and doesn’t extend beyond other areas of practice. If a firm does following work then it basically requires system review :-

A. Engagement under statements on auditing standards .

B . Engagement under government auditing standard.

C . Examinations under statement on standards for attestation engagements.

D. Engagements under PCAOB standards.

3 . Engagement review = under this review a CPA firm reviews financial statements prepared by another CPA firm to determine if those financial statements comply with professional standards. These review do not cover quality control procedure. They are also called off-site review.