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A common safeguard against the objectivity threat is to perform quality control reviews.
How are INTERNAL quality control reviews performed (i.e. examples of procedures) and by WHOM?Quality control reviews are done firm-wide and for each engagement.
They usually involve an independent member checking the work done by another to see whether there was adequate supervision, documentation and review of evidence and procedures and that the conclusions drawn were appropriate.A typical form of review on an ongoing audit is called a “Hot Review” where another independent partner checks work done so far on the audit file for evidence of the above aspects. It is frequently carried out on work done by an auditor whose objectivity may be compromised.
Firm-wide reviews include “Cold reviews” ie. where a set of completed audit files are checked to ensure compliance with proper procedure.
Firm reviews are also popular where another audit firm is called in to review work done on an engagement.
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