Chapter 5: Quality Management, Engagement Quality Reviews, and Peer Review


This chapter addresses the audit organization’s responsibilities for designing, implementing, and operating a system of quality management for engagements conducted in accordance with generally accepted government auditing standards (GAGAS).31 It includes requirements and application guidance for engagement quality reviews that the audit organization may use as a response to one or more quality risks relating to quality management. Finally, the chapter addresses the audit organization’s responsibilities for administering, planning, performing, and reporting on peer reviews of audit organizations that conduct engagements in accordance with GAGAS. The requirements of this chapter are intended to be followed in conjunction with all other applicable GAGAS requirements.

  1. The system of quality management applies to financial audits, attestation engagements, reviews of financial statements, and performance audits conducted in accordance with GAGAS (see para. 1.27h).↩︎