Responsibility of the auditor and the audit firm for quality control of the performance of the engagement

Abstract

The subject of this paper is to present the principles of responsibility of the engagement quality control reviewer both from the point of view of his own responsibility for the performance of the service and the responsibility of the audit firm. Special attention was paid to the possibility of being subject to disciplinary, administrative, civil and labor liability. The study attempts to answer the following questions. First, whether the location of the engagement quality control reviewer within the team, or outside the team, conducting the audit is relevant to his own responsibility for the performance of the service, as well as the audit firm’s liability therefor. Second, whether it is possible to impose an administrative penalty on the audit firm in the event of non-performance or improper performance of the engagement quality control reviewer. Thirdly, whether it is legally possible to “pass on” to the engagement quality control reviewer the financial consequences incurred by the audit firm, caused by the need to pay administrative fines imposed on the audit firm, as well as – the consequences of further possible damage suffered by the company as a result of the behavior of the engagement quality control reviewer.