Regulatory Alerts2024-03-21
OKB: Going Deeper
The Dutch Authority for the Financial Markets (AFM) concludes that the Engagement Partner Quality Review (EPQR) must be conducted with greater depth to effectively guarantee the quality of statutory audits. The AFM found significant deficiencies in the EPQR's depth, the reviewer's expertise, and the quality management systems of firms with regular licenses (AO's-RV), while firms for Public Interest Entities (AO's-OOB) performed better but still require improvements. The regulator urges all accounting organizations to enhance the rigor of their EPQR processes, ensure timely reviewer involvement, and strengthen their internal quality control systems to prevent unjustified user confidence in financial statements.
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