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Engagement Quality Review (EQR), under SA 220, is required for:
AListed entities and other engagements identified in the firm's policy
BEvery audit regardless of size
COnly first-year audits
DOnly audits with prior-year qualifications
Answer & Solution
Correct answer: A. Listed entities and other engagements identified in the firm's policy
1. SA 220.19 requires EQR for listed entities and engagements specified by firm policy.
2. It is not universal - small private entities may not require EQR.
3. First-year and prior-qualification factors are inputs to firm policy but not the rule.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
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