Inspection and monitoring of quality control by a firm of auditors involves both inhouse and external procedures. The internal procedures include the post-audit review,
sometimes known as a “cold review”. The external procedures are sometimes known
as “external practice inspections” or “peer reviews”.
Required:
a) Write explanatory notes on the “cold-review”. (10 marks)
b) Explain the advantages and disadvantages of the “peer review”. (10 marks)