Page 14 - CA Final PARAM Digital Book.

Documentation Ownership: Unless specified by law or regulation, engagement documentation is the
firm's property. The firm may share parts of the documentation with clients without compromising the
work's validity or the firm's independence.

3. Case Discussion: Discuss given case.
4. Conclusion: Engagement files should be completed within 60 days post date of the auditor's report for
audit engagements. So, contention of Ramanujan is Incorrect

QNO Difference of Opinion between EP & EQCR Reviewer New Course – (SM23)
127.685 TITANIUM CNO-- SQC.360
BNE & Co. are in midst of audit process of a listed company. During the course of audit, an issue arose
relating to revenues from contracts with customers in terms of Ind AS 115. The engagement partner took
a certain stand. However, engagement quality control reviewer recommended otherwise after review.
The engagement partner is not willing to accept recommendations of reviewer. How can the stalemate be
ended?
1. SQC 1: Reference to SQC 1, its full name & its requirement have Quality Control System.
2. Concept: CNO SQC.360 Differences of Opinion

1. Differences: Differences of opinion can occur within the engagement team, with consulted individuals,
and between the engagement partner and the engagement quality control reviewer.
2A. Report Issuance: The report should not be issued until all such differences are resolved.
2B. Resolution Procedures: The matter should be addressed following the firm's established procedures.
These procedures may involve consulting with another practitioner or firm, or a professional or regulatory
body.
3. Quality Assurance: Adherence to these procedures is crucial to ensure the highest quality and accuracy
of the engagement process and the resulting report.
3. Case Discussion: Discuss given case.
4. Conclusion: Procedures discussed should be followed to resolve difference of opinion. Audit Report
should be issued only after difference is resolved.

QNO How to deal with complaints & allegations against CA Firm Old Course – (N20E, M22M)
127.700 TITANIUM CNO -- SQC.420
M/s NK & Co., Chartered Accountants were appointed as Statutory Auditors of Fresh Juice Limited for the
F.Y 2019-2020. The previous year's audit was conducted by M/s. LP & Associates. After the audit was
completed and report submitted, it was found that closing balances of last financial year i.e., 2018-19 were
incorrectly brought forward. It was found that M/s NK & Co. did not apply any audit procedures to ensure

that correct opening balances have been brought forward to the current period. Accordingly, a complaint
was filed against NK & Co. in relation to this matter. You are required to inform what policies are required
to be implemented by NK & Co. for dealing with such complaints and allegations as required by Standard on
Quality Control (SQC).
Answer In the given question, NK & Co. did not apply audit procedures to ensure that opening balances had
been correctly brought forward. A complaint was filed against the auditors in this context. As per
Standard on Quality Control (SQC) 1 “Quality Control for Firms that Perform Audits and Reviews of
Historical Financial Information, and Other Assurance and Related Services Engagements”,
Policies Procedures
(i) The firm should establish policies and procedures designed to provide it with reasonable assurance
that it deals appropriately with

(a) Complaints and allegations that the work performed by the firm fails to comply with professional
standards and regulatory and legal requirements; and

(b) Allegations of non-compliance with the firm’s system of quality control.

Source

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