Page 12 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
Deadline: The firm should be capable of completing the engagement within the specified reporting deadline.
This ensures that the necessary work is completed in a timely manner and that the client's expectations are
met.
Experts: The firm should have access to experts who can provide specialized knowledge or guidance if their
expertise is required for the engagement. This ensures that any complex or technical issues can be addressed by
individuals with the necessary expertise.
Capability of Resources: The firm must have a sufficient number of personnel with the necessary capabilities
and competence to successfully undertake the engagement. This includes having individuals with the right
skills, expertise, and qualifications to perform the required tasks effectively.
Knowledge of Industry: Firm personnel should possess relevant knowledge of the industries or subject
matters involved in the engagement, including understanding the specific nuances, regulations, and challenges
associated with those industries or subject matters.

(CNO-SQC.200) Guidelines for Resolving Conflict of Interest and Handling Information in Engagement
and Client Relationships
1. Conflict of Interest: Resolve any conflict of interest between the firm and client before accepting the
engagement.
2. New Information: If new information arises that would have led to declining the engagement, follow
established policies and procedures.
(Shortcut: RAW)
2A. Professional Responsibilities to report: Consider the professional and legal obligations, including the
need to report to the appointing person(s) or regulatory authorities.
2B. Appropriate Decision Making: Make decisions based on the circumstances and the information obtained,
ensuring they align with professional standards and legal requirements.
2C. Withdrawal Consideration: Evaluate the possibility of withdrawing from the engagement or both the
engagement and client relationship.

(CNO-SQC.220) Guidelines for Professional in case of Withdrawal from Client Engagements

(Shortcut: DDRD)
The policies and procedures for withdrawing from an engagement or client relationship can be summarized as
follows:
Discussion: This involves discussing the appropriate actions with the relevant level of client management and
those responsible for governance based on the facts and circumstances.
Withdrawal Decision: If the firm decides to withdraw, it involves discussing the withdrawal from the
engagement or both the engagement and client relationship with the appropriate level of client management
and governance, and providing reasons for the withdrawal.
Report: This involves evaluating whether there are professional, regulatory, or legal requirements for the firm
to remain in place or report the withdrawal to regulatory authorities, along with the reasons for withdrawal.
Documentation: This involves documenting significant issues, consultations, conclusions, and the basis for
these conclusions.

(CNO-SQC.240) Human Resources Management and Professional Development in Audit Firms

1. Policies & Procedures: These policies and procedures will enable the firm or engagement partners to issue
appropriate reports. to perform engagements in line with professional standards, regulations, and legal
requirements.
2A. Enough Personnel for Compliance: The firm needs to establish policies and procedures to ensure it has
enough competent and ethically committed personnel.

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