Page 13 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
2B. HR-Issues: The policies and procedures should address various HR issues, including recruitment,
compensation, training, career development, and performance evaluation.
2C. professional Development: There should be a strong emphasis on the continuous professional
development of the firm's personnel.

(CNO-SQC.260) Responsibilities and Competence of Engagement Partners

1. Assignment of Engagement Partner: The firm should assign an engagement partner to each engagement,
ensuring they have the necessary capabilities, authority, and time for the role.
2. Communication: The identity and role of the engagement partner should be communicated to key client
personnel and those responsible for governance.
3. Definition of Responsibilities: Clear and defined responsibilities should be communicated to the partner.
4. Competence and Skill of the Engagement Team: Each engagement team should possess the required
competence and skill to fulfil their responsibilities effectively. The firm should ensure suitable individuals are
available and provide training for their role.
5. Performance Assessment and Quality Commitment: The firm should regularly assess the performance of
engagement partners and team members, considering their commitment to maintaining quality in their work.
6. Quality Focus and Continuous Improvement: The firm should establish policies and procedures to
maintain a quality focus throughout engagements, including performance evaluations and measures for
continuous improvement.

(CNO-SQC.280) Engagement Performance

1. Steps: Engagement teams are briefed (Direction) on their objectives and the processes for complying with
engagement standards. This includes supervision, training, and performance review methods.
2. Consultation: In difficult or contentious matters, consultation at the appropriate professional level is
necessary. This involves individuals within or outside the firm who have specialized expertise.
2A. Appropriate Person: Consultation procedures require interaction with those having appropriate
knowledge, seniority, and experience on significant technical, ethical, and other matters.
2B. External Resources: Firms lacking appropriate internal resources may consult externally, utilizing advisory
services provided by other firms or professional and regulatory bodies. Documentation of issues and
consultation results is essential.
3. Documentation: Proper documentation of the work performed is crucial for maintaining the quality of
engagement performance.

(CNO-SQC.300) Engagement quality control review

1A. Purpose: Engagement quality control review is a critical part of the audit process, ensuring significant
judgments are objectively examined to minimize the risk of issuing an inappropriate report.
1B. Extent: The complexity of the engagement and the potential risk of an inappropriate report determine the
extent of the review. More complex and higher-risk engagements require a more comprehensive review.
2A. Mandatory: Engagement quality control review is compulsory for all audits of financial statements of
listed entities, ensuring a higher level of scrutiny and oversight for publicly traded companies.
2B. Criteria: For engagements other than audits of financial statements for listed entities, the firm must
establish criteria.
to determine which cases necessitate the performance of an engagement quality control review.
3. Responsibility: The engagement quality control review does not reduce the responsibilities of the
engagement partner, who remains accountable for the overall quality and accuracy of the engagement.

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