Page 15 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

(CNO-SQC.380) Engagement Documentation
Engagement Completion and Report Handling: The firm should establish policies for engagement teams to
finalize engagement files promptly, within 60 days after the auditor’s report for audit engagements. If multiple
reports are issued for the same subject matter, each report should be treated as a separate engagement for final
file assembly.
Documentation Security: Policies should ensure the confidentiality, safe storage, integrity, accessibility, and
retrievability of engagement documentation.
Documentation Retention: Engagement documentation should be retained long enough to evaluate the
firm’s compliance with its quality control system, or longer if required by law or regulation. Specifically for
audit engagements, the retention period is typically no less than seven years from the date of the auditor’s
report, or if later, the date of the group auditor’s report..
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.

(CNO-SQC.400) Monitoring.

Definition:
1. System Design & Standard Updates: Ascertain the quality control system's design and effectiveness and
ensure the reflection of changes in professional, legal, and regulatory standards in the quality control policies.
2A. Appointment: Appoint a partner or qualified individual to supervise the monitoring process.
2B. Complaints Management: Handle complaints and allegations about non-compliance with professional or
regulatory requirements from within or outside the firm.
2C. Action on Non-compliance & Deficiencies: Implement corrective measures against personnel who
breach quality control policies and take necessary action upon identifying deficiencies in the design, operation
of quality control policies, or non-compliance with the firm's quality control system.

(CNO-SQC.420) Complaints and Allegations

1. Source: Complaints and allegations can originate from personnel, clients, or third parties.
2. Channels: The firm should provide safe avenues for personnel to voice concerns without fear of retaliation.
3. Investigation: Complaints and allegations should be probed according to firm policies, under the
supervision of a non-engaged, experienced partner. Legal counsel may be involved if needed.
4. Action: If investigations reveal deficiencies or non-compliance, the firm must take appropriate action.
5. Documentation: All complaints, allegations, and responses should be recorded.
6. External Assistance: Small firms can engage external individuals or other firms for investigations.

SA 220

QUALITY CONTROL FOR AN AUDIT OF FINANCIAL STATEMENTS

(CNO-SA 220.020) Introduction

1. Engagement Partner’s Role: According to SA-220, engagement partners are responsible for executing
quality control procedures in audit engagements, ensuring adherence to the firm's quality control system.
2A. Engagement Team's Role: The engagement teams decide on audit engagement-specific quality control
policies, in line with the firm's overarching quality control system.
2B. Independence Monitoring: These teams also provide crucial information to the firm to facilitate

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