Page 17 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
3B.Ethical Requirements: Evaluate compliance with ethical requirements
4. Significant Matters: Evaluate significant matters from previous engagements.

(CNO-SA 220.120) Assignment of Engagement Teams

The engagement partner ensures that the engagement team and any auditor's experts collectively have the
appropriate competence and capabilities to perform the engagement in accordance with professional standards
and regulatory requirements.

(CNO-SA 220.140) Engagement Performance

1. Direction & 2. Supervision: The engagement partner directs, supervises, and performs the audit
engagement in line with professional standards, regulatory and legal requirements.
3. Consultation: The engagement partner ensures the engagement team seeks appropriate consultation on
challenging or controversial matters, both within the team and with others at an appropriate level within or
outside the firm.
4. Review: The engagement partner reviews the audit documentation before issuing the audit report, ensuring
sufficient and appropriate audit evidence supports the conclusions.
5. Reporting: The engagement partner ensures the auditor's report is suitable for the engagement
circumstances.

(CNO-SA 220.160) Engagement Quality Control Review
Engagement Partner’s Responsibility for EQCR
For audits of listed entities' financial statements and other necessary audits, the engagement partner must
conduct an engagement quality control review. The engagement partner shall:
1. Appointment: Determine that an engagement quality control reviewer has been appointed.
2. Significant Matters: Discuss significant matters arising during the audit engagement, including those
identified during the engagement quality control review, with the engagement quality control reviewer
3. Don’t Sign: Not date the auditor’s report until the completion of the engagement quality control review.
Reviewer’s Responsibility for EQCR
1. Significant Matters: Engage in a conversation with the engagement partner regarding significant matters.
2. Significant Judgements: Analyse specific audit documentation related to the significant judgments made
by the engagement team and the conclusions they reached.
3. Review: Review the financial statements and the auditor's report that have been prepared.
4. Conclusions: Assess the conclusions reached by the engagement team in formulating the auditor's report
and consider whether the proposed auditor's report is suitable and appropriate.
Additional Responsibility of Reviewer in case of Listed Entities
When conducting a quality control review for audits of financial statements of listed entities, the engagement
quality control reviewer should also consider the following points, arranged in a logical sequence:
Consultation: Whether appropriate consultation has occurred on matters involving differences of opinion or
other challenging issues, and the conclusions resulting from those consultations.
Independence: The engagement team's evaluation of the firm's independence in relation to the audit
engagement.
Documentation: Whether the selected audit documentation accurately reflects the work conducted in relation
to significant judgments and supports the conclusions reached.

(CNO-SA 220.180) Differences of Opinion

If disagreements occur within the engagement team, with consulted individuals, or between the engagement
partner and the quality control reviewer, the team should adhere to the firm's policies and procedures for

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