Page 18 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
resolving these differences

(CNO-SA 220.200) Monitoring

1A. Monitoring Significance: Monitoring is a crucial part of a firm's quality control system.
1B. Monitoring Purpose: The aim of monitoring is to provide assurance that the firm's quality control
policies and procedures are relevant, adequate, and functioning effectively.
2A. Partner Responsibility: The engagement partner has the duty to consider the results of the firm's
monitoring process.
2B. Information Review: The engagement partner must review the latest information circulated by the firm
and, if applicable, other network firms.
2C. Deficiency Impact: The engagement partner needs to assess the potential impact of any identified
deficiencies on the audit engagement.

(CNO-SA220.220) Documentation (About each element)

1A. Ethical requirements: Document issues identified concerning compliance with relevant ethical
requirements and their resolution.
1B. Independence: Record conclusions on compliance with independence requirements applicable to the
audit engagement, including any relevant discussions with the firm that support these conclusions.
2. Acceptance and continuation: Note conclusions reached about the acceptance and continuation of client
relationships and audit engagements.
3A. Consultations: Detail the nature, scope, and conclusions of consultations undertaken during the audit
engagement. Besides, the engagement quality control reviewer shall document, for the audit engagement
reviewed, that:
3B. EQCR & Timing: All necessary procedures required by the firm's policies on engagement quality control
review have been performed. The engagement quality control review has been completed on or before the date
of the auditor's report.
3C. Statement by Reviewer: The reviewer is not aware of any unresolved matters that would cause them to
question the appropriateness of the significant judgments made by the engagement team and their
conclusions.

(CNO-SA220.240) SQC 1 VS. SA 220- Key Differences in Nature, Scope And Applicability

Particulars SQC 1 SA 220
Applicability It applies to audits, reviews of historical It is applicable only to audit engagements.
financial information, and other assurance
and related services engagements.
Responsibility The entire firm is subject to this standard, It applies to a specific audit engagement,
with the CEO or managing partners with the engagement partner taking
assuming the responsibility. responsibility.
Purpose It involves the establishment of a quality It deals with the responsibilities of
control system consisting of policies and engagement teams to implement quality
procedures for the firm as a whole. control procedures applicable to audit
It aims to ensure that the firm and its engagements.
personnel comply with professional It operates on the premise that the firm is
standards and regulatory and legal subject to SQC 1, making SQC 1 a
requirements, ensuring appropriate reports prerequisite for the applicability of SA 220.
are issued.

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