Page 19 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

(CNO-SA220.260) Mechanisms for Review Of Quality Control
Peer Review Board
1. Systems & Records: The peer review process involves an examination of systems and procedures of a
Practice Unit, with its assurance engagement records being reviewed by the Peer Reviewer.
2A. Reporting: The Board verifies that proper systems and documentation are in place, enhancing the quality
of professional work and leading to more reliable and useful audit reports.
2B. Compliance: The Peer Review Board, established by the Council of ICAI, ensures that members comply
with technical, professional, and ethical standards, including regulatory requirements.
3. Certification and Follow-up: A "peer review certificate" is issued upon successful review. In case of a
qualified report, the Practice Unit is informed about the need for a follow-up review.
Quality Review Board

1. Establishment: The Quality Review Board (QRB) is established by the Central government and comprises
members nominated by the Central government and the Council of ICAI.
2. Review: It reviews the quality of services, including audit services, provided by the members of the Institute.
3A. Recommendations to ICAI: QRB is responsible for making recommendations to the Council regarding
the quality of services provided by the members of the Institute.
3B. Guidance to Members: QRB guides the members of the Institute in improving service quality and
ensuring compliance with statutory and regulatory requirements.
4. Technical Reviewers: The QRB employs technical reviewers on an engagement basis from across the
country to conduct audit quality reviews of statutory auditors based on a risk-based approach.
National Financial Reporting Authority (NFRA)

1. NFRA Establishment: The National Financial Reporting Authority (NFRA) was established according to
Section 132(1) of the Companies Act, 2013.
2A. Quality Oversight: NFRA oversees the quality of service of professions ensuring compliance with
accounting and auditing standards, with powers to suggest improvements.
2B. Duties and Powers: NFRA's duties under Section 132(2) include monitoring and enforcing compliance
with accounting and auditing standards. Furthermore, it has the authority to undertake investigations under
Section 132(4) for certain class of companies.
3A. NFRA Scope: The companies under NFRA's purview, as stipulated in Rule 3 of NFRA Rules, 2018, include
listed companies, insurance companies, banking companies, and others as provided.
3B. QRB Scope: Quality Review Board (QRB) reviews the quality of audit services provided by the members of
the Institute only for entities not specified under Rule 3 of NFRA Rules, 2018, or those referred to QRB by
NFRA under relevant rules.

NOTE: As per Our past experience Concepts & Questions given in main ICAI Module are extremely
important & there are high chances that whole paper will come from here so we have restricted only SM
based content in Chapters. Further extra content of SA’s given in Index or where module coverage is not
adequate is given at the end as a separate Chapter. So that students can deal with such content separately with
different strategy.

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