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QNO Quality Control element (In short) Old Course -- (N19M)
220.01 Bhaskar CNO SA220.060
The firm’s system of quality control should include policies and procedures addressing each and every

element of system of quality control. State those elements.
Answer ➢ ELEMENTS OF A SYSTEM OF QUALITY CONTROL:
The firm’s system of quality control should include policies and procedures addressing each of the
following elements:
Leadership responsibilities for quality within the firm.
Human resources.
Ethical requirements.
Acceptance and continuance of client relationships and specific engagements.
Engagement performance.
Monitoring.
Author’s Note
See diagrammatic presentation of 220.02

QNO-- SA 220 is based on SQC 1 New Course – (M24R)
220.01.50 Bhaskar CNO – SA220.020
“SA 220 is premised on the basis that the firm is subject to SQC 1”. What do you understand by given

statement in context of audit quality?
Answer Audit quality is essential to maintain confidence in the independent assurance provided by the auditors. It
is responsibility of auditor to maintain high audit quality. SQC 1 and SA 220 both deal with quality control.
SQC 1 applies to entire firm. However, SA 220 applies to a particular audit engagement.

Based upon quality control system of firm established in accordance with requirements of SQC 1, quality
control policies pertaining to audit engagements are decided by engagement teams. Engagement partner
of a team is responsible for quality control procedures of a particular audit engagement in accordance with
SA 220.

Therefore, SA 220 is premised on the basis that the firm is subject to SQC 1. Within the context of the
firm’s system of quality control, engagement teams have a responsibility to implement quality control
procedures that are applicable to the audit engagement.

QNO Responsibility of Engagement Partner Old Course -- (N18M/N19E/N20R/M23R)
220.03 Bhaskar CNO SA220.080 New Course – (SM25/M24M)
As per SA 220, the engagement partner shall take responsibility for the overall quality on each audit
engagement to which that partner is assigned. While taking responsibility for the overall quality on each
audit engagement, analyse and explain the emphasis of the actions of the engagement partner and
appropriate messages to the other members of the engagement team. Also define engagement partner.

OR
The engagement partner shall take the responsibility for the overall quality on each audit engagement to
which that partner is assigned. Discuss with reference to SA 220 "Quality Control for an audit of financial
statement".
Answer ➢ As per SA 220 “Quality Control for an Audit of Financial Statements”, the engagement partner
shall take responsibility for the overall quality on each audit engagement to which that partner is
assigned.

➢ The actions of the engagement partner and appropriate messages to the other members of the
engagement team, in taking responsibility for the overall quality on each audit engagement,
emphasis:
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