Page 350 - CA Inter Audit PARAM

CA Ravi Taori

The importance to audit quality of:
• The fact that quality is essential in performing audit engagements.
• Performing work that complies with professional standards and regulatory and
legal requirements;
• Complying with the firm’s quality control policies and procedures as applicable;
• Issuing auditor’s reports that are appropriate in the circumstances; and
• The engagement team’s ability to raise concerns without fear of reprisals; and
• The fact that quality is essential in performing audit engagements.

➢ Engagement partner defined:
Engagement partner refers to the partner or other person in the firm who is responsible for the
audit engagement and its performance, and for the auditor’s report that is issued on behalf of the
firm, and who, where required, has the appropriate authority from a professional, legal or
regulatory body.

Acceptance & Continuance- Information assists the auditor- Old Course --
QNO accepting and continuing relationship with the client (P16M/M17R/M18R/N18M/N19R
220.06
Bhaskar CNO SA220.140 /N20E/M19E/SM20/SM21/N21M)
As per SA 220, Quality Control for an Audit of Financial Statements the auditor should obtain information
considered necessary in the circumstances before accepting an engagement with a NEW client, when
deciding whether to continue an existing engagement and when considering acceptance of a NEW
engagement with an existing client. Explain
OR
Mention any four information which assists the auditor in accepting and continuing of relationship with
the client as per SA 220.

OR
“The auditor should obtain information considered necessary in the circumstances before accepting an
engagement with a new client.” Explain. Also mention any four information which assists the auditor in
accepting and continuing of relationship with the client as per SA 220.
OR
CA Raj, an engagement partner wants to take decision, regarding acceptance and continuance of an audit
engagement Which information’s, he should obtain before accepting an engagement?
Answer ➢ Information which assist the Auditor in accepting and continuing of relationship with Client:
As per SA 220, “Quality Control for an Audit of Financial Statements” the auditor should obtain
information considered necessary in the circumstances before accepting an engagement with a
new client, when deciding whether to continue an existing engagement and when considering
acceptance of a new engagement with an existing client. The following information would assist the
auditor in accepting and continuing of relationship with the client:
Client
The integrity of the principal owners, key management and those charged with governance
of the entity;
Auditor
Whether the engagement team is competent to perform the audit engagement and has the
necessary capabilities, including time and resources;
Whether the firm and the engagement team can comply with relevant ethical
requirements; and
Significant matters
Significant matters that have arisen during the current or previous audit engagement, and
their implications for continuing the relationship.

QNO Consistency in Quality of Engagement Performance Old Course – (M21R/N21R/N22R/M23M)
220.07 Bhaskar CNO SA220.160

Through its policies and procedures, the firm seeks to establish consistency in the quality of engagement

performance. This is often accomplished through written or electronic manuals, software tools or other
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