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CA Final · Advanced Auditing, Assurance and Professional Ethics · Related Services

A CA firm applies SQC 1 across its practice. For a new compilation engagement for Vertex Ltd, which statement correctly reflects the relationship between SRS 4410 (Revised) and SQC 1?

SQC 1 applies. As per SRS 4410 (Revised), SQC 1 covers the firm's responsibility to establish and maintain its quality control system for related services engagements, including compilation engagements, through policies and procedures to implement and monitor compliance.

  1. ASQC 1 deals with the firm's responsibility to establish and maintain its system of quality control for related services engagements, including compilation engagementsCorrect
  2. BSQC 1 does not apply to compilation engagements because no assurance is given
  3. CSQC 1 applies only to audit engagements of listed companies
  4. DSRS 4410 (Revised) replaces the firm's quality control system for such engagements

Explanation

SRS 4410 (Revised) states SQC 1 deals with the firm's responsibilities for its quality control system for related services engagements, including compilation engagements. The firm's policies and procedures to implement and monitor compliance remain relevant, so the exclusion options are wrong.

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