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CMA Intermediate · Corporate Accounting and Auditing · Brief Introduction to Auditing Standards

According to the SQC 1 text provided, which Standard on Auditing establishes standards and provides guidance on quality control procedures for audits of historical financial information?

SA 220, Quality Control for an Audit of Financial Statements, is the standard that sets out quality control procedures for audits of historical financial information. It supplements SQC 1, which applies at firm level, by dealing with the engagement-level responsibilities of firm personnel.

  1. ASA 220, Quality Control for an Audit of Financial StatementsCorrect
  2. BSA 230, Audit Documentation
  3. CSA 500, Audit Evidence
  4. DSA 700, Forming an Opinion and Reporting on Financial Statements

Explanation

The text states that SA 220, 'Quality Control for an Audit of Financial Statements', establishes standards and guidance on quality control procedures for audits of historical financial information. SA 230 deals with documentation, not quality control at engagement level, so it is wrong.

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