CA Final · Advanced Auditing, Assurance and Professional Ethics · Quality Control

Desai & Co. has documented its quality control policies. A senior manager says that communicating them to staff is optional, and that staff views on quality matters need not be sought. Which statement is correct under SQC 1?

The firm must document and communicate its quality control policies to its personnel, stressing that every individual is personally responsible for quality and must comply. It should also encourage personnel to raise views or concerns on quality control matters, so the manager's view is incorrect.

1. APolicies are communicated only to partners, as staff are not responsible for quality
2. BPolicies should be documented and communicated to personnel, including that each individual has personal responsibility for quality, and the firm encourages personnel to voice views or concernsCorrect
3. CCommunication is needed only for audits of listed entities
4. DFeedback should be discouraged to avoid disputes with the engagement partner