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CS Professional · Compliance Management, Audit and Due Diligence · Peer Review and Quality Review

For a complex audit of Bharat Power Ltd, the reviewer, CS Anita Rao, finishes her engagement quality control review. She documents that the firm's review procedures were performed. Which additional documentation does SQC 1 require?

She must document that the review was completed before the report was issued and that she knows of no unresolved matters suggesting the team's significant judgments and conclusions were inappropriate, in addition to confirming that the required procedures were performed.

  1. AThat the review was completed before the report was issued, and that she is not aware of unresolved matters suggesting the significant judgments and conclusions were inappropriateCorrect
  2. BThat the engagement partner's responsibilities were reduced by the review
  3. CThat every working paper of the engagement was re-performed by her
  4. DThat the client's management agreed with the review findings

Explanation

SQC 1 requires documentation that the procedures were performed, that the review was completed before the report was issued, and that the reviewer is not aware of unresolved matters casting doubt on significant judgments and conclusions. The review does not reduce the engagement partner's responsibilities, and it covers selected working papers, not all.

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