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

Gupta & Associates circulates its quality control policies by email but the managing partner tells staff that only partners are responsible for quality and that staff queries on quality matters are discouraged. Which statement best reflects SQC 1 on communication of quality control policies?

Policies must be documented and communicated to all personnel, describing the objectives and stressing each individual's personal responsibility for quality. The firm must also encourage personnel to raise views or concerns on quality control matters, so discouraging staff queries and limiting responsibility to partners is wrong.

1. APolicies should be documented and communicated to personnel, stressing each individual's personal responsibility for quality, and personnel should be encouraged to voice views or concernsCorrect
2. BCommunication to partners alone is enough, as they carry the firm's quality responsibility
3. CCommunication is optional if the policies are documented in the firm manual
4. DCommunication should avoid mentioning objectives to prevent staff from questioning the system