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

Iyer & Co. completed the quality control review of the audit of Bharat Steels Ltd. The reviewer's file note says only: 'Reviewed, all fine.' The firm's policy follows SQC 1. Which omission makes the documentation deficient?

The note is deficient because SQC 1 requires documentation that the review procedures were performed, that the review was completed before the report was issued, and that the reviewer knows of no unresolved matters suggesting the team's significant judgments and conclusions were inappropriate.

1. AIt omits a statement of the audit fee earned for the engagement
2. BIt omits a statement that the client management agreed to the review
3. CIt omits confirmation that the review was completed before the report was issued, and that the reviewer is not aware of unresolved matters suggesting the significant judgments or conclusions were inappropriateCorrect
4. DIt omits the list of all staff who worked on the audit