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

Kaveri Auditors completed the audit of Orchid Pharma Pvt Ltd, an unlisted company. The audit report was signed on 10 June, and the engagement quality control review was finished on 14 June. Which statement is correct under SQC 1?

The timing breaches the requirement. SQC 1 says the firm's policies should require the engagement quality control review to be completed before the report is issued. Completing it four days after signing the report does not satisfy this, whether or not the entity is listed.

1. AThe timing is acceptable because the review was completed before the report was filed with the registrar
2. BThe timing is acceptable because unlisted entity reviews may follow issue of the report
3. CThe timing breaches the firm's required policy, as the review must be completed before the report is issuedCorrect
4. DThe timing is acceptable if the engagement partner documents the reasons later