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

On the audit of Bharat Agro Ltd, a listed company, the engagement quality control reviewer's file note says the review procedures required by firm policy were performed and the review was completed before the report date. It is silent on whether the reviewer knows of any unresolved matters about the engagement team's significant judgments. The firm's monitoring partner asks whether the documentation is adequate under SQC 1. What is the correct conclusion?

The documentation is inadequate. SQC 1 requires it to record that required 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. The third element is missing here.

1. AAdequate, since evidence of procedures performed and timely completion is sufficient
2. BAdequate, because unresolved matters need to be recorded only if they exist
3. CInadequate, because documentation must also state that the reviewer is not aware of unresolved matters suggesting the significant judgments and conclusions were inappropriateCorrect
4. DInadequate, because the note must be signed by the engagement partner as well