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

Vikram & Associates, a CA firm, has documented its quality control policies in a manual and circulated it to all staff. A senior associate, Neha, believes quality control is solely the responsibility of the partners and that staff need not voice concerns about the system. Which view is consistent with SQC 1?

Under SQC 1, quality control policies must be documented and communicated to firm personnel, along with their objectives and the message that every individual bears personal responsibility for quality and compliance. The firm should also encourage personnel to voice views or concerns on quality control matters, so Neha's view is incorrect.

1. AStaff are expected only to read the manual, as quality is the partners' responsibility alone
2. BThe firm should communicate the policies, their objectives and the message that each individual has a personal responsibility for quality, and should encourage personnel to communicate their views or concerns on quality control mattersCorrect
3. CFeedback from staff is prohibited because it may weaken the hierarchy
4. DCommunication is needed only to engagement partners and not to other personnel