Financial Management System

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Summary of SA

http://wirc-icai.org/wirc_referencer/Acconting & Auditing/Summary of S...

SUMMARY OF STANDARDS OF AUDITING (SA) APPLICABLE FOR THE FINANCIAL YEAR 2011-12
STANDARDS ON QUALITY CONTROL (SQCS) SQC 1: Quality control for firms that perform audits and reviews of historical financial information, and other assurance and related services engagements Objective of SQC–1 is to provide the firm with reasonable assurance that its personnel comply with applicable professional standards as well as regulatory and legal requirements, and that reports issued by the firm or engagement partner(s) are appropriate in the circumstances Elements of System of Quality Control 1 Leadership responsibilities for quality within the firm The firm should establish policies and procedures designed to promote an internal culture based on recognition that quality is essential in performing engagements. Such policies and procedures should require the firm’s chief executive officer (or equivalent) or, if appropriate, the firm’s managing partners (or equivalent), to assume ultimate responsibility for the system of quality control Any person or persons assigned operational responsibility for the firm’s quality control system by the chief executive officer or managing board of partners should have sufficient and appropriate experience and ability, and the necessary authority, to assume that responsibility 2 Ethical requirements The firm should establish policies and procedures designed to provide it with reasonable assurance that the firm and its personnel comply with relevant ethical requirements The firm’s policies and procedures should emphasize the fundamental principles, which are reinforced in particular by (a) the leadership of the firm, (b) education and training, (c) monitoring, and (d) a process for dealing with non–compliance 3 Acceptance and continuance of client relationships and specific engagements The acceptance and continuance of Quality Control policies are

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