Core concepts
- 01SA 220 / SQC 1: quality control at engagement and firm level.
- 02Elements: leadership, ethics, acceptance, HR, performance, monitoring.
- 03Engagement Quality Control Review (EQCR) for listed entities & high-risk.
- 04Documentation retention: 7 years from report date for audit; 5 for review/other assurance.
- 05Peer Review Board (PRB) and Quality Review Board (QRB) — ICAI mechanisms.
Flowchart summary
Quality Control Structure | Firm Level (SQC 1) -- Leadership, Ethics, HR | Engagement Level (SA 220) | Engagement Quality Control Review (EQCR for listed) | Peer Review / NFRA inspection
Exam-critical pointers
- ⭐EQCR partner must be engaged before signing the audit report.
- ⭐NFRA jurisdiction: listed cos + cos with paid-up capital > ₹500 cr / turnover > ₹1000 cr.
- ⭐Documentation must enable experienced auditor unconnected with engagement to understand procedures.
- ⭐Differences within engagement team resolved per SA 220 — escalate if unresolved.
Make it click