SQC-1/SA 220 Revision | CA Inter Audit May/Sep'25 Exams | CA Shubham Keswani (AIR 8)

Introduction to the quality and ethics aspect of an interview audit.

Discussion on the importance of quality in audit work and the responsibility of auditors to maintain it.

Explanation on the standards that auditors must adhere to in terms of quality control.

The significance of providing confidence to users about financial statements.

The essential nature of quality control in audits and its impact on maintaining confidence.

The responsibility of auditors to ensure the quality of their work and its impact on the overall audit process.

Discussion on the standards related to quality control and their application in audit firms.

The importance of engagement in maintaining quality control within audit processes.

Independence and the importance of review within audit processes.

Establishing quality control policies for engagements and the role of engagement partners.

The objectives and significance of SQC and S-220 in maintaining quality control in audit work.

Discussion on the professional standards, regulatory requirements, and legal aspects of audit work.

The leadership responsibilities related to maintaining quality in audit work at the firm level.

The essential qualities, such as experience, ability, and authority, required for individuals involved in ensuring quality in audit work.

The individual responsible for ensuring the quality of audit work, primarily the engagement partner.

Discussion on the importance of complying with requirements in reports and the consequences of non-compliance.

Explanation of ethical requirements, emphasizing confidentiality and professionalism in business relationships.

Importance of maintaining professional behavior, integrity, objectivity, and avoiding conflicts of interest in the workplace.

Discussion on the significance of quality, knowledge, and skills in professional development and business relationships.

Identification and understanding of threats in professional practice, including self-interest, independence, familiarity, and intimidation threats.

Discussing the different types of relationships like blood relations, formal relations, and time relations in various scenarios.

Exploring a scenario where a child seeks advice on cheating in an exam and the ethical implications involved.

Analyzing the threat of self-review threat when a client brings financial statements for audit purposes.

Understanding the significance of gifts and hospitality in client relationships and the ethical considerations involved.

Defining threats in audit work and the importance of acting objectively in professional settings.

Discussing the importance of professional qualities like confidentiality, objectivity, integrity, and professional competence in the accounting profession.

Addressing challenges related to familiarity threats and the impact on independence and professional objectivity.

Explaining the significance of quality and compliance in providing accurate advice to clients and maintaining professional standards.

Identifying threats to independence and the need for safeguards to mitigate risks in audit work.

Examining different threats in professional relationships and the concept of self-interest threats in auditing.

Discussion on guiding principles including public confidence, being independent, threats, and safety measures.

Explanation of applying SafeGuard measures, taking action, and ensuring clarity in concepts.

Importance of clear appearance and independent thinking in the context of independence of mind.

Explaining influence, the ability to act with integrity, and maintaining independence from third parties.

Discussion on threats, safeguarding, and how to create policies to manage threats effectively.

Exploration of quality, integrity, and professionalism in handling confidential information and maintaining objectivity.

Discussing the importance of reputation assessment in recalling nature of Band in auditing process.

Exploring the appointment of the client owner and non-reappointment of the previous firm in auditing.

Analyzing the nature of accounting standards, internal controls, and fee reduction strategies in a firm.

Addressing significant matters such as ethical requirements, security, and audit policies and procedures.

Understanding engagement with clients, withdrawal scenarios, and the importance of documentation in auditing.

Discusses the criteria for listed entities and other entities regarding engagement complexities and differences of opinion. Also covers the importance of conducting a Quality Control Review (QCR) and the documentation assembly process.

Explains the process of assembling audit files or engagement files, including the team composition and the documentation required. Discusses the requirements post-audit report signing and the time limits for retaining information.

Focuses on the system of quality control set by the firm and the purpose of the system. Discusses the effectiveness and compliance of the quality control system and emphasizes the importance of ongoing processes and compliance with policies.

Ethics is the essence of following rules silently. The principle-based approach allows for flexibility in decision-making based on knowledge, skills, and the spirit of ethics.

In every situation, evaluate and arrive at a decision carefully to avoid situations beyond your capabilities. Three key points to remember: follow the principle-based approach, judge wide situations, and stay flexible for varied conclusions.

Always follow the spirit of the code, such as 'don't drink and drive,' even if the rule seems lenient. Stay away from those who don't follow this approach and focus on working hard in silence for your success.