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· The engagement letter issued by the audit firm was still in the old format and not as per the format recommended by SA 210.

· The engagement letter mentioned the assignment as review of interim financial information rather than the statutory audit. The firm was appointed as statutory auditors apart from the limited review and certification under corporate governance. However, the engagement letter had no information regarding limited review and certification.

· Engagement letter did not clearly specify the management’s responsibility as to the completeness and accuracy of accounts and other reports.

· Engagement letter issued by the firm was not signed by those charged with governance or as authorized by the Board of Directors. Moreover, the engagement letter was not obtained for the other services provided by the firm.

· Engagement letter issued was not covering all the aspects as mentioned in SA210- Agreeing the terms of audit engagements. Further the engagement letter was addressed to Senior General Manager- F & A Department instead of Board of Directors and was also not acknowledged by the client.

· No separate engagement letter for e-filing of Tax Audits was held on record.

· Audit engagement letter did not contain terms of assignment and fee.

· The firm had not sent engagement letter to auditee Company in respect of Quarterly Review of Financial Statements, Corporate Governance Certificate assignment, Tax Audit and Taxation assignments.

· The firm had not documented policy with regard to obtaining necessary information before accepting the engagement, deciding whether to continue an existing engagement and when considering acceptance of new engagement with an existing client.

Quality Review Board Report on Quality Review Findings (2012-15) Click Here >>

Quality Review Board (QRB) Report 2012-15- Agreeing with the Terms of Audit Engagements by Auditors in Accordance with Standard on Auditing SA 210 |18-08-2015|