Guidance Note on Non-Compliances Observed by Quality Review Board During Quality Reviews – Volume 3
ICAI releases Guidance on Non-Compliances Observed by Quality Review Board – Volume 3.
The Quality Review Board (QRB) has been set up under the provisions of the Chartered Accountants Act, 1949.The QRB conducts quality reviews of audit services of audit firms which are covered under its domain. These quality reviews bring out instances of various non – compliances of Standards on Quality Control (SQC), Standards on Auditing (SAs), audit reports, Companies (Auditor’s Report) Order (CARO), Accounting Standards (AS), Indian Accounting Standards (Ind AS), Schedule VI of Companies Act, 1956/ Schedule III of Companies Act, 2013 etc.
The QRB conducts quality reviews of audit services of audit firms which are covered under its domain. These quality reviews involve assessment of the work of statutory auditors so that QRB is able to assess (a) quality of audit and reporting by the statutory auditors; and (b) quality control framework adopted by the audit firms in conducting audit.
Such quality reviews point outs non-compliances with respect to prescribed standards/Acts i.e. Standards on Quality Control, Standards on Auditing, audit reports, CARO, Accounting Standards, Indian Accounting Standards, Schedule VI of Companies Act, 1956/ Schedule III of Companies Act, 2013. Based on observations, QRB issues necessary advisories to concerned audit firms. QRB also refers these instances to ICAI.
Volume 1 of the publication “Guidance on Non-Compliances Observed by Quality Review Board During Quality Reviews” was released in May 2024 and in July 2024, Volume 2 was released.
The Volume 3 is a compilation of some common non compliances of auditing requirements observed by QRB while conducting quality reviews. The publication also contains suggested guidance for the chartered accountants on these referred non-compliances.
It has been clarified that some observations given in the Volume III were based on the past provisions of law and the pre-revised Standards on Auditing. In case of these observations, guidance has been given based on the current provisions of law and currently applicable Standards on Auditing. Further, these observations should be read in the light of any subsequent amendments/developments. Also, this publication neither supersedes nor it is a replacement of any Standards, Guidance Notes, Pronouncements issued by ICAI. It has been advised to read or use this publication in conjunction with the relevant Standards, Guidance Notes, Pronouncements issued by ICAI.
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