The Institute of Chartered Accountants of India (ICAI) has released the third volume of its guidance on non-compliances identified by the Quality Review Board (QRB) during audits.
This latest publication, under the Auditing and Assurance Standards Board (AASB), aims to enhance audit quality by addressing common issues found in 151 case reviews.
The document, titled “Guidance on Non-Compliances Observed by Quality Review Board (QRB) During Quality Reviews,” compiles 46 instances of non-compliance with various standards and regulatory frameworks.
These include Standards on Quality Control, Standards on Auditing, and the Companies Act of 2013.
The QRB, established in June 2007 under the Chartered Accountants Act of 1949, conducts quality reviews of audit services within its purview.
Its reviews have highlighted numerous instances where audit firms have not adhered to mandated standards and regulations.
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By GlobalDataBased on these findings, the QRB has issued advisories to audit firms to rectify these deficiencies.
The Council of ICAI was requested by the QRB to provide guidance to its members, leading to the creation of this series of documents.
The Volume 3 of the guidance addresses specific areas such as audit documentation (SA 230), internal financial controls, and fraud detection responsibilities (SA 240).
It also offers practical advice for correcting deficiencies, focusing on engagement documentation, risk assessment, and quality control monitoring.
ICAI president Ranjeet Kumar Agarwal was quoted by Taxscan as saying: “This publication is a compilation of 46 common non-compliances observed by QRB while conducting quality reviews and covering 151 cases (including NIL cases) received from QRB.
“The publication also contains guidance suggested by AASB for the members on these common non-compliances. The purpose of this publication is to provide awareness to the members about common non – compliances observed by QRB and help them in performing quality audits
This release follows the ICAI’s recent proposal to introduce a joint taxation system for married couples.