Engagement and Quality Control Standards:
The auditor/audit firm should establish a system of quality control designed to provide reasonable assurance that the auditor/firm and its personnel comply with professional standards and regulatory and legal requirements, and that reports issued by the firm or engagement partner(s) are appropriate in the circumstances and will survive the test of any regulatory, legal or other action that may arise in future. This system of quality control should consist of policies designed to achieve its objectives and the procedures necessary to implement and monitor compliance with those policies. The nature of the policies and procedures developed by individual or firms to comply with SQC will greatly depend on various factors such as the size, maturity, geographical location, type of work handled and other operating characteristics.
The ICAI has issued various Engagement and Quality Control Standards applicable to an audit of financial statements which are mandatorily to
be followed by all practitioners. Understanding of the concepts in these Engagement Standards would help the auditor in discharging his duties in a
diligent way.