Standard on Quality Control (SQC) 1

Introduction

1. The purpose of this Standard on Quality Control (SQC) is to establish
   standards and provide guidance regarding a firm’s responsibilities for its system
   of quality control for audits and reviews of historical financial information, and for
   other assurance and related services engagements. This SQC is to be read in
   conjunction with the requirements of the Chartered Accountants Act, 1949, the
   Code of Ethics and other relevant pronouncements of the Institute1
   (hereinafter
   referred to as “the Code”).
2. Additional standards and guidance on the responsibilities of firm personnel
   regarding quality control procedures for specific types of engagements are set
   out in other pronouncements of the Auditing and Assurance Standards Board
   (AASB) issued under the authority of the Council. For example, Standard on
   Auditing (SA) 220, “Quality Control for an Audit of Financial Statements”,
   establishes standards and provides guidance on quality control procedures for
   audits of historical financial information.
3. The firm should establish a system of quality control designed to
   provide it with reasonable assurance that the firm and its personnel
   comply with professional standards and regulatory and legal requirements,
   and that reports issued by the firm2 or engagement partner(s) are
   appropriate in the circumstances.
4. A system of quality control consists of policies designed to achieve the
   objectives set out in paragraph 3 and the procedures necessary to implement
   and monitor compliance with those policies.
5. This SQC applies to all firms. The nature of the policies and procedures
   developed by individual firms to comply with this SQC will depend on various
   factors such as the size and operating characteristics of the firm, and whether it
   is part of a network