QRB Report on Audit Quality Review
QRB Report on Audit Quality Review
Our Approach
Quality Review Board (QRB) reviews all aspects of how an audit was performed in entities selected for
review. Our reviews help improve audit quality and ensure audit opinions are reliable. QRB’s reviews
involve assessment of the work of statutory auditors while carrying out their statutory audit function 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. The major focus of the reviews is on
compliance with technical standards, relevant laws & regulations, statutory and regulatory
requirements, quality of reporting, ethical standards and firm’s quality control framework. QRB ensures
that all persons involved in the review exercise maintain confidentiality of information and avoid
conflict of interest.
Cases of non-compliances where:
financial statements are not materially prepared in accordance with the requirements of the
applicable financial reporting framework considering qualitative aspects of the entity’s
accounting practices as would affect the truth and fairness of the financial statements and
auditor has not reported accordingly as per applicable standard on auditing; or
auditor has not obtained reasonable assurance about whether the financial statements as a
whole are free from material misstatements, whether due to fraud or error; or
auditor does not express a modified opinion when, having obtained sufficient appropriate audit
evidence, concludes that misstatements, individually, or in aggregate, are material; or
in other cases of non-compliances of technical standards or other relevant guidance or other
relevant laws and regulations as would materially affect the truth and fairness of the financial
statements;
are forwarded to the Disciplinary Directorate of the ICAI for its examination.
In other cases involving matters of improvement to various requirements of technical standards, other
relevant laws and regulations and other relevant guidance which are not material in nature as would
affect the truth and fairness of the financial statements, individually or in aggregate, QRB issues
advisory/ guidance to the concerned AFUR for undertaking remedial measures for improvement in
quality of services in future. These are also followed-up for compliance within a specified period. In
matters involving general guidance that needs to be issued to the Audit firms/ members at large,
recommendations are made to the Council of the ICAI in an aggregated manner at appropriate
intervals.
In order to provide guidance to the Audit firms for ensuring improvement in the quality of their
services, QRB publishes periodic reports, on an annual basis, providing key audit quality review findings
in an aggregated manner. These reports are widely disseminated and publicly made available at QRB
website. QRB follows a strong system of independent review of statutory audit services of the Audit
firms based upon best international practices.
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