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SQC 1 (Standard on Quality Control 1) at FIRM level requires:
AQuality control only annually
BA documented system of quality control covering 6 elements (leadership, ethics, acceptance, HR, engagement performance, monitoring)
CQuality control only at engagement level
DQuality control only for listed entity audits
Answer & Solution
Correct answer: C. Quality control only at engagement level
1. SQC 1 mandates a firm-wide system of quality control with 6 elements.
2. Leadership responsibilities, ethics, client acceptance/continuance, HR, engagement performance, monitoring.
3. Applicable to all firms performing audits and assurance engagements.
_Source: ICAI BoS CA Final Paper 3, Ch 6 "Standards on Auditing and Professional Ethics"_
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