ICAI releases QRB Report on Audit Quality Review

The Institute of Chartered Accountants of India (ICAI) has released QRB Report on Audit Quality Review. The present report highlights the key findings observed in the audit quality reviews conducted during financial year 2021-22 indicating our approach for review, key trends, our expectations and other focus areas. I hope the concerned stakeholders will find this Report useful. Now, it is incumbent on the Audit firms to take remedial actions for the deficiencies highlighted by the QRB, identify the root causes thereof and improve their audit quality. Other Audit Firms may also benefit from these findings and try to improve their audit quality.

“Audit Firms may need to focus on training for developing the expertise on data analytics among their employees. The traditional pyramid structure – with a small number of experienced partners and a relatively large number of junior staff – may need to change. Ensuring adequate supply of auditors and other experts may need attracting people to the profession, upskilling them, and ensuring staff retention by Audit firms. This would require the efforts of all concerned in the sector including Audit firms and regulatory bodies. With markets and companies becoming increasingly global, there may also be a benefit in firm networks being able to move auditors and experts between jurisdictions to meet demand,” Ms. Shefali Shah, Chairperson, Quality Review Board said.

At the level of Quality Review Board, during financial year 2021-22, QRB completed 24 reviews of audit quality of 23 entities in India. Out of these 24 completed reviews, QRB issued advisories to concerned Audit firms for further improvement in 22 cases and other 2 cases were closed.

To Read the full text of the Order CLICK HERE

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