M/S ABC & Co., Chartered Accountants, have been appointed as the statutory auditors of DEF Ltd., which is a listed company, for the Financial…

As per SA 220, “Quality Control for an audit of Financial Statements”, leadership responsibility of an engagement partner is to take responsibility for the overall quality on each audit engagement. The actions of the engagement partner CA X and appropriate messages to the other members of the engagement team, in taking responsibility for the overall quality on each audit engagement, emphasise on: (I) The importance to audit quality of: (i) Performing work that complies with professional standards and regulatory and legal requirements; (ii) Complying with the firm's quality control policies and procedures as applicable; (iii) Issuing auditor's reports that are appropriate in the circumstances; and (iv) The engagement team's ability to raise concerns without fear of reprisals. (II) The fact that quality is essential in performing audit engagements.