## SA 220 – Quality Control for Audit of Financial Statements
### What is SA 220?
SA 220 deals with Quality Control specifically at the engagement level for audits of financial statements.
> Key Premise: SA 220 is based on the assumption that the firm is already subject to SQC 1 (firm-level quality control). SA 220 builds on top of SQC 1 at the individual engagement level.
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### Applicability
SA 220 applies to:
- Audit engagements
- Review engagements
- Assurance engagements
- Related service engagements
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### Two Levels of Quality Control
| Level | Standard | Responsibility |
|---|---|---|
| Firm Level | SQC 1 | Managing Partner |
| Engagement Level | SA 220 | Engagement Partner |
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### Objectives of SA 220
To implement quality control procedures at the engagement level so as to:
Objective (a): Ensure the audit complies with:
- Professional Standards
- Regulatory Requirements
- Legal Requirements
Objective (b): Enable the auditor to issue an appropriate audit report.
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### Engagement Partner's Responsibility for Quality
The Engagement Partner bears overall responsibility for the quality of each audit engagement.
This responsibility emphasises the importance of:
1. Achieving Objective (a) of SA 220 (compliance with standards/law)
2. Achieving Objective (b) of SA 220 (appropriate report)
3. Complying with the Firm's Quality Control Policies & Procedures (under SQC 1)
4. Enabling every engagement team member to raise concerns without fear of reprisals
5. Recognising that quality is essential in performing audit engagements
> Exam Tip: If a question asks about elements of SA 220 not explicitly covered in SA 220 notes, write the corresponding content from SQC 1 — the two standards are complementary.