SQC 1 - The firm should establish quality control policies and procedures in the following :

1) Independence

Mnemonic: CovId Elimination Resolution

Connection to Mnemonic: To have an independent life in future, everyone should take a resolution in this new year to eliminate covid.

Policies & procedures should enable:

  1. Communication of independence requirements to personnel & others
  2. Identification of circumstances threatening independence.
  3. Take appropriate action for the elimination of threats/withdrawal from engagement.
  4. Resolution of breaches of independence.


2) Monitoring

Establish Policies & procedures to reasonably assure that QC policies procedures are

Mnemonic:  CARO

  • Complied within the practice.
  • Adequate.
  • Relevant.
  • Operating effectively.


(Note: Only an extract of the answer is discussed here for which we are having mnemonic)


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