Standards on Auditing

[Pages:77]Standards on

Auditing

Standards on Auditing

(a)The Council of the ICAI has issued Quality Control and Engagement Standards.

(b) As per Section 143(2) of the Companies Act 2013, the report of Auditors should be after taking into account the AUDITING STANDARDS along with Accounting Standards & provisions of the Companies Act, 2013.

(c) If for any reason, a member has not been able to perform an audit in accordance with the applicable Auditing Standards, the report should draw attention to the material departures therefrom.

Why are Auditing Standards important?

Auditing Standards are mandatory to be by followed by practitioners under the direction issued by the Council of ICAI.

Section 143(9) of the Companies Act, 2013 requires every auditor to comply with the Auditing Standards.

If not complied with Auditing Standards in performing Assurance Engagement, CA shall be held guilty of Professional misconduct under Schedule-II to the Chartered Accountants Act, 1949.

COMPLIANCE

Audit Process- A Brief Overview

Obtain audit evidence Using audit techniques

Form conclusions on areas of financial statements

Issue an Audit Report

Acceptance of Audit

Perform Audit procedures

Examination of audit evidence

Sufficient and appropriate audit evidence

Form an appropriate audit opinion

SA 200:

Overall Objectives of the Independent Auditor and the conduct of an Audit in Accordance with Standards on Auditing.

SA 200: Overview of The Standard

SA 200 establishes the independent auditor's overall responsibilities when conducting an audit of financial statements in accordance with SAs.

The Standard explains the nature and scope of an audit designed to enable the independent auditor to meet those objectives.

The Standard also explains the scope, authority and structure of the SAs, and includes requirements establishing the general responsibilities of the independent auditor applicable in all audits, including the obligation to comply with the SAs.

The Standard has to be adapted as necessary in the circumstances when applied to audits of other historical financial information.

SA 200:Overall Objectives of the auditor

(a) To obtain reasonable assurance whether Financial Statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the F.S. are prepared, in all material respects, in accordance with an applicable Financial Reporting Framework, and

(b) To report on the Financial Statements and communicate as required by the SAs, in accordance with the auditor's findings.

SA 200:Overall Objectives of the auditor

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