To ensure that information provided in the financial statements are of high quality and are acceptable worldwide the Auditing and Assurance Standards board under the council of Institute of Chartered Accountants [ICAI] have formulated few Standards. These are in line with the International Standards issued by the International Auditing and Assurance Board [IAASB]. Standards issued by the AASB include :
- Standards of Quality Control [SQCs] For all the services under Engagement Standards. These standards are applicable to all auditing firms which perform audits and reviews of historical financial information including assurances and related service engagements.
- Standards on Auditing [SAs] For auditing historical financial information. These apply whenever any independent Audit is carried out.
In simpler words, whenever an independent examination of financial information is carried on for ANY entity whether the business motive is t make the profit or not, whether the size of the entity is big or small or even if the entity has any legal form [unless any lays specifies something else] the SAs will be applicable All SAs are interlinked and have to apply in unity. The number given to SA is similar to the numbering system followed for International Standards on Auditing formulated by IAASB.
- Standards on Review Engagements [SREs] for reviewing historical financial information
- Standards on Assurance Engagements [SAEs] for assurance engagements other than the audits and reviews of financial information
- Standards on Related Services [SRSs] for all engagements about the application of agreed procedures to information, compilation engagements, and other related services engagements
The major standards are listed here below:
| Standards on Quality Control [SQCs] | |
| SQC 1 | Quality Control for Firms that Perform Audit and Reviews of Historical Financial Information, and other Assurance and Related Services Engagements |
| Standards on Auditing [SAs] | |
| SA 200 | Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing |
| SA 210 | Agreeing the Terms of Audit Engagements |
| SA 220 | Quality Control for an Audit of Financial Statements |
| SA 230 | Audit Documentation |
| SA 240 | The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements |
| SA 250 | Consideration of Laws and Regulations in an Audit of Financial Statements |
| SA 260 | Communication with Those Charged with Governance |
| Revised SA 260 | Communication with Those Charged with Governance |
| SA 265 | Communicating Deficiencies in Internal Control to Those Charged with Governance and Management |
| SA 299 | Responsibility of Joint Auditors |
| Revised SA 299 | Joint Audit of Financial Statements |
| SA 300 | Planning an Audit of Financial Statements |
| SA 315 | Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment |
| SA 320 | Materiality in Planning and Performing an Audit |
| SA 330 | The Auditor’s Responses to Assessed Risks |
| SA 402 | Audit Considerations Relating to an Entity Using a Service Organisation |
| SA 450 | Evaluation of Misstatements Identified During the Audit |
| SA 500 | Audit Evidence |
| SA 501 | Audit Evidence-Specific Considerations for Selected Items |
| SA 505 | External Confirmations |
| SA 510 | Initial Audit Engagements – Opening Balances |
| SA 520 | Analytical Procedures |
| SA 530 | Audit Sampling |
| SA 540 | Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures |
| SA 550 | Related Parties |
| SA 560 | Subsequent Events |
| SA 570 | Going Concern |
| Revised SA 570 | Going Concern |
| SA 580 | Written Representations |
| SA 600 | Using the Work of Another Auditor |
| SA 610 | Using the Work of Internal Auditors |
| Revised SA 610 | Using the Work of Internal Auditors |
| SA 620 | Using the Work of an Auditor’s Expert |
| SA 700 | Forming an Opinion and Reporting on Financial Statements |
| Revised SA 700 | Forming an Opinion and Reporting on Financial Statements |
| SA 701 | Communicating Key Audit Matters in the Independent Auditor’s Report |
| SA 705 | Modifications to the Opinion in the Independent Auditor’s Report |
| Revised SA 705 | Modifications to the Opinion in the Independent Auditor’s Report |
| SA 706 | Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report |
| Revised SA 706 | Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report |
| SA 710 | Comparative Information—Corresponding Figures and Comparative Financial Statements |
| SA 720 | The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements |
| Revised SA 720 | The Auditor’s Responsibilities Relating to Other Information |
| SA 800 | Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks |
| SA 805 | Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement |
| SA 810 | Engagements to Report on Summary Financial Statements |
| Standards on Review Engagements [SREs] | |
| SRE 2400 | Engagements to Review Financial Statements |
| SRE 2400 [Revised] | Engagements to Review Historical Financial Statements |
| SRE 2410 | Review of Interim Financial Information Performed by the Independent Auditor of the Entity |
| Standards on Assurance Engagements [SAEs] | |
| SAE 3400 | The Examination of Prospective Financial Information |
| SAE 3402 | Assurance Reports on Controls At a Service Organisation |
| SAE 3420 | Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus |
| Standards on Related Services [SRSs] | |
| SRS 4400 | Engagements to Perform Agreed-upon Procedures Regarding Financial Information |
| SRS 4410 | Engagements to Compile Financial Information |
| SRS 4410 [Revised] | Compilation Engagements |
All Articles
- Audit Report – Basics, Format and Content
Opinions issued by an auditor in an audit report are Unmodified Opinion [also called Unqualified report], Modified Opinion [also called Qualified report]
- Statutory Audit of Banks
statutory audit of banks includes quantification of advances, deposits, interest income & expenses through verification of Cash & Loan Accounts, tax item
- Company Auditor’s Report Order [CARO], 2016 – Reporting Requirements
The MCA issued Company Auditor's Report Order CARO 2016 which auditor of entities are required to report after performing verification of each clause
- SRE 2410 Review Of Interim Financial Information Performed By The Independent
Auditor Of The Entity
SRE 2410 offer guidance on the professional responsibilities of an auditor against any engagement for reviewing the interim financial information client
- SA 710 Comparative Information— Corresponding Figures And Comparative Financial Statements
SA 710 deals with the responsibilities of an auditor with respect to comparative information in the audit of the financial statements.
- SAE 3420 Assurance Engagement to Report on the Compliance of Pro Forma
Financial Information Included in a Prospectus
SAE 3420 explains reasonable assurance engagement to report on responsible party’s compilation of pro forma financial information included in the prospectus
- SAE 3402 Assurance Reports on Controls at Service Organisation
SAE 3402 deals with the assurance engagement carried on by a professional accountant to report on controls at a service organization.
- SRS 4410 Compilation Engagements
SRS 4410 deals with responsibilities when engaged to help prepare financial information without acquiring an assurance information, reporting perse SRS 4410
- SAE 3400 The Examination of Prospective Financial Information
SAE 3400 provides guideline on engagement to examine & report on prospective financial information including examination procedure for estimate & assumption
- SA 620 Using the Work of an Auditor’s Expert
SA 620 Using the Work of an Auditor’s Expert- Auditor’s responsibility while using expert's work other than auditing or accounting to obtain audit evidence
- SA 610 Using the Work of Internal Auditors
SA 610 Using the Work of Internal Auditors deals with external auditor’s responsibilities while using other auditor’s work, scope and objective
- SA 600 Using the Work of Another Auditor
SA 600 Using the Work of Another Auditor deals with the responsibility of the principal auditor in relation to the use of work of other auditors
- SA 330 Auditor’s Responses To Assessed Risk
SA 330 deals with auditor’s responsibility to design & implement responses to assessed risk of material misstatement identified in accordance with SA 315
- SRE 2400 Engagements to review Financial Statements
SRE 2400 provides guidance on the professional responsibilities for engagement of reviewing the financial statements, content and form of report issued
- SA 450 Evaluation of Misstatement Identified During the Audit
SA 450 Evaluation of Misstatement Identified During Audit explains auditor’s responsibility to evaluate the effect of identified & uncorrected misstatements
- SQC 1 Standard on Quality Control
SQC 1 Standard on Quality Control - responsibilities of a firm for quality control for audits, reviews and other assurance and related services engagements
- SRS 4400 Engagements to perform agreed upon procedures regarding financial information
SRS 4400 provides guidance on responsibilities of an auditor and content and form of the report which the auditor would issue following such engagements
- SA 701 Communicating Key Audit Matters in the Independent Auditor’s Report
SA 701 deals with the responsibilities of an auditor to communicate the key audit matters in his/her audit report.
- SA 700 Forming an Opinion and Reporting on Financial Statements
SA 700 states the responsibilities of auditor in forming opinion on Financial Statements and Form & Content of unmodified Audit Report
- SA 315 Identifying and Assessing the Risk of Material Misstatement Through Understanding the Entity and Its
Environment
SA 315 Identifying and Assessing the Risk of Material Misstatement Through Understanding the Entity and Its Environment deals is critical for a organisation
- SA 210 [REVISED] Agreeing The Terms of Audit Engagement
SA 210 deals with preconditions to be followed prior agreeing to terms of Audit engagement with the management & certain additional considerations
- SA 240 – The Auditor’s Responsibility Relating to Fraud In An Audit Of Financial
Statements
SA 240 gives the auditor an ideal approach for identification of fraud & assessment of its Impact on making an opinion on the financial statements audited.
- SA 300 Planning an Audit of Financial Statements
SA 300 entails Auditor's duties while planning Audit of Financial Statements especially in case of recurring audit engagements with sample Audit Plan
- SA 200 Objective Of Independent Auditor Conduct Of Audit
SA 200 Objective Of Independent Auditor Conduct Of Audit applicability, scope, requirements, definition, complying with other standards