M ODULE 9 S TANDARDS ON A UDITING CA. S RIPRIYA K UMAR Practical/ Article Training

A Q UICK R ECAP Financial Statements AuditingAssertions Introduction to Audit Procedures Detailed understanding of Audit Procedures Standards on Auditing 2

L EARNING O BJECTIVES Why do we need SA’s What are the Various SA’s 3

W HY SA’ S ? We need SA’s to ensure that we perform audit work uniformly as the CA fraternity and Audit Risks are mitigated ICAI in their role as a Regulator has developed these Standards to be implemented by one and all 4

S TANDARDS ON A UDITING Standards on Quality Control: Relate services (SRS) & Others SQC General Principles and Responsibilities Risk Assessment and Response to Assessed Risks Audit Evidence Using Work of Others 600 – 699 Audit Conclusions and Reporting Specialized Areas Standards on Review Engagements (SREs)

T HE F RAMEWORK OF SA’ S 6 Standards on quality Control (SQC) Relate services (SRS) Others General Principles and Responsibilit ies Risk Assessment and Response to Assessed Risks Audit Evidence Using Work of Others Audit Conclusions and Reporting Specialized Areas Standards on Review Engageme nts (SREs) SQC 1SA 200SA 300SA 500SA 600SA 700SA 800SRE 2400 SA 210SA 315SA 501SA 610SA 705SA 805SRE 2401 SRS 4400SA 220SA 320SA 505SA 620SA 706SA 810 SRS 4410SA 230SA 330SA 510SA 710 SA 240SA 402SA 520SA 720 SAE 3400SA 250SA 450SA 530 SAE 3402SA 260SA 540 SA 265SA 550 SA 299SA 560 SA 570 SA 580

S TANDARDS ON A UDITING An Intro.

SA : G ENERAL P RINCIPLES & R ESPONSIBILITIES 8 SA 200 (Revised) issued under the Clarity Project, “Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing” SA 210 (Revised) under the Clarity Project, “Agreeing the Terms of Audit Engagements” SA 220 (Revised) issued under the Clarity Project, “Quality Control for an Audit of Financial Statements” SA 230 (Revised) under the Clarity Project, “Audit Documentation” SA 240 (Revised) under the Clarity Project, “The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements” SA 250 (Revised) under the Clarity Project, “Consideration of Laws and Regulations in an Audit of Financial Statements” SA 260 (Revised) under the Clarity Project, “Communication with Those Charged with Governance” SA 265 issued under the Clarity Project, “Communicating Deficiencies in Internal Control to Those Charged With Governance and Management” SA 299 (AAS 12) “Responsibility of Joint Auditors”

SA : R ISK A SSESSMENT AND R ESPONSE TO A SSESSED R ISKS 9 SA 300 (Revised) under the Clarity Project, “Planning an Audit of Financial Statements” SA 315 under the Clarity Project, “Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment” SA 320 (Revised) issued under the Clarity Project, “Materiality in Planning and Performing an Audit” SA 330 under the Clarity Project, “The Auditor’s Responses to Assessed Risks” SA 402 (Revised) issued under the Clarity Project, “Audit Considerations Relating to an Entity Using a Service Organisation” SA 450 issued under the Clarity Project, “Evaluation of Misstatements Identified During the Audit”

SA : A UDIT E VIDENCE 10 SA 500 (Revised) under the Clarity Project, “Audit Evidence” SA 501 (Revised) issued under the Clarity Project, “Audit Evidence—Specific Considerations for Selected Items” SA 505 (Revised) issued under the Clarity Project, “External Confirmations” SA 510 (Revised) under the Clarity Project, “Initial Audit Engagements – Opening Balances” SA 520 (Revised) issued under the Clarity Project, “Analytical Procedures” SA 530 (Revised) under the Clarity Project, “Audit Sampling” SA 540 (Revised) under the Clarity Project, “Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures” SA 550 (Revised) under the Clarity Project, “Related Parties” SA 560 (Revised) under the Clarity Project, “Subsequent Events” SA 570 (Revised) under the Clarity Project, “Going Concern” SA 580 (Revised) under the Clarity Project, ”Written Representations”

SA U SING W ORK OF O THERS 11 SA 600 (AAS 10) “Using the Work of Another Auditor” SA 610 (Revised) issued under the Clarity Project, “Using The Work of Internal Auditors” SA 620 (Revised) issued under the Clarity Project, “Using the Work of an Auditor’s Expert”

SA A UDIT C ONCLUSIONS AND R EPORTING 12 SA 700 (Revised) issued under the Clarity Project, “Forming an Opinion and Reporting on Financial Statements SA 705 issued under the Clarity Project, “Modifications to the Opinion in the Independent Auditor’s Report" SA 706 issued under the Clarity Project, “Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report" SA 710 (Revised) issued under the Clarity Project, “Comparative Information— Corresponding Figures and Comparative Financial Statements” SA 720 under the Clarity Project, “The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements”

SA S PECIALIZED A REAS 13 SA 810 issued under the Clarity Project, “Engagements to Report on Summary Financial Statements” SA 805 issued under the Clarity Project, “Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement” SA 800 issued under the Clarity Project, “Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks”

S TANDARDS ON R EVIEW E NGAGEMENTS Specialized Areas SA 800 issued under the Clarity Project, “Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks” SA 805 issued under the Clarity Project, “Special Considerations— Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement” SA 810 issued under the Clarity Project, “Engagements to Report on Summary Financial Statements”

A SSURANCE E NGAGEMENTS O THER T HAN A UDITS OR R EVIEWS OF H ISTORICAL F INANCIAL I NFORMATION Standards on Assurance Engagements (SAEs) Applicable to All Assurance Engagements Subject Specific Standards SAE 3400 (AAS 35) “The Examination of Prospective Financial Information” SAE 3402 “Assurance Reports on Controls At a Service Organisation”

S TANDARDS ON R ELATED S ERVICES Standards on Related Services (SRSs) SRS 4400 (AAS 32) “Engagements to Perform Agreed-upon Procedures Regarding Financial Information” SRS 4410 (AAS 31) “Engagements to Compile Financial Information”

S TANDARDS ON Q UALITY C ONTROL 17 SQC 1 “Quality Control for Firms that Perform Audit and Reviews of Historical Financial Information, and other Assurance and Related Services Engagements” Announcement on Amendment to SQC 1 Retention Period for Engagement Documentation (Working Papers)

W HAT N EXT ? W HAT DO I D O ? I know what the Standards on Auditing Are !

T HANK Y OU Practical/ Article Training