1. Accounting Standards & Auditing & Assurance Standards
C. P. Mansoor S. Ahmed.,
M. Com, PGDBA

2. Introduction – Accounting Standards
Accounting Standard Board - ASB
AS is a selected set of accounting policies
Broad guidelines regarding the principles and methods to be chosen out of the alternatives.
ASB – authority in India
Harmonize diversified policies to make the system effective and useful.
ASB – 1977
International Accounting Standards Committee – IASC
M & M Ahmed
Wednesday, 14 November 2018Wednesday, 14 November 2018

3. Introduction – Auditing & Assurance Standards
Auditing Practices Committee – Auditing & Assurance Standard Board
Statements on Standard Auditing Practices – Auditing Assurance Standard
Framework of services of an auditor
Who Why When Where How
M & M Ahmed
Wednesday, 14 November 2018Wednesday, 14 November 2018

4. Auditing & Assurance Standard AAS 1 Basic Principle Governing An Audit!
Professional Responsibility
Independent Examination of Financial Statements irrespective of its Size, or Legal Form
Compliance with basic principles – requires application of auditing procedure and reporting practices
Integrity, Objectivity and Independence
Confidentiality
Relying on work performed by others; Delegation
Documentation
Planning – Time Management
Audit Evidence
Accounting System & Internal Control
Audit Conclusions & Reporting
M & M Ahmed
Wednesday, 14 November 2018Wednesday, 14 November 2018

5. Indian Accounting Standard 1 Disclosure of Accounting Policies!
Significant Accounting Policies
Impact of Accounting Policies on the Financial Statements
Legal Requirement – Disclosure
ICAI Recommends – translation policies of Foreign Currency Items
Notes to the Accounts – Disclosure (Subjective)
Better Understanding and a meaningful comparisons of firms
Following are the fundamental accounting assumptions:
Going Concern
Consistency
Accrual
M & M Ahmed
Wednesday, 14 November 2018Wednesday, 14 November 2018

6. Indian Accounting Standard 1 Disclosure of Accounting Policies!
Methods of Depreciation
Treatment of Expenditure during Construction
Conversion or translation of Foreign currency items
Valuation of Inventories
Valuation of Goodwill
Valuation of Investments
Treatment of Retirement Benefits
Recognition of Profits on long term contracts
Valuation of fixed assets
Treatment of Contingent Liabilities
Differing Situation
M & M Ahmed
Wednesday, 14 November 2018Wednesday, 14 November 2018

7. Indian Accounting Standard 1 Disclosure of Accounting Policies!
Should Exhibit true & Fair view of the state of affairs
Major governing consideration for selection are
Prudence - Profits
Substance over form – content over law
Materiality – influential to users decision
M & M Ahmed
Wednesday, 14 November 2018Wednesday, 14 November 2018

8. Indian Accounting Standard 1 Disclosure of Accounting Policies!
Disclosure – Understanding
As a part of Financial Statement
One set preferred over many statements, Schedules and notes
Change in Accounting Policy
Impact of Change on Financial Statement as a result of change in Accounting Policy
M & M Ahmed
Wednesday, 14 November 2018Wednesday, 14 November 2018