Accounting and Auditing

Standards on Auditing

In order to facilitate understanding of the scope and authority of the pronouncements of the Auditing and Assurance Standards Board (‘AASB’), the ICAI has issued revised preface viz., Preface to Standards on Quality Control for Auditing, Review, Other Assurance and Related Services, which has come into effect from 1st April, 2008. Standards of the following nature issued by the AASB shall be collectively known as ‘the Engagement Standards’:

Standards on Quality Control (SQC) are applicable to the auditing firms which performs Audits and Reviews of Historical Financial information and other Assurance and related services engagements.

Standards on Auditing (SAs), to be applied in the audit of historical financial information.

Standards on Review Engagements (SREs), to be applied in the review of historical financial information.

Standards on Assurance Engagements (SAEs), to be applied in assurance engagements, dealing with subject matters other than historical financial information.

Standards on Related Services (SRSs), to be applied to engagements involving application of agreed upon procedures to information, compilation engagements, and other related services engagements, as may be specified by the ICAI.

Auditing and Assurance Standard (‘AAS’) have been re-numbered and classified in the above five categories as Standards on Auditing:

LIST OF STATEMENTS AND STANDARDS AS ON 1-4-2019

SA	Subject	Dated
SQC 1	Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements	01-04-2009
200	Overall objectives of the Independent Auditor and the conduct of an Audit in accordance with Standards on Auditing	01-04-2010
210	Terms of Audit Engagements	01-04-2010
220	Quality Control for an Audit of Financial Statements	01-04-2010
230	Audit Documentation (Revised 2018)	01-04-2009
240	The Auditor’s Responsibility Relating to Fraud in an Audit of Financial Statements	01-04-2009
250	Consideration of Laws and Regulations in an Audit of Financial Statements	01-04-2009
260	Communication with those Charged with Governance	01-04-2017
265	Communicating Deficiencies in Internal Control to those Charged with Governance and Management	01-04-2010
299	Responsibility of Joint Auditors	01-04-1996
300	Planning of Audit of Financial Statements	01-04-2008
315	Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment	01-04-2008
320	Materiality in Planning and Performing an Audit	01-04-2010
330	The Auditor’s Response to Assessed Risks	01-04-2008
402	Audit Considerations Relating to an Entity Using a Service Organisation	01-04-2010
450	Evaluation of Misstatements Identified during the Audit	01-04-2010
500	Audit Evidence	01-04-2009
501	Audit Evidence – Specific Considerations for Selected Items	01-04-2010
505	External Confirmations	01-04-2010
510	Initial Audit Engagements – Opening Balances	01-04-2010
520	Analytical Procedures	01-04-2010
530	Audit Sampling	01-04-2009
540	Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures	01-04-2009
550	Related Parties	01-04-2010
560	Subsequent Events	01-04-2009
570	Going Concern	01-04-2017
580	Written Representations	01-04-2009
600	Using the work of Another Auditor	01-04-2002
610	Using the work of an Internal Auditor (Revised 2018)	01-04-2010
620	Using work of an Auditor’s expert	01-04-2010
700	Forming an Opinion and Reporting on Financial Statements (Revised)	01-04-2018
701	Communicating Key Audit Matters in the Independent Auditor’s Report	01-04-2018
705	Modifications to the Opinion in the Independent Auditor’s Report (Revised)	01-04-2018
706	Emphasis of Matter Paragraphs and Order Matter Paragraphs in the Independent Auditor’s Report (Revised)	01-04-2018
710	Comparatives Information – Corresponding Figures and Comparative Financial Statements	01-04-2011
720	The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements	01-04-2010
800	Special Consideration – Audits of Financial Statements Prepared in Accordance with Special Purpose Framework	01-04-2011
805	Special Consideration – Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement	01-04-2011
810	Engagements to Report on Summary Financial Statements	01-04-2011
SRE	Standards on Review Engagements
2400	Engagements to Review Historical Financial Statements	01-04-2010
2410	Review of Interim Financial Information Performed by the Independent Auditor of the Entity	01-04-2010
Assurance Engagements other than Audits or Reviews of Historical Financial information
SAE	Standards on Assurance Engagements
3400	The Examination of Prospective Financial Information	01-04-2007
3402	Assurance Reports on Controls at a Service Organisation	01-04-2011
3420	Assurance Engagements to Report on the Compilation of Pro Forma Financial Information included in a Prospectus	01-04-2016
SRS	Standards on Related Services
4400	Engagements to Perform Agreed-upon Procedures Regarding Financial Information	01-04-2004
4410	Compilation Engagements	01-04-2004
D.	Statements on Auditing
1	Statement on Auditing Practices
2	Statement on Qualifications in Auditor’s Report
3	Statement on CARO 2016
4	Statement of payments to Auditors for other services
5	Statement on responsibility of Joint Auditors
E.	Guidance Notes
I	Guidance Note on Tax Audit u/s. 44AB of Income-tax Act, 1961
II	Guidance Notes on Accounting Aspects
1	Guidance Note on Turnover in case of Contractors
2	Guidance Note on Applicability of Accounting Standard (AS) – 25 to Interim Financial Results
3	Guidance Note on Remuneration paid to key management personnel – Whether a related party transaction
4	Guidance Note on Applicability of Accounting Standard (AS) – 20, Earnings Per Share
5	Guidance Note on Terms used in Financial Statements
6	Guidance Note on Treatment of Reserves created on Revaluation of Fixed Asset
7	Guidance Note on Accrual Basis of Accounting
8	Guidance Note on Accounting for Depreciation in Companies
9	Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares
10	Guidance Note on Accounting for Corporate Dividend Tax
11	Guidance Note on Accounting for Treatment of Excise Duty
12	Guidance Note on Accounting for Dot Com Companies
13	Guidance Note on Accounting for Employee Share Based Payments
14	Guidance Note on Accounting for State Level Value Added Tax
15	Guidance Note on Accounting for Fringe Benefits Tax
16	Guidance Note on Accounting by Schools
17	Guidance Note on Accounting for Credit available in respect of Minimum Alternative Tax under the Income-tax Act, 1961
18	Guidance Note on Accounting on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25
19	Guidance Note on Accounting for MODVAT/CENVAT
20	Guidance Note on Accounting of Self-Generated Certified Emission Reductions (CERs) (Issued 2012)
21	Guidance Note on Accounting for Rate Regulated Activities
22	Guidance Note on Accounting for Real Estate Transaction (Revised 2012)
23	Guidance Note on Oil and Gas Producing Activities (Ind AS)
24	Guidance Note on Accounting for Derivative Contracts
25	Guidance Note on Expenditure on Corporate Social Responsibility Activities
26	Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable)
27	Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
28	Guidance Note on Accounting and Auditing of Political Parties
29	Guidance Note on Combined and Carve-Out Financial Statements
III	Guidance Notes on Auditing Aspects
1	Audit of Abridged Financial Statements
2	Audit of Accounts of Non-Corporate Entities
3	Audit of Cash and Bank Balances
4	Audit of Consolidated Financial Statements
5	Audit of Debtors, Loans & Advances
6	Audit of Expenses
7	Audit of Investments
8	Audit of Liabilities
9	Audit of Miscellaneous Expenditure (Revised)
10	Audit of Payment of Dividend
11	Audit of Revenue
12	Audit Reports and Certificates for Special Purposes
13	Audit of Accounts of Liquidators
14	Auditor’s Report on Revised Accounts of Companies Before Circulation to Shareholders
15	Capital & Reserves
16	Certificate on Corporate Governance
17	Certificate to be issued by the Auditor of a Company pursuant to Companies (Acceptance of Deposits) Rules, 1973
18	Certificate of Documents for Registration of Charges
19	Computer Assisted Audit Techniques (CAATs)
20	Duty Cast on the Auditors u/s. 45-MA of the Reserve Bank of India Act, 1934
21	Independence of Auditors (Revised)
22	Preparation of Financial Statements on Letterheads and Stationery of Auditors
23	Provision for Proposed Dividend
24	Revision/Rectification of Financial Statements
25	Sections 227(3)(e) and (f) of the Companies Act, 1956 (Revised)
26	Section 293A of the Companies Act and the Auditor
27	Special considerations in the Audit of Small Entities
28	Audit of Property, Plant & Equipment
29	Certification of XBRL Financial Statements
IV	Industry Specific Guidance Notes:
1	Audit of Banks 2019 edition
2	Audit of Members of Stock Exchanges
3	Audit of Companies Carrying on General Insurance Business
4	Audit of Companies Carrying on Life Insurance Business.
5	Guidance on Reporting under the Companies (Auditor’s Report) Order, 2016 (CARO, 2016)
6	Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013
7	Reports in Company Prospectuses (Revised 2019)
8	Guidance Note on Reporting under Section 143(3)(f) of the Act and Reporting under Section 143(3)(h) of the Act
Secretarial Standards notified under the Companies Act, 2013
SS1	Meetings of the Board of Directors
SS2	General Meetings

New and revised SAs	Description of changes and scope
SA 700 (Revised), Forming an Opinion and Reporting on Financial Statements	Revisions to establish new required reporting elements, and to illustrate these new elements through an example in the auditor’s report.
SA 701, Communicating Key Audit Matters in the Independent Auditor’s Report	New standard to establish requirements and guidance for the auditor’s determination and communication of Key Audit Matters (KAMs). The KAMs which are selected from matters communicated to those charged with governance, are required to be communicated in the auditor’s reports for audits of financial statements of listed entities. *Note*: Presently the KAM are required to be given only for audit reports on General Purpose Financial Statements of listed entities or in situations where auditor otherwise decides to communicate KAM. ICAI has released an implementation guide to SA 701
SA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report	Clarification of how the new reporting elements are affected when expressing a modified opinion.
SA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report	Clarification of the relationship between the emphasis of matter and other matter paragraphs and KAM section of the auditor’s report.
SA 570 (Revised) Going Concern	The Emphasis of Matter Paragraph has been replaced by “Materiality Uncertainty over Going Concern”. The content of the two is the same