Standards on Auditing
Updated on: Jun 15th, 2024
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3 min read
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 |
Quick Summary
Auditing and Assurance Standards board of ICAI formulates standards in line with IAASB, including SQCs, SAs, SREs, SAEs, and SRSs. Major standards include Quality Control, Auditing Standards, Review Engagements, Assurance Engagements, and Related Services. Specific standards are detailed for various audit processes like planning, evidence, communication, and reporting.
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