refresher : standards on auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699:...
TRANSCRIPT
![Page 1: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/1.jpg)
1 MPVijayKumarFCA
Refresher:StandardsonAuditing
MPVijayKumar FCA
![Page 2: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/2.jpg)
2 MPVijayKumarFCA
INSURANCE !!
Theviewsexpressedarethoseofthepresenterand,therefore,donotnecessarilyrepresenttheviewsofeithertheCounciloranyCommittee(s)/Board(s)oftheCounciloftheInstituteofCharteredAccountantsofIndia(ICAI).
• Theslidedeckshouldbeunderstoodincontextofthespeakerpresentation
• E&OE
![Page 3: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/3.jpg)
3 MPVijayKumarFCA
AuditingStandards
• Standards on Quality Control (SQCs)
• Engagement Standards -• Standards on Auditing (SA)• Standards on Review Engagements (SREs)§ Standards on Assurance Engagements(SAEs)§ Standards on Related Services (SRSs)
![Page 4: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/4.jpg)
4 MPVijayKumarFCA
Context
• Now, SA is LAW - notified under Companies Act, 2013
• Rotation of Auditors
• Certification on IFC
• Fraud reporting – direct to Govt
• Disciplinary mechanism increased effectiveness; Code of Ethics ( R)
• Peer Review / FRRB /QRB
![Page 5: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/5.jpg)
5 MPVijayKumarFCA
Context
• Audit Opinion –High impact on all stakeholders
• Technology – sample to population
• Applicable to every Audit including Tax audit, bank branch audit
• Changing requirements; SBN reporting, Significant impact onDeferred tax due to ICDS
• Business getting complex; AS becoming too technical andjudgement oriented; lack of adequate staff in auditee
• Unreasonably high expectations from Auditors
• C&AG report (2014) on Tax Audit - ineffectiveness
![Page 6: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/6.jpg)
6 MPVijayKumarFCA
AuditingStandards
• Engagement Standards - These are classified into followingcategories
• 100 – 999 Standards on Auditing (SAs)• 100 – 199: Introductory Matters• 200 - 299: General Principles & Responsibilities• 300 – 499: Risk Assessment & Response to Assessed Risks• 500 – 599: Audit Evidence• 600 – 699: Using Work of Others• 700 – 799: Audit Conclusions & Reporting• 800 – 899: Specialised Areas
§ 2000 – 2699: Standards on Review Engagements (SREs)§ 3000 – 3699: Standards on Assurance Engagements(SAEs)§ 4000 – 4699: Standards on Related Services (SRSs)
![Page 7: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/7.jpg)
7 MPVijayKumarFCA
S.No Reference Titleofthestandard Effectivedate
1 SQC1QualityControlforFirmsthatperformauditandreviewsofHistoricalFinancialInformation,andotherAssuranceandrelatedServiceEngagements
1stApril2009
2 SA200 OverallObjectivesoftheIndependentAuditorandtheConductofanAuditinAccordancewithStandardsonAuditing 1stApril2010
3 SA210 AgreeingtheTermsofAuditEngagement 1stApril2010
4 SA220 QualityControlforanAuditofFinancialStatements 1stApril2010
5 SA230 AuditDocumentation 1stApril2009
6 SA240 TheAuditor'sResponsibilitiesRelatingtoFraudinanAuditofFinancialStatements 1stApril2009
7 SA250 ConsiderationofLawsandRegulationsinAnAuditofFinancialStatements 1stApril2009
8 SA260(R) CommunicationwithThoseChargedwithGovernance 1stApril2017
9 SA265 CommunicatingDeficienciesinInternalControltoThoseChargedwithGovernanceandManagement 1stApril2010
10 SA299 ResponsibilityofJointAuditors 1stApril1996
![Page 8: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/8.jpg)
8 MPVijayKumarFCA
S.No Reference Titleofthestandard Effectivedate
11 SA300 PlanninganAuditofFinancialStatements 1stApril2008
12 SA315IdentifyingandAssessingtheRisksofMaterialMisstatementsthroughUnderstandingtheEntityanditsEnvironment
1stApril2008
13 SA320 MaterialityinPlanningandPerforminganAudit 1stApril2010
14 SA330 TheAuditor'sResponsetoAssessedRisks 1stApril2008
15 SA402 AuditConsiderationsRelatingtoEntitiesUsingServiceOrganisations 1stApril2010
16 SA450 EvaluationofMisstatementsidentifiedDuringtheAudit 1stApril2010
17 SA500 AuditEvidence 1stApril2009
18 SA501 AuditEvidence—SpecificConsiderationsforSelectedItems 1stApril2010
19 SA505 ExternalConfirmations 1stApril2010
20 SA510 InitialAuditEngagements– OpeningBalances 1stApril2010
![Page 9: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/9.jpg)
9 MPVijayKumarFCA
S.No Reference Titleofthestandard Effectivedate
21 SA520 AnalyticalProcedures 1stApril2010
22 SA530 AuditSampling 1stApril2009
23 SA540 AuditingAccountingEstimates,IncludingFairValueAccountingEstimatesandRelatedDisclosures 1stApril2009
24 SA550 RelatedParties 1stApril2010
25 SA560 SubsequentEvents 1stApril2009
26 SA570(R) GoingConcern 1stApril2017
27 SA580 WrittenRepresentations 1stApril2009
28 SA600 UsingtheWorkofAnotherAuditor 1stApril2002
29 SA610(R) UsingtheWorkofInternalAuditors 1stApril2016
30 SA620 UsingtheWorkofanAuditor’sExpert 1stApril2010
![Page 10: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/10.jpg)
10 MPVijayKumarFCA
S.No Reference Titleofthestandard Effectivedate
31 SA700(R) ForminganOpinionandReportingonFinancialStatements
1stApril2011/18
32 SA701 CommunicatingKeyAuditMattersintheIndependentAuditor’sReport 1stApril2018
33 SA705(R) ModificationstotheOpinionintheIndependentAuditor'sReport
1stApril2011/18
34 SA706(R) EmphasisofMatterParagraphsandOtherMatterParagraphsintheIndependentAuditor'sReport
1stApril2011/18
35 SA710 ComparativeInformation- CorrespondingfiguresandComparativefinancialstatements 1stApril2011
36 SA720TheAuditor’sResponsibilityinRelationtoOtherInformationinDocumentsContainingAuditedFinancialStatements
1stApril2010
37 SA800 SpecialConsiderations-AuditsofFinancialStatementsPreparedinAccordancewithSpecialPurposeFramework 1stApril2011
38 SA805SpecialConsiderations-AuditsofSinglePurposeFinancialStatementsandSpecificElements,AccountsorItemsofaFinancialStatement
1stApril2011
39 SA810 EngagementstoReportonSummaryFinancialStatements 1stApril2011
40 SRE2400(R) EngagementstoReviewHistoricalFinancialStatements 1stApril2016
![Page 11: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/11.jpg)
11 MPVijayKumarFCA
S.No Reference Titleofthestandard Effectivedate
39 SA810 EngagementstoReportonSummaryFinancialStatements 1stApril2011
40 SRE2400(R) EngagementstoReviewHistoricalFinancialStatements 1stApril2016
41 SRE2410 ReviewofInterimFinancialInformationPerformedbytheIndependentAuditoroftheEntity 1stApril2010
42 SAE3400 TheExaminationofProspectiveFinancialInformation 1stApril2007
43 SAE3402 AssuranceReportsonControlsAtaServiceOrganization 1stApril2011
44 SA3420 AssuranceEngagementstoReportontheCompilationofProFormaFinancialInformationIncludedinaProspectus 1stApril2016
45 SRS4400 EngagementstoPerformAgreed-uponProceduresRegardingFinancialInformation 1stApril2004
46 SRS4410(R) CompilationsEngagements 1stApril2016
GeneralClarificationsissued
47 GeneralClarifications(GC)- AASB/2/2004onSA210
48 GeneralClarifications(GC)- AASB/1/2004onSA620
![Page 12: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/12.jpg)
12 MPVijayKumarFCA
200-299:GeneralPrinciplesandResponsibilities(9)• SA200(Revised)“OverallObjectivesoftheIndependentAuditorandtheConductofanAuditinAccordancewithStandardsonAuditing”
• SA210(Revised),“AgreeingtheTermsofAuditEngagements”
• SA220(Revised),“QualityControlforanAuditofFinancialStatements”
• SA230(Revised)“AuditDocumentation”
![Page 13: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/13.jpg)
13 MPVijayKumarFCA
200-299:GeneralPrinciplesandResponsibilities
• SA240(Revised)“TheAuditor’sResponsibilitiesRelatingtoFraudinanAuditofFinancialStatements”
• SA250(Revised)“ConsiderationofLawsandRegulationsinanAuditofFinancialStatements”
• SA260(Revised)“CommunicationwithThoseChargedwithGovernance”
• SA265“CommunicatingDeficienciesinInternalControltoThoseChargedWithGovernanceandManagement”
• SA299(AAS12),“ResponsibilityofJointAuditors”
![Page 14: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/14.jpg)
14 MPVijayKumarFCA
300-499:RiskAssessmentandResponsetoAssessedRisks(6)
• SA300(Revised),“PlanninganAuditofFinancialStatements”•
• SA315,“IdentifyingandAssessingtheRisksofMaterialMisstatementthroughUnderstandingtheEntityandItsEnvironment”
• SA320(Revised),“MaterialityinPlanningandPerforminganAudit”
• SA330“TheAuditor’sResponsestoAssessedRisks”
• SA402(Revised)“AuditConsiderationsRelatingtoanEntityUsingaServiceOrganisation”
• SA450,“EvaluationofMisstatementsIdentifiedDuringtheAudit”
![Page 15: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/15.jpg)
15 MPVijayKumarFCA
500-599AuditEvidence(11)
• SA500(Revised)“AuditEvidence”
• SA501(Revised)“AuditEvidence—SpecificConsiderationsforSelectedItems”
• SA505(Revised)“ExternalConfirmations”
• SA510(Revised)“InitialAuditEngagements– OpeningBalances”
• SA520(Revised),“AnalyticalProcedures”
![Page 16: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/16.jpg)
16 MPVijayKumarFCA
500-599AuditEvidence
• SA530(Revised),“AuditSampling”
• SA540(Revised)“AuditingAccountingEstimates,IncludingFairValueAccountingEstimates,andRelatedDisclosures”
• SA550(Revised)“RelatedParties”
• SA560(Revised)“SubsequentEvents”
• SA570(Revised)“GoingConcern”
• SA580(Revised),”WrittenRepresentations”
![Page 17: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/17.jpg)
17 MPVijayKumarFCA
600-699:Usingworkofothers(3)• SA600(AAS10),“UsingtheWorkofAnotherAuditor”
• SA610(Revised)“UsingTheWorkofInternalAuditors”
• SA620(Revised)“UsingtheWorkofanAuditor’sExpert”
![Page 18: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/18.jpg)
18 MPVijayKumarFCA
700-799:AuditConclusionsandReporting(6)• SA700(Revised),ForminganOpinionandReportingonFinancialStatements
• SA701, CommunicatingKeyAuditMattersintheIndependentAuditor’sReport
• SA705,ModificationstotheOpinionintheIndependentAuditor’sReport
• SA706“EmphasisofMatterParagraphsandOtherMatterParagraphsintheIndependentAuditor’sReport”
• SA710(Revised)“ComparativeInformation—CorrespondingFiguresandComparativeFinancialStatements”
• SA720“TheAuditor’sResponsibilityinRelationtoOtherInformationinDocumentsContainingAuditedFinancialStatements”
![Page 19: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/19.jpg)
19 MPVijayKumarFCA
800-899:Specialpurpose(3)
• SA800“AuditsofFinancialStatementsPreparedinAccordancewithSpecialPurposeFrameworks”
• SA805“SpecialConsiderations—AuditsofSingleFinancialStatementsandSpecificElements,AccountsorItemsofaFinancialStatement”
• SA810“EngagementstoReportonSummaryFinancialStatements”
![Page 20: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/20.jpg)
20 MPVijayKumarFCA
2000-2699:StandardsonReviewEngagements(2)
• SRE2400(Revised),EngagementstoReviewHistoricalFinancialStatements
• SRE2410“ReviewofInterimFinancialInformationPerformedbytheIndependentAuditoroftheEntity”
![Page 21: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/21.jpg)
21 MPVijayKumarFCA
3000:3699:StandardsonAssuranceEngagements(3)• 3000-3399ApplicabletoAllAssuranceEngagements• 3400-3699SubjectSpecificStandards
• SAE3400(AAS35),“TheExaminationofProspectiveFinancialInformation”
• SAE3402,“AssuranceReportsonControlsataServiceOrganisation”
• SAE3420,AssuranceEngagementstoReportontheCompilationofProformaFinancialInformationIncludedinaProspectus
![Page 22: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/22.jpg)
22 MPVijayKumarFCA
4000-4699:StandardsonRelatedServices(2)• SRS4400(AAS32),“EngagementstoPerformAgreed-uponProceduresRegardingFinancialInformation”
• SRS4410(Revised),CompilationEngagements
![Page 23: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/23.jpg)
23 MPVijayKumarFCA
SQC(1)
• SQC1,“QualityControlforFirmsthatPerformAuditandReviewsofHistoricalFinancialInformation,andotherAssuranceandRelatedServicesEngagements”
![Page 24: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/24.jpg)
24 MPVijayKumarFCA
MAJOR DIFFERECNES INEngagement & Quality Control Standards issued by ICAI and Standards issued by IAASB
![Page 25: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/25.jpg)
25 MPVijayKumarFCA
SA- ICAIStandardsvis-à-visISA-IAASBstandards
S.No. Standardissuedby
ICAI
Whetheranydifferencevis avisStandardissuedby
IAASB
S.No. Standardissuedby
ICAI
Whetheranydifferencevis avisStandardissuedby
IAASB
S.No. Standardissuedby
ICAI
WhetheranydifferencevisavisStandardissuedby
IAASB1. SQC1 ü 15. SA450 ü 30. SA705 ü
2. SA200 ü 16. SA500 X 31. SA706 X3. SA210 ü 17. SA501 X 32. SA710 ü
4. SA220 ü 18. SA505 X 33. SA720 ü
5. SA230 ü 19. SA510 ü 34. SA800 ü
6. SA240 ü 20. SA520 X 35. SA805 ü
7. SA250 ü 21. SA530 X 36. SA810 ü
8. SA260 X 22. SA540 ü 37. SRE2400(Revised)
X
9. SA265 ü 23. SA550 ü 38. SRE2410 ü
10. SA300 X 24. SA560 ü 39. SAE3400 ü
11. SA315 ü 25. SA570 ü 40. SAE3402 X12. SA320 ü 26. SA580 ü 41. SAE3420 ü
13. SA330 ü 27. SA610 X 42. SRS4400 X14. SA402 ü 28. SA620 X 43. SRS4410
(Revised)ü
29. SA700 ü44 SA701 ü
![Page 26: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/26.jpg)
26 MPVijayKumarFCA
StandardwiseDifferences
![Page 27: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/27.jpg)
27 MPVijayKumarFCA
SQC 1 - Material Modifications to ISQC 1
• Definitions in Para 6 modified as per Indian Context.
• In Para 83 period of retention of Engagement Documentation changed to 7 years against5 years in ISQC 1.
• In Para 27, exemption given from mandatory requirement of rotation of engagementpartner in case audit of listed entities is done by sole practitioner as it is not possible toapply the provision in such cases. However, SQC 1 provides for peer review of those firmsin order to mitigate familiarity threat.
SA 200 - Modifications vis-à-vis ISA 200
• Paragraphs in ISA regarding “Considerations Specific to Public Sector Entities” modified.
SA 210 - Material Modifications to ISA 210
• Examples of financial reporting standards changed as per Indian context
• Para A10 of ISA 210 deals with situations where entity operates in a jurisdiction nothaving a standard setting organization or a prescribed financial reporting framework.Since in India, this kind of situation does not exist, para A10 deleted.
• Paragraphs in ISA regarding “Considerations Specific to Public Sector Entities” modified.
![Page 28: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/28.jpg)
28 MPVijayKumarFCA
SA 220 - Modifications vis-à-vis ISA 220• Paragraphs in ISA regarding “Considerations Specific to Public Sector Entities”modified.
SA 230 - Material Modifications to ISA 230• Period of retention of Engagement Documentation changed to 7 years against 5years in ISA 230
• An additional para A25 added from SQC 1, giving provisions regarding Ownershipof Audit Documentation.
SA 240 - Material Modifications to ISA 240• Paragraphs in ISA regarding “Considerations Specific to Public Sector Entities”modified.
SA 250 - Material Modifications to ISA 250• Paragraphs in ISA regarding “Considerations Specific to Public Sector Entities”modified.
![Page 29: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/29.jpg)
29 MPVijayKumarFCA
SA260- MaterialModificationstoISA260• Nil
SA265- MaterialModificationstoISA265• Para A7 of ISA 265 provides examples of indicators of significant deficiencies ininternal control which may include restatement of previously issued financialstatements. Since in India, AS 5 does not permit the restatement. Hence,requirement of restatement of prior period items replaced by requirement todisclose those items in current year’s Statement of Profit & Loss.
• Paragraph in ISA regarding “Considerations Specific to Public Sector Entities”modified.
SA300- ModificationstoISA300• Nil
SA315- MaterialModificationstoISA315• Paragraphs in ISA regarding “Considerations Specific to Public Sector Entities”modified.
![Page 30: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/30.jpg)
30 MPVijayKumarFCA
SA 320 - Material Modifications to ISA 320• Paragraphs in ISA regarding “Considerations Specific to Public Sector Entities”modified.
SA 330 - Material Modifications to ISA 330• Paragraphs in ISA regarding “Considerations Specific to Public Sector Entities”modified.
SA 402 - Material Modifications to ISA 402• In para 13(a) of SA 402, exemption has been given from assessment ofprofessional competence of service auditor where he is ICAI member.
• Paragraph in ISA regarding “Considerations Specific to Public Sector Entities”modified.
SA 450 - Material Modifications to ISA 450• Paragraph in ISA regarding “Considerations Specific to Public Sector Entities”modified.
SA500- MaterialModificationsvis avis ISA500• Nil
![Page 31: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/31.jpg)
31 MPVijayKumarFCA
SA501- Modificationsvis-a-vis ISA501• Nil
SA505- Modificationsvis-a-vis ISA505• Nil
SA510- MaterialModificationsvis-a-vis ISA510• In Para 6(a), requirement of restatement of prior period items replaced byrequirement to disclose those items in current year’s Statement of Profit & Loss toalign it with AS 5.
• In Paragraph 6(c)(i), the requirement of reviewing the predecessor auditor’sworking papers replaced by requirement of perusing the copies of the auditedfinancial statements including the other relevant documents relating to the priorperiod financial statements to align it with CA Act.
• Para A2 of ISA 510 dealt with outsourcing of an audit of a public sector entity bythe statutorily appointed auditor to a private sector audit firm. Since in Indiancontext such situation does not exist, para A2 deleted completely.
![Page 32: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/32.jpg)
32 MPVijayKumarFCA
SA520- Modificationsvis-a-vis ISA520• Nil
SA530- MaterialModificationsvis avis ISA530• Nil
SA540- MaterialModificationsvis avis ISA540• ParagraphinISAregarding“ConsiderationsSpecifictoPublicSectorEntities”modified.
SA550- MaterialModificationsvis avis ISA550• In para A48, point added that a written representation may be obtained byauditor regarding management’s assertion of responsibility that related partytransactions were conducted on terms equivalent to those prevailing in an arm’slength transaction.
• Paragraph in ISA regarding “Considerations Specific to Public Sector Entities”modified.
![Page 33: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/33.jpg)
33 MPVijayKumarFCA
SA560- MaterialModificationstoISA560• ParagraphsinISAregarding“ConsiderationsSpecifictoPublicSectorEntities”modified.
SA570- MaterialModificationstoISA570• InPara3,responsibilitiesofmanagementtomakeanassessmentoftheentity’sabilitytocontinueasagoingconcernhavebeenmademorecountryspecific.
• ParagraphsinISAregarding“ConsiderationsSpecifictoPublicSectorEntities”modified.
SA580- MaterialModificationstoISA580• ParagraphsinISAregarding“ConsiderationsSpecifictoPublicSectorEntities”modified.
RevisedSA610- Modificationsvis-a-vis RevisedISA610• Nil
![Page 34: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/34.jpg)
34 MPVijayKumarFCA
SA 620 - Modifications vis-a-vis ISA 620• Nil
SA 700 - Material Modifications vis-a-vis ISA 700• Examples of financial reporting standards changed as per Indian context• Requirement to mention auditor’s address replaced by Place of Signature• Requirement to mention F.R.N. and M.N. added• Para A36 – ‘Signature of the Auditor’ changed as per Indian context
SA 705 - Material Modifications vis-a-vis ISA 705• Para 17 and A18 of ISA 705 requires auditor to include in basis for modificationpara, a description and quantification of financial effect of the misstatement.Since the said paragraph covers only the effect of the individual quantification ofthe misstatement, the paragraph A18 has been changed also to include the effectof the aggregate quantifications of the misstatements on the financialstatements.
SA 706 - Modifications vis-à-vis ISA 706• Nil
![Page 35: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/35.jpg)
35 MPVijayKumarFCA
SA 710 - Material Modifications vis-a-vis ISA 710• Paragraphs 9 and 12 of ISA 710 deal with restatement of prior period financialstatements. Since AS 5 does not permit restatement, it has been replaced withrequirement to disclose prior period items in current year’s Statement of P& L.Corresponding changes also made at relevant places of SA 710.
• Para 17 of ISA 710 deals with situation wherein the predecessor auditor reissueshis audit report. Since in India, nomenclature, “Reissue” is not used for re-issuance of the audit report, it replaced with the word, “Revised”.Corresponding changes also made at relevant places SA 710.
SA 720 - Material Modifications vis a vis ISA 720• Option given in Para 10 of ISA 720 to withhold the auditor’s report deleted sincethis practice is not in vogue in India
• Para A2 of ISA 720 provides examples of other information including‘employment data’ and ‘names of officers and directors’. Reference to these twospecific examples deleted so that the auditor can focus on more relevantaspects of other information.
![Page 36: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/36.jpg)
36 MPVijayKumarFCA
SA 800 - Modifications vis-a-vis ISA 800• Para A1 of ISA 800 dealing with examples of special purpose frameworks, alsoincludes “a tax basis of accounting for a set of financial statements thataccompany an entity’s tax return”. This example deleted in SA 800.
SA 805 - Modifications vis-a-vis ISA 805• Examples of financial reporting standards changed as per Indian context
SA 810 - Material Modifications vis-a-vis ISA 810• Para 5 of ISA 810 requires auditor to accept an engagement to report on SFSonly when he has been engaged to conduct an audit of the FS from which theSFS are derived. In India, in some cases, the auditor may be required by a law ora regulation governing the entity to report on SFS even for such accountingperiods for which he was not auditor of FS. Accordingly, the word “ordinarily”has been added in Para 5 of SA 810 to cover these situations.
• Requirement to mention auditor’s address replaced by Place of Signature• Requirement to mention F.R.N. and M.N. added
![Page 37: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/37.jpg)
37 MPVijayKumarFCA
RevisedSRE2400- MaterialModificationsvis-à-vis RevisedISRE2400• Nil
SRE2410- MaterialModificationsvis-a-vis ISRE2410• Requirement of mentioning “the location in the country orjurisdiction where the auditor practices” replaced by “place ofsignature” in the auditor’s report.
• Procedures in ISRE 2410 also include the review of thepredecessor auditor’s documentation for preceding annualaudit, and for any prior interim periods in the current year thathave been reviewed by the predecessor auditor. In SRE 2410,these replaced by requirement of perusing the copies of theaudited financial statements including the other relevantdocuments relating to the prior period financial statements toalign with CA Act.
![Page 38: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/38.jpg)
38 MPVijayKumarFCA
SAE3400- Modificationsvis-à-vis ISAE3400(a) SAE precludes the auditor from expressing positive assurance regarding the assumptions as it
may tantamount to vouching for the accuracy of the forecast/projection/hypotheticalassumptions. Whereas, the ISAE 3400 permits the auditor to express positive assurance when inhis judgment an appropriate level of satisfaction has been obtained.
(b) The sub points in paragraph 17 (corresponding to paragraph 17 of the ISAE 3400) have beenrearranged. Sub point (e) has been elucidated for the sake of better understanding of thereaders. The sub points (f) and (g) have been added in the SAE as additional factors to beconsidered by the auditor.
(c) In paragraph 20 of the SAE, the phrase “although evidence supporting hypothetical assumptionsneed not be obtained” has been deleted since it is felt that such a phrase is inconsistent with thenecessity for the auditor to obtain evidence to support his conclusions.
(d) In paragraph 26 (corresponding to paragraph 26 of the ISAE 3400), the term “professionalstandards” has been changed to “professional pronouncements” since pronouncements wouldinclude standards as well as other relevant documents, such as Guidance Notes,announcement(s), issued by the ICAI.
(e) In line with requirement of SA 700, “The Auditor’s Report on Financial Statements” this SAErequires the auditor to include a scope section in the examination report to explain the natureand extent of the auditor’s work. ISAE 3400 does not contain an equivalent requirement.
(f) SAE specifically provides for the documentation required to be done by the auditor in regard toany engagement of examination of prospective financial information. However, ISAE 3400 doesnot contain such explicit provision.
![Page 39: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/39.jpg)
39 MPVijayKumarFCA
SAE 3402 - Modifications vis-à-vis ISAE 3402• Nil
SAE 3420 - Modifications vis-à-vis ISAE 3420• Option given in Para 32 of ISAE 3420 to withhold the report deleted sincethis practice is not in vogue in India
SRS 4400 - Modifications vis-à-vis ISRS 4400• NIL
Revised SRS 4410 - Material Modifications vis-à-vis Revised ISRS 4410• Following bullet point added in para 24(e):
• Design, implementation and maintenance of such internal control as managementdetermines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.
![Page 40: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/40.jpg)
40 MPVijayKumarFCA
SA200OverallObjectivesoftheIndependentAuditor&ConductofanAuditinAccordancewithSAs
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 41: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/41.jpg)
41 MPVijayKumarFCA
Overview• Introduction
• Scope• Anauditoffinancialstatements(FS)• Effectivedate
• OverallObjectivesoftheAuditor• Definitions• Requirements&Application
• EthicalrequirementsRelatingtoAuditofFS• Professionalskepticism• Professionaljudgment• SufficientandAppropriateAuditEvidence(SAAE)• ConductofanAuditinAccordancewithSAs
![Page 42: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/42.jpg)
42 MPVijayKumarFCA
Scope• Establishesindependentauditor’soverallresponsibilitieswhenconductinganauditofFS
• Overallobjectiveofauditor• Nature&scopeofauditdesignedtomeetthoseobjectives
• ExplainsScope,authority&structureofSAs• SetsoutGeneralresponsibilitiesoftheauditor• ObligationtocomplywithSAs
![Page 43: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/43.jpg)
43 MPVijayKumarFCA
AnAuditofFinancialStatements• AuditenhancesdegreeofconfidenceinFS• ExpressionofopiniononpreparationofFSinaccordancewithapplicableFRF
• Doesnotensure:• futureviabilityofentity• efficiency&effectivenessofmanagement
• SAsdonot• imposeresponsibilitiesonmanagement/TCWG• overrideL&R
![Page 44: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/44.jpg)
44 MPVijayKumarFCA
ReasonableAssurance• SAsrequireauditortoobtainreasonableassurance.
• ObtainSAAEtoreduceauditrisktoanacceptablylowlevel.
• Absoluteassurancenot possiblebecauseofinherentlimitationsofaudit
• Materialitytobeappliedatplanningaswellasperformance
![Page 45: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/45.jpg)
45 MPVijayKumarFCA
OverallObjectiveoftheAuditor
• ObtainreasonableassurancewhetherFSasawholearefreefrommaterialmisstatementwhetherduetofraud/error
• ReportonFSandcommunicateasrequiredbySAs
![Page 46: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/46.jpg)
46 MPVijayKumarFCA
ConductofAuditinAccordancewithSAs
• ComplywithallSAsrelevanttoaudit• SAisrelevantwhen
• thatSAisineffect&• circumstancesaddressedbySAexist
• HaveanunderstandingoftheentiretextofSA
• Do not represent compliance with SAs inaudit report unless auditor complies withSA 200 & other SAs relevant to audit
![Page 47: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/47.jpg)
47 MPVijayKumarFCA
SA210AgreeingtheTermsofAuditEngagements
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 48: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/48.jpg)
48 MPVijayKumarFCA
OverviewofSA210• Introduction
• Scope• EffectiveDate
• Objective• Definitions• Requirements
• PreconditionsforanAudit• AgreementonAuditEngagementTerms• RecurringAudits• Acceptance of a Change in the Terms of the Audit Engagement• Additional considerations in Engagement Acceptance
• Application and Other Explanatory Material on these aspects• Appendices
![Page 49: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/49.jpg)
49 MPVijayKumarFCA
Scope
• DealswithAuditor’sresponsibilitiesinagreeingthe termsofauditengagement(ToAE) withmgt &TCWG
• Includesestablishingthatpreconditionsforauditarepresent.
![Page 50: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/50.jpg)
50 MPVijayKumarFCA
Auditor’sObjectiveAccept/ContinueAuditEngagementonlywhen
Basisonwhichengagementistobeperformedhasbeenagreed
Establish Confirm
Existenceofpreconditionsforaudit
CommonunderstandingofToAEbetweenauditor,
mgt&TCWG
AND
![Page 51: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/51.jpg)
51 MPVijayKumarFCA
PreconditionsforAudit
Determine Obtain
AcceptabilityofFRF Mgtagreementthatitunderstandsitsresponsibility
PreparationofFSinaccordancewithapplicableFRF
InternalControlsnecessarytoprepareFSfreeofmaterialmisstatement
Allrelevantinfo&unrestrictedaccesstoauditor
![Page 52: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/52.jpg)
52 MPVijayKumarFCA
AgreementonAuditEngagementTerms
• AgreetheToAE withMGT/TCWG.
• AgreedToAE shallinclude:• Objective&scopeofauditofFS.• Auditor’sresponsibilities.• Management’sresponsibilities.• IdentificationofapplicableFRF.• Expectedform&contentofreport.• A statement that these may undergo change due to circumstances.
• If L & R prescribe ToAE in details:• Written Engagement Letter may not be necessary for above.
![Page 53: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/53.jpg)
53 MPVijayKumarFCA
AcceptanceofChangeinTermsDonotagreetochangeifnoreasonablejustificationforit.
• IfToAE arechanged:• AuditorandMGTshallagreeonnewterms,and• recordnewtermsinengagementletterorothersuitableformofwrittenagreement.
• IfunabletoagreewithchangedToAE ANDnotpermittedbyMGTtocontinue:
• WithdrawifpermittedunderL&R;and• DetermineneedtoreporttootherpartiessuchasTCWG/regulators/owners
![Page 54: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/54.jpg)
54 MPVijayKumarFCA
SA220QualityControlFor
AnAuditofFinancialStatements
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 55: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/55.jpg)
55 MPVijayKumarFCA
OverviewofSA220• Introduction
• Scope• Effectivedate
• Objective• Definitions• Requirements&Application
• Leadershipresponsibilitiesforqualityonaudits• Relevantethicalrequirements• Acceptance&continuanceofclientrelationship&auditengagements
• Assignmentofengagementteams• Engagementperformance• Monitoring• Documentation
![Page 56: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/56.jpg)
56 MPVijayKumarFCA
Scope
• Dealswith:• SpecificresponsibilitiesoftheauditorregardingQualityControl(QC)proceduresforanauditofFS
• ResponsibilitiesofengagementQCreviewer
• Shouldbereadinconjunctionwithrelevantethicalrequirements
• PresumesthatfirmissubjecttoSQC1
![Page 57: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/57.jpg)
57 MPVijayKumarFCA
QCSystem&RoleofEngagementTeam
• ResponsibilityofAuditFirm• ImplementQCsystemthatprovidesreasonableassurance:
• Firm&itspersonnelcomplywithprofessionalstandards®ulatory&legalrequirements
• Reportsissuedbyfirm/engagementpartnersareappropriateinthecircumstances
• ResponsibilityofEngagementTeam• ImplementapplicableQCprocedures
• Providefirmwithrelevantinfowrt QCsystemrelatingtoIndependence
![Page 58: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/58.jpg)
58 MPVijayKumarFCA
RelyonFirmQC
EngagementTeamentitledtorelyonfirm’sQCunlessinformationprovidedbyfirmorotherpartiessuggestsotherwise:
![Page 59: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/59.jpg)
59 MPVijayKumarFCA
Auditor’sObjectiveImplementQCprocedures
AtEngagementLevel
ThatprovideReasonableAssurance
Auditcomplieswithprofessionalstandards&legalrequirements
Auditreportissuedisappropriateinthecircumstances&
![Page 60: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/60.jpg)
60 MPVijayKumarFCA
SA230AuditDocumentation
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2009
![Page 61: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/61.jpg)
61 MPVijayKumarFCA
OverviewofSA230• Introduction
• Scope• EffectiveDate
• Objective
• Definitions
• Requirements• TimelyPreparationofAuditDocumentation• DocumentationoftheAuditProceduresPerformedandAuditEvidenceObtained
• AssemblyoftheFinalAuditFile
• ApplicationandOtherExplanatoryMaterial
![Page 62: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/62.jpg)
62 MPVijayKumarFCA
Scope
Scope
Tobeadaptedtoauditsofotherhistoricalfininfo
DealswithAuditor’sresponsibilitytoprepareauditdoxforanauditofFS
SpecificdoxrequirementsofotherSAsdonotlimitapplicationofthisSA
L&Rmayestablishadditionalrequirements
![Page 63: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/63.jpg)
63 MPVijayKumarFCA
Objective
Sufficient&
Appropriaterecordofbasisforauditor’sreport
Evidencethatauditwasplannedandperformed
inaccordancewithSAs&L&R
Preparedocumentationthatprovides
![Page 64: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/64.jpg)
64 MPVijayKumarFCA
AssemblyofFinalAuditFile• Timely basis after date of audit report
• Set policy in terms of SQC 1• Within 60 days (SQC 1)
• Changes permitted:• Deleting/ discarding superseded dox.• Sorting, collating, cross referencing working papers• Signing off on completion checklists re file assembly• Documentation of discussion with engagement team beforedate of audit report
![Page 65: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/65.jpg)
65 MPVijayKumarFCA
• Nodeletion/discardingpermittedafterfinalassemblyexceptforexampletoclarifyexistingdoxarisingfrominternal/externalinspections
• Documentspecificreasonsformakingthem
• When&bywhommade/reviewed
• Retentionperiod–7years fromdateofauditreport
![Page 66: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/66.jpg)
66 MPVijayKumarFCA
OwnershipofDocumentation• UnlessotherwisespecifiedbyLorR,auditdocumentationisthepropertyoftheAuditor.
• Mayathisdiscretion,makeportionsof,orextractsfrom,auditdocumentationavailabletoclients,provided:
• suchdisclosuredoesnotunderminethevalidityoftheworkperformed,or,
• inthecaseofassuranceengagements,doesnotunderminetheindependenceofauditor/hispersonnel.
![Page 67: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/67.jpg)
67 MPVijayKumarFCA
SA240TheAuditor’sResponsibilityRelatingtoFraud
inanAuditofFinancialStatements
Effectiveforauditsoffinancialstatementsforperiodsbeginningonorafter1stApril,2009
![Page 68: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/68.jpg)
68 MPVijayKumarFCA
OverviewofSA240• Introduction
• Scope• EffectiveDate
• Objectives• Definitions• Requirements
• Professionalskepticism• DiscussionamongtheEngagementTeam• Riskassessmentproceduresandrelatedactivities• IdentificationandAssessmentofRisksofmaterialmisstatementduetofraud• ResponsestotheAssessedRisksofmaterialmisstatementduetofraud• Evaluationofauditevidence• Auditorunabletocontinuetheengagement• ManagementRepresentations• Communicationwiththosechargedwithgovernanceandmanagement• CommunicationstoRegulatoryandEnforcementauthorities• Documentation
• ApplicationandOtherExplanatoryMaterialontheseaspects• Appendices
![Page 69: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/69.jpg)
69 MPVijayKumarFCA
Scope
• Dealswithauditor’sresponsibilitiesrelatingtofraudinauditoffinancialstatements
• ExpandsonhowSA315andSA330,aretobeappliedinrelationtorisksofmaterialmisstatementduetofraud.
![Page 70: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/70.jpg)
70 MPVijayKumarFCA
ResponsibilityforFraudPrevention&Detection
1. Thosechargedwithgovernance• Oversightofmanagementpolicies• Considerpotentialformanagementoverrideofcontrols• Considerpotentialformanagement’sinappropriateinfluenceonfinancialreporting
2. Management• Establishproperpolicies• Emphasisonethicsandhonesty
![Page 71: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/71.jpg)
71 MPVijayKumarFCA
ResponsibilityofAuditor
• Obtainreasonableassurancethatfinancialstatementsarefreeofmaterialmisstatements.
• Subjectto:• Inherentlimitationsofaudit
• Fraud– deliberatelyconcealed,sodifficulttodetect
• ButexerciseProfessionalSkepticism.
![Page 72: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/72.jpg)
72 MPVijayKumarFCA
Auditor’sObjectives
1. Identifyandassessriskofmaterialmisstatementsduetofraud
2. ObtainSAAEaboutassessedrisks
3. Respondappropriatelytoidentified/suspectedfraud
![Page 73: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/73.jpg)
73 MPVijayKumarFCA
ProfessionalSkepticism• Requiresongoingquestioningof:
• Whetherinfo.&auditevidenceobtainedsuggestpossibilityofmaterialmisstatementduetofraud.
• Donottakeclientintegrityandhonestyforgranted
• Documentsmaybeacceptedasgenuineifnocontraryindications,butwhenindoubt,may:
• Confirmdirectlywith3rdparty
• Engageexperttoassessauthenticity
• Investigate-responsetoinquiriesisinconsistent
![Page 74: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/74.jpg)
74 MPVijayKumarFCA
SA250ConsiderationofLawsandRegulationsinanAuditofFinancialStatements
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2009
![Page 75: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/75.jpg)
75 MPVijayKumarFCA
OverviewofSA250• Introduction
• Scope• Effectivedate
• Objectives• Definition• Requirements
• TheAuditor’sconsiderationofcompliancewithLawandRegulation(L&R)
• Auditprocedureswhennon-complianceisidentifiedorsuspected• Reportingofidentifiedorsuspectednoncompliance• Documentation
• ApplicationandOtherExplanatoryMaterial
![Page 76: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/76.jpg)
76 MPVijayKumarFCA
Scope• Dealswithauditor’sresponsibility:
• toconsiderL&RwhenperformingauditofFS.
• Doesnotapplyto:• assuranceengagementswheretesting&reportingoncompliancewithL&Risthespecificobjective.
![Page 77: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/77.jpg)
77 MPVijayKumarFCA
WhatisNonCompliance?
• Actsofomissionorcommission
• eitherintentionalorunintentional• whicharecontrarytotheprevailingLorR
• Doesnotincludepersonalmisconduct(unrelatedtobusinessactivitiesofentity)byTCWG,Mgt.,employeesoftheentity.
![Page 78: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/78.jpg)
78 MPVijayKumarFCA
MGT.ResponsibilityforCompliancewithL&R• MGTresponsible
• UnderoversightofTCWG
• PoliciesandProcedures:• Monitorlegalrequirements• Ensureeffectivenessofoperatingprocedures• Instituting/OperatingappropriatesystemsofInternalcontrols• Developing/publicising/following/monitoringofCodeofconduct• Employeetraining• Engagelegaladvisors• MaintainregisterofsignificantL&R&recordofcomplaints
![Page 79: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/79.jpg)
79 MPVijayKumarFCA
Auditor’sResponsibility• Auditor responsible for obtaining reasonable assurance that FS takenas a whole are free from Material Misstatement, whether by fraudor error
• SA assists auditor in identifying material misstatements in FS due tonon-compliance
• Auditor is not, responsible for preventing non compliance andcannot be expected to detect non- compliance with all L & R
• Factors increasing the risk of not detecting the non- compliance:• Inherent limitations of audit• Some L&R relate to operations, no impact on FS and are not captured by entity’s
information system• Deliberate concealment of non compliance, e.g., collusion, forgery• Non compliance - Ultimate determination is a matter of court of law.`
![Page 80: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/80.jpg)
80 MPVijayKumarFCA
Responsibilityw.r.t.differenttypesofL&R
TypesofL&R
ObtainSAAEregcompliance
Undertakespecifiedprocedurestohelp
identifynon-compliancethatmayimpactFS
Exerciseprofessionalskepticism
A BDirecteffectonmaterialamounts&disclosuresinFS
Fundamentalimpactonoperations&GoingConcern
![Page 81: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/81.jpg)
81 MPVijayKumarFCA
SA260CommunicationwithThoseChargedwith
Governance
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2009
![Page 82: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/82.jpg)
82 MPVijayKumarFCA
OverviewofSA260• Introduction
• Scope• Effective Date
• Objectives• Definitions• Requirements
• Those Charged with Governance• Matters to be Communicated• The Communication Process• Documentation
• Application and Other Explanatory Material
![Page 83: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/83.jpg)
83 MPVijayKumarFCA
Deals with Auditor’s responsibility to
communicate with TCWG in an audit of FS
Provides a framework
for auditor’s Communication
with TCWG,and identifies some specific
matters to be communicated
may also be applicable to audits of other
historical financial information
This SA does not preclude the auditor fromcommunicating any other matters to TCWG
Scope
![Page 84: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/84.jpg)
84 MPVijayKumarFCA
CommunicateclearlywithTCWGresponsibilitiesofauditorandplannedscopeandtimingofaudit
ProvideTCWGwithtimelyobservations–significantandrelevantinoverseeingfinalreportingprocess
ObtainfromTCWGinformationrelevanttoaudit
Promoteeffectivetwo-waycommunicationbetweenauditorandTCWG
Auditor’s Objectives
![Page 85: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/85.jpg)
85 MPVijayKumarFCA
MatterstobeCommunicated
Auditor’sresp inrelationtoFSaudit
PlannedScopeandtimingof
audit
Significantfindings
fromtheaudit
![Page 86: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/86.jpg)
86 MPVijayKumarFCA
Documentation• Matterscommunicatedorally:
• documentmatters;and
• alsowhenandtowhommatterwerecommunicated.
• MattersCommunicatedinwriting:• retainacopyofthecommunication.
![Page 87: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/87.jpg)
87 MPVijayKumarFCA
SA265CommunicatingDeficienciesinInternalControltoThoseChargedwithGovernance&Management
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 88: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/88.jpg)
88 MPVijayKumarFCA
OverviewofSA265• Introduction
• Scope• EffectiveDate
• Objective• Definitions• Requirements• Application&OtherExplanatoryMaterial
• Determination of whether Deficiencies in Internal Controlhave been identified
• Significant Deficiencies in Internal Control• Communication of Deficiencies in Internal Control
![Page 89: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/89.jpg)
89 MPVijayKumarFCA
Scope• Dealswithauditor’sresponsibilityto:
• Communicate appropriately with TCWG/ MGT Deficiencies in ICIdentified by auditor in audit
• Doesnotimposeadditionalresponsibilitywrt:• ObtaininganunderstandingofInternalcontrolsand• Designing & performing Tests of Controls over and above thatrequired by SA 315 & SA 330
• Does not override SA 260.
• Specifies which deficiencies need to be communicated toTCWG/Mgt.
![Page 90: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/90.jpg)
90 MPVijayKumarFCA
Auditor’sObjective
• CommunicateappropriatelytoTCWG&Mgt:
• DeficienciesinICidentifiedduringaudit,and
• Thatinhisprofessionaljudgmentaresufficientlyimportanttomerittheirattentions.
![Page 91: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/91.jpg)
91 MPVijayKumarFCA
Definitions
Deficiency in IC
Control designed/ implemented/ operated in a way
Fails to prevent/ detect & correct misstatements in FS on timely basis
Control necessary to prevent/ detect & correct misstatement in FS on timely basis
Is missing
OR
![Page 92: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/92.jpg)
92 MPVijayKumarFCA
MainRequirements• Determinewhetherdeficiency(s)inICidentified.
• IfdeficienciesinICidentified,determine:• whetherindividually/incombinationtheyconstitutesignificantdeficiencies.
• communicateinwritingsignificantdeficienciesinICidentifiedtoTCWGonatimelybasis.
• communicatetoMGTatappropriatelevelonatimelybasis:
• Inwriting,significantdeficienciesinIC.• OtherdeficienciesinIC.
![Page 93: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/93.jpg)
93 MPVijayKumarFCA
SA299ResponsibilityofJointAuditors
EffectiveforallauditsrelatingtoaccountingperiodsbeginningonorafterApril1,1996
![Page 94: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/94.jpg)
94 MPVijayKumarFCA
ScopeoDealswithauditor’sprofessionalresponsibilitiesasjointauditors.
oDoesnotcoversituationscoveredunderSA600.
![Page 95: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/95.jpg)
95 MPVijayKumarFCA
DivisionofWork• Bymutualdiscussion:
• Usuallyintermsofauditofidentifiableunits/specifiedareas.
• Wheresuchdivisionnotpossible– intermsofassets/liabilities/income/expenditure,etc.
• Criticalareascoveredbyallauditors.
• Documentthedivision&communicatetoclient.
![Page 96: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/96.jpg)
96 MPVijayKumarFCA
RelationshipamongJointAuditors• EachJointAuditorresponsibleonlyforworkallocated,whetherornotseparatereportthereforismade.
• EachJointAuditorjointlyandseverallyresponsiblefor:• undividedwork.
• nature,timing,extentofauditprocedures.
• compliancewithdisclosurerequirements.
• auditreportcompliancewithstatuterequirements.
• matterbroughttonoticeofallbyanyoneofthem,andonwhichthereisanagreement.
![Page 97: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/97.jpg)
97 MPVijayKumarFCA
Reporting• Normally,jointauditorsareabletoarriveatanagreedreport.
• Ifdisagreement,then:• eachoneofthemshouldexpresshisopinionthroughaseparatereport.
• ajointauditorisnot boundbymajorityviewregardingmatterstobecoveredinthereportandshouldexpresshisopinioninaseparatereport.
![Page 98: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/98.jpg)
98 MPVijayKumarFCA
SA300PlanninganAuditofFinancialStatements
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2008
![Page 99: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/99.jpg)
99 MPVijayKumarFCA
OverviewofSA300• Introduction
• Scope• Effective Date
• Objective• Requirements
• Involvement of Key Engagement Team Member• Preliminary Engagement Activities• Planning Activities• Documentation• Additional Considerations in Initial Audit
Engagements• ApplicationandOtherExplanatoryMaterialontheseAspects
• Appendix
![Page 100: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/100.jpg)
100 MPVijayKumarFCA
Scope&ObjectiveSCOPE• DealswithAuditor’sresponsibilitytoplanauditofFS.• Itisframedinthecontextofrecurringaudits.• Additionalconsiderationsidentifiedforinitialauditengagements.
Auditor’sObjectivePlananauditsothatengagementisperformedinaneffectivemanner.
![Page 101: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/101.jpg)
101 MPVijayKumarFCA
Requirements1. InvolveKeyEngagementTeamMembersinplanning
2. PreliminaryEngagementActivities• PerformproceduresrequiredbySA220reg.Clientacceptance,etc.
• Evaluatecompliancewithethicalrequirementsincludingindependence.
• EstablishunderstandingoftermsofengagementasperSA210
3. PlanningActivities• Establishoverallauditstrategy
• Developanauditplan
• Updateandchangeoverallauditstrategyandauditplanasnecessary
![Page 102: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/102.jpg)
102 MPVijayKumarFCA
Documentation• Overallauditstrategy:
• Necessary for proper planning & communicating significant matters to audit team.
• Auditplan:• Record of proper planning & review of audit
procedures for approval before use.
• Significantchangestooverallauditstrategy/auditplanandreasonsforchanges:
• Reflects appropriate response to these changes.
![Page 103: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/103.jpg)
103 MPVijayKumarFCA
AdditionalConsiderationsinInitialAuditEngagements
• Before starting initial audit engagement:• Perform procedures required under revised SA 220 – client
acceptance, etc.• Communicating with predecessor auditor.
• Additional matters to consider in Audit Strategy andAudit Plan:
• Any major issues discussed with management.• Audit procedures necessary regarding opening balances.• Other procedures required by firm’s QC system.
![Page 104: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/104.jpg)
104 MPVijayKumarFCA
SA315IdentifyingandAssessingtheRiskofMaterial
MisstatementsthroughUnderstandingtheEntity&ItsEnvironment
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2008
![Page 105: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/105.jpg)
105 MPVijayKumarFCA
OverviewofSA315• Introduction
• Scope• Effective Date
• Objective• Definitions• Requirements
• Risk Assessment Procedures and Related Activities• The Required Understanding of the Entity and Its Environment, includingInternal Control
• Identifying and Assessing the Risks of Material Misstatement• Material Weakness in Internal Control• Documentation
• Application and other Explanatory Material on these Aspects• Appendices
![Page 106: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/106.jpg)
106 MPVijayKumarFCA
Scope• Auditor’sresponsibilitytoidentify&assessrisksofmaterialmisstatementsinfinancialstatements.
• Throughunderstanding:• theentity.
• itsenvironment.
• itsinternalcontrols.
![Page 107: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/107.jpg)
107 MPVijayKumarFCA
Objective– oftheAuditor
Identify&assessriskofmaterialmisstatements
Understandtheentity
Financialstatement&Assertionlevel
Design&implementresponsestoassessedrisk
Entity’senvironment
Entity’sinternalcontrols
Fraud Error
Reducerisktoacceptablylowlevel
![Page 108: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/108.jpg)
108 MPVijayKumarFCA
RiskAssessmentProcedures(RAP)– Need
RAPEstablishframeworkofreferencefor:• AssessingriskofmaterialmisstatementsinFS.• Establishingandassessingcontinuedrelevanceofestablishedmaterialitylevels.
• Evaluatingappropriatenessofaccountingpolicies-selection&application,disclosures.
• Identifyingareasneedingspecialauditconsideration.• Developingexpectationswrt AnalyticalProcedures.• Respondingtoassessedriskofmaterialmisstatements.• Evaluatingsufficiency&appropriatenessofauditevidence.
However,RAPbythemselves,donotprovideSAAEonwhichtobasetheauditopinion
![Page 109: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/109.jpg)
109 MPVijayKumarFCA
RAPs– Types
Information from discussion among engagement team
Information from previous engagements & other audits
– significant changes that have occurred
Informationfromclientacceptanceorcontinuanceprocess
Informationfromotherengagementsdonefortheentity
![Page 110: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/110.jpg)
110 MPVijayKumarFCA
5ComponentsofInternalControl1. ControlEnvironment
2. Entity’sRiskAssessmentProcess
3. InformationSystemandCommunication
4. ControlActivitiesrelevanttoAudit
5. MonitoringofControls
![Page 111: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/111.jpg)
111 MPVijayKumarFCA
SA320MaterialityinPlanning&PerforminganAudit
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 112: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/112.jpg)
112 MPVijayKumarFCA
OverviewofSA320• Introduction
• Scope• MaterialityintheContextofanAudit• EffectiveDate
• Objective• Definition• Requirements
• DeterminingMaterialityandPerformanceMaterialitywhenPlanningtheAudit
• RevisionastheAuditProgresses• Documentation
• ApplicationandOtherExplanatoryMaterialontheseaspects
![Page 113: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/113.jpg)
113 MPVijayKumarFCA
SCOPE
ThisSADealswith
SA450Explains
Auditor’sresponsibility
ToApplytheconceptofmateriality
Inplanning&performingauditofFS
Applicationofmateriality
Identifiedmisstatements
onaudit
Evaluatingeffectof
Uncorrectedmisstatements
onFS
![Page 114: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/114.jpg)
114 MPVijayKumarFCA
MaterialityintheContextofanAudit
• FinancialReportingFrameworksoftendiscuss“materiality”incontextofpreparation&presentationofFSe.g.
• Misstatementsarematerialifinaggregate/individuallymayinfluenceeconomicdecisionsofusers.
• Auditor’sdeterminationofmaterialityisamatterofprofessionaljudgement
![Page 115: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/115.jpg)
115 MPVijayKumarFCA
Auditor’sObjective
• Conceptofmaterialityisappliedbytheauditorin:
• planningandperformingaudit,• evaluatingeffectofidentifiedmisstatementsonauditandofuncorrectedmisstatements,ifany,onFSand
• formingtheopinionintheauditor’sreport.
![Page 116: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/116.jpg)
116 MPVijayKumarFCA
DocumentationDocumentationRequirements
• MaterialityfortheFSasawhole.
• Ifapplicable,thematerialitylevelorlevelsforparticularclassesoftransactions,accountbalancesordisclosures
• Performancemateriality.
• Anyrevisionofaboveduringaudit
![Page 117: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/117.jpg)
117 MPVijayKumarFCA
SA330TheAuditor’sResponsestoAssessedRisks
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2008
![Page 118: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/118.jpg)
118 MPVijayKumarFCA
OverviewofSA330• Introduction
• Scope• Effective Date
• Objective• Definitions• Requirements
• Overall responses• Audit Procedures Responsive to the Assessed Risk of
material Misstatement at the Assertion level• Adequacy of Presentation & disclosures• Evaluating the sufficiency & appropriateness of audit
evidence• Documentation
• Application&OtherExplanatoryMaterialontheseAspects
![Page 119: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/119.jpg)
119 MPVijayKumarFCA
Scope&ObjectiveSCOPE• DealswithAuditor’sresponsibilityto:
• design & implement responses to risk of material misstatements identified & assessed in accordance with SA 315.
AUDITOR’SOBJECTIVE• ObtainSAAEabouttheassessedriskofmaterialmisstatement:
• through designing & implementing appropriate responses to risks.
![Page 120: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/120.jpg)
120 MPVijayKumarFCA
Definitions• SubstantiveProcedures
• AuditProceduresdesignedtodetectmaterialmisstatementsatassertionlevel.Theseinclude:
• Testsofdetails– classesoftransactions/accountbalances/disclosures
• Substantive/analyticalprocedures
• TestsofControls• AuditProcedureforevaluatingoperatingeffectivenessofcontrolsinpreventing/detecting&correctingmaterialmisstatementatassertionlevel
![Page 121: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/121.jpg)
121 MPVijayKumarFCA
OverallResponses• Auditorrequiredtodesign&implementoverallresponses toaddressriskofmaterialmisstatementatFinancialStatementlevel.
• Theseinclude:• Emphasizingonprofessionalskepticism• Assigningmoreexperienced/skilledstafforexperts• Moresupervision• Incorporateunpredictabilityinauditprocedures• Generalchangestonature,timing&extentofauditprocedures
![Page 122: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/122.jpg)
122 MPVijayKumarFCA
SA402AuditConsiderationsRelatingtoanEntityUsinga
ServiceOrganisation
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 123: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/123.jpg)
123 MPVijayKumarFCA
OverviewofSA402• Introduction
• Scope• Effectivedate
• Objectives
• Definitions
• Requirements• Obtaining an Understanding of the Services provided by a ServiceOrganisation, including Internal Control
• Responding to the Assessed Risks of Material Misstatement• Type 1 and Type 2 Reports that Exclude the Services of a Sub-serviceOrganisation
• Fraud, Non-Compliance with Laws and Regulations and UncorrectedMisstatements in Relation to Activities at the Service Organisation
• Reporting by the User Auditor
• Application & Other Explanatory Material on these aspects
![Page 124: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/124.jpg)
124 MPVijayKumarFCA
Scope• DealswithAuditor’sResponsibilitytoobtainSAAE
• whenclientusesservicesofoneormoreServiceOrganizations(SO).
• ItexpandsonhowtoapplySA315&SA330insuchsituations
• Natureandextentofworktobeperformedbyuserauditordependson:
• nature&significanceofthoseservicestouserentityand• relevanceofthoseservicestotheaudit.
![Page 125: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/125.jpg)
125 MPVijayKumarFCA
Auditor’sObjectivesObtain Design & Perform
Understanding of services of SO
Nature &significance
Effect on Internal controls relevant to audit
Risk Responsive Audit procedures
Sufficient to identify & assess
Risk of Material
Misstatements
![Page 126: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/126.jpg)
126 MPVijayKumarFCA
ReportingbyUserAuditor• Modifiedopinionif:
• UnabletoobtainSAAEregardingservicesofSOrelevanttoauditofuserentity’sFS
• DonotrefertoworkofserviceauditorinunmodifiedauditorreportunlessrequiredbyL&R
![Page 127: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/127.jpg)
127 MPVijayKumarFCA
SA450EvaluationofMisstatementsIdentified
DuringtheAudit
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 128: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/128.jpg)
128 MPVijayKumarFCA
OverviewofSA450• Introduction
• Scope• EffectiveDate
• Objective• Definitions• Requirements
• AccumulationofIdentifiedMisstatements• ConsiderationofIdentifiedMisstatementsastheAuditProgresses• Communication&CorrectionofMisstatements• EvaluatingtheEffectofUncorrectedMisstatements• WrittenRepresentation• Documentation
• ApplicationandOtherExplanatoryMaterialontheseaspects
![Page 129: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/129.jpg)
129 MPVijayKumarFCA
Scope• Dealswithauditor’sresponsibilitytoevaluateeffectof:
• Identifiedmisstatementsonauditand
• Uncorrectedmisstatement(ifany)onFS
• Auditor’sopinionasperSA700influencedby:• evaluationofimpactofuncorrectedmisstatementsonFSasperSA320.
![Page 130: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/130.jpg)
130 MPVijayKumarFCA
Auditor’sObjective
Evaluate:
• Effectofidentifiedmisstatementsonaudit AND
• Effectofuncorrectedmisstatements(ifany)onFS
![Page 131: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/131.jpg)
131 MPVijayKumarFCA
DefinitionsMisstatementDifferencebetweenamount,classification,presentation,disclosuresofreportedFSitemvis-à-vis:
• requirementsofFRF• includesadjustmentsasarenecessary,inauditor’sjudgment,toprovideTrue&Fairview
• canarisefromfraud/error
UncorrectedMisstatements• Misstatementsaccumulatedbyauditorduringtheauditand• thathavenotbeencorrected.
![Page 132: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/132.jpg)
132 MPVijayKumarFCA
MainRequirements• AccumulationofIdentifiedMisstatements
• auditorneedtoaccumulatemisstatementsidentifiedduringtheaudit,otherthanthosethatareclearlytrivial
• CommunicationandCorrectionofMisstatements• auditorneedtocommunicateonatimelybasisallmisstatementsaccumulatedduringauditwithappropriatelevelofmgt.unlessprohibitedbylaworregulation.
• auditorshallrequestmgt.tocorrectthosemisstatements
• EvaluatingeffectofUncorrectedMisstatements• auditorshalldeterminewhetheruncorrectedmisstatementsarematerial,individuallyorinaggregate.
![Page 133: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/133.jpg)
133 MPVijayKumarFCA
SA500AuditEvidence
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2009
![Page 134: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/134.jpg)
134 MPVijayKumarFCA
OverviewofSA500• Introduction
• Scope• Effectivedate
• Objective• Definitions• Requirements
• Sufficient Appropriate Audit Evidence (SAAE)• Information to be used as audit evidence• Selecting items for testing to obtain audit evidence• Inconsistency/doubts over reliability of audit evidence
• Application and Other explanatory Material on theseAspects
![Page 135: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/135.jpg)
135 MPVijayKumarFCA
Scope
Explainswhatis Dealswith
AuditEvidencewrt auditofFS
Auditor’sResponsibility
ToDesign&PerformauditprocedurestoobtainSAAE
Drawreasonableconclusionstobaseauditopinion
SA500isapplicabletoallAuditEvidence
![Page 136: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/136.jpg)
136 MPVijayKumarFCA
ObjectiveoftheAuditor
• Design&performauditprocedures:• insuchawaythat• enablehimtoobtainSAAE
• tobeabletodrawreasonableconclusions• onwhichtobasetheauditor’sopinion
![Page 137: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/137.jpg)
137 MPVijayKumarFCA
ProceduresforObtainingAuditEvidenceInspection
Observation
Confirmation
Re-calculationRe-performance
AnalyticalProcedures
Inquiry
Inquiry alone, ordinarily, does not provide SAAE
![Page 138: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/138.jpg)
138 MPVijayKumarFCA
Inconsistency/Doubts
• Ifauditevidenceobtainedfromonesourceisinconsistentwiththatobtainedfromanother;
OR
• auditorhasdoubtsoverreliabilityofinformationtobeusedasauditevidence
Then• auditorshalldeterminewhatmodified/additionalauditproceduresarenecessarytoresolvethematter
AND
• shallconsidereffectofthematter,ifany,onotheraspectsoftheaudit.
![Page 139: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/139.jpg)
139 MPVijayKumarFCA
SA501AuditEvidence– SpecificConsiderations
forSelectedItems
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 140: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/140.jpg)
140 MPVijayKumarFCA
OverviewofSA501• Introduction
• ScopeofthisSA
• EffectiveDate
• Objective
• Requirements&Application• Inventory
• Litigation&Claims
• SegmentInformation
![Page 141: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/141.jpg)
141 MPVijayKumarFCA
Scope
• DealswithspecificconsiderationsbyauditorinobtainingSAAEw.r.t.certainaspectsof:
• Inventory• Litigation&claims• Segmentinformation
![Page 142: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/142.jpg)
142 MPVijayKumarFCA
Auditor’sObjectives
Inventory Litigation&Claims
SegmentInfo
Existence&
ConditionCompleteness
Presentation&disclosureinaccordancewithFRF
ObtainSAAE
![Page 143: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/143.jpg)
143 MPVijayKumarFCA
Inventory
Auditor’sProcedures
Attendanceatphysicalinventorycounting
Auditinventoryrecords
Evaluatemgtinstructions&proceduresforrecording
&controllingresults
Observeperformanceofmgtprocedures
InspectinventoryPerformtestcounts
Recordsaccuratelyreflectactualinventorycountresults
AND
![Page 144: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/144.jpg)
144 MPVijayKumarFCA
Litigation&Claims
• Inquiry– ofmanagement&otherswithintheentity
• Review– minutesofmeetingsofTCWG,communicationbetweenentity&externallegalcounsel
• Review– legalexpensesaccount
![Page 145: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/145.jpg)
145 MPVijayKumarFCA
SegmentinformationObtainSAAErepresentation&disclosureofsegmentinfoinaccordancewithapplicableFRF:• Obtainunderstandingofmethodsusedbymgt indeterminingsegmentinfo
• EvaluatingwhethersuchmethodsarelikelytoresultindisclosureinaccordancewithapplicableFRF;and
• Whereappropriate,testingapplicationofsuchmethods
• Performinganalyticalproceduresorotherauditproceduresappropriateinthecircumstances
![Page 146: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/146.jpg)
146 MPVijayKumarFCA
SA505ExternalConfirmations
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 147: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/147.jpg)
147 MPVijayKumarFCA
OverviewofSA505• Introduction
• Scope• External Confirmation Procedures to Obtain AE
• Objective• Definitions• Requirements & Applications
• External Confirmation Procedures• Mgt refusal to allow auditor to send confirmation request• Results of external confirmation procedures• Negative confirmations• Evaluating audit evidence
![Page 148: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/148.jpg)
148 MPVijayKumarFCA
Scope• Dealswithauditor’suseofexternalconfirmationprocedures(ECP)toobtainAuditEvidenceinaccordancewithSA330&SA500
• Doesnotcoverinquirieswrt litigations&claims.
• ImportanceofECPasauditevidencerecognizedinotherSAse.g.SA330,SA240,SA500
![Page 149: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/149.jpg)
149 MPVijayKumarFCA
Auditor’sObjective
• WhenusingECPs,
• Istodesign&performsuchprocedurestoobtainrelevant&reliableauditevidence
![Page 150: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/150.jpg)
150 MPVijayKumarFCA
ExternalConfirmationProcedures
Maintain control over EC Requests including:
1 Determining info to be requested/ confirmed
2 Selecting appropriateconfirming party
3 Designing confirmation requests
4 Sending requests including follow-up requests to confirming party
![Page 151: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/151.jpg)
151 MPVijayKumarFCA
SA510InitialAuditEngagements-OpeningBalances
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 152: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/152.jpg)
152 MPVijayKumarFCA
OverviewofSA510• Introduction
• Scope• Effectivedate
• Objective• Definitions• Requirements
• AuditProcedures• AuditConclusionsandReporting
• ApplicationandOtherExplanatoryMaterialontheseaspects
• Appendix:IllustrationsofAuditors’Report
![Page 153: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/153.jpg)
153 MPVijayKumarFCA
Scope&ObjectiveSCOPE• Deals with auditor’s responsibility relating to openingbalances (OB):
• when conducting Initial Audit Engagement
OBJECTIVE§ Obtain SAAE in respect of OB about whether:
- OB contain material misstatements affecting current period FSand
- Appropriate accounting policies have been consistently appliedOR changes have been properly accounted for and adequatelypresented & disclosed in FS.
![Page 154: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/154.jpg)
154 MPVijayKumarFCA
Definitions• InitialAuditEngagement– AnengagementinwhichPriorPeriodFS
• Notaudited;or• Auditedbyapredecessorauditor.
• OpeningBalances– AccountingBalancesexistingatthebeginning
• Closingbalancesofpriorperiod– Reflecttheeffectofpriorperiodtransactionsandevents,andaccountingpoliciesapplied
• Disclosureofaccountsi.e.,contingencyandcommitments
• Predecessorauditor– Theauditorfromdifferentauditfirm
• AuditedFSinthepriorperiod• Replacedbycurrentauditor.
![Page 155: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/155.jpg)
155 MPVijayKumarFCA
AuditConclusionsandReportingQualifiedorDisclaimer
• UnabletoobtainSAAEwrt OB.
QualifiedorAdverse
• OBcontainmisstatements:• ThatmateriallyaffectcurrentFS,and
• Effectnotproperlyaccountedforordisclosed.
• Accountingpoliciesnotconsistentlyapplied.
• Accountingpolicieschanges notproperlyaccountedordisclosed.
![Page 156: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/156.jpg)
156 MPVijayKumarFCA
SA520ANALYTICALPROCEDURES
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 157: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/157.jpg)
157 MPVijayKumarFCA
OverviewofSA520• Introduction
• Scope• Effectivedate
• Objectives• Definition• Requirements&Application
• Substantiveanalyticalprocedures• Analyticalproceduresthatassistwhenforminganoverallconclusion
• Investigatingresultsofanalyticalprocedures
• Appendix
![Page 158: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/158.jpg)
158 MPVijayKumarFCA
Scope• Dealswithauditor’suseofanalyticalprocedures(AP)as:
• substantiveanalyticalprocedures(SAPs)AND
• proceduresneartheendofaudittohelpinforminganoverallconclusiononFS
• SA315dealswithuseofAPsasriskassessmentprocedures
• SA330includesrequirements&guidancewrt nature,timing,extentofauditprocedures(includingAP)inresponsetoassessedrisks
![Page 159: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/159.jpg)
159 MPVijayKumarFCA
Auditor’sObjectives
OBTAIN DESIGN&PERFORM
Relevant&reliableauditevidencewhenusingSAPs
APsneartheendofauditwhenformingoverallconclusionwhetherFSareconsistentwithauditor’sunderstandingoftheentity
![Page 160: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/160.jpg)
160 MPVijayKumarFCA
MAINREQUIREMENTSSubstantiveAnalyticalProcedures• WhendesigningandperformingSAPs,auditorshall:
• DeterminesuitabilityofparticularSAPs• Evaluatereliabilityofdata• Developexpectationofrecordedamounts/ratios• Determineamountofanydifferenceofrecordedamountsvsexpectedvalues
APsthatAssistWhenForminganOverallConclusion• auditorshalldesignandperformAPsnearendofauditthatassisttheauditorwhenforminganoverallconclusionasto
• whethertheFSareconsistentwithauditor’sunderstandingofentity.
![Page 161: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/161.jpg)
161 MPVijayKumarFCA
SA530AUDITSAMPLING
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2009
![Page 162: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/162.jpg)
162 MPVijayKumarFCA
OverviewofSA530• Introduction
• Scope• EffectiveDate
• Objective• Definitions• Requirements
• SampleDesign,SizeandSelectionofItemsforTesting• PerformingAuditProcedures• NatureandCauseofDeviationsandMisstatements• ProjectingMisstatements• EvaluatingResultsofAuditSampling
• ApplicationandOtherExplanatoryMaterial• Appendices
![Page 163: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/163.jpg)
163 MPVijayKumarFCA
Scope• SAApplieswhenauditorhasdecidedtouseauditsamplinginperformingauditprocedures
• SAdealswithauditor’suseofstatisticalandnon-statisticalsamplingwhen-
• SA530complementsSA500
Designingandselectingauditsample
Performingtestsofcontrolsandtestsofdetails
Evaluatingresultsfromsample
![Page 164: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/164.jpg)
164 MPVijayKumarFCA
Objective
• ObjectiveofAuditorwhenusingAuditSamplingis:
• Toprovideareasonablebasistodrawconclusionsaboutpopulationfromwhichsampleisselected
![Page 165: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/165.jpg)
165 MPVijayKumarFCA
SampleDesign,SizeandSelectionofItemsSampleDesignoWhendesigningauditsample,onsider
• Purposeofauditprocedure• Characteristicsofpopulation
SampleSize• Shouldbesufficienttoreducesamplingrisktoacceptablylowlevel
SelectionofItems• Insuchawaythateachunithaschanceofselection
![Page 166: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/166.jpg)
166 MPVijayKumarFCA
Performingauditprocedures
• Performauditprocedures,appropriatetothepurpose,oneachitemselected.
• Ifauditprocedurenotapplicabletoselecteditem,performprocedureonreplacementitem
• Ifunabletoapplyauditprocedures/alternativeprocedures,toselecteditem,treatthatitemas
• adeviationfromtheprescribedcontrol,inthecaseoftestsofcontrols,or
• amisstatement,inthecaseoftestsofdetails
![Page 167: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/167.jpg)
167 MPVijayKumarFCA
SA540AuditingAccountingEstimates,IncludingFairValueAccountingEstimates,andRelatedDisclosures
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2009
![Page 168: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/168.jpg)
168 MPVijayKumarFCA
OverviewofSA540o Introduction
• Scope• Effectivedate
o Objectiveso Definitions
• Requirements• RiskAssessmentProceduresandRelatedActivities• IdentifyingandAssessingtheRisksofMaterialMisstatement• ResponsestotheAssessedRisksofMaterialMisstatement• FurtherSubstantiveProcedurestoRespondtoSignificantRisk• EvaluatingtheReasonablenessoftheAccountingEstimates(AE),andDetermining
Misstatements• DisclosuresRelatedtoAccountingEstimates• IndicatorsofPossibleManagementBias• WrittenRepresentations• Documentation
o ApplicationandOtherExplanatoryMaterialo Appendix
![Page 169: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/169.jpg)
169 MPVijayKumarFCA
Scope
Scope
ExpandsonapplicationofSA315SA330andotherrelevantSAs
inrelationtoAE
Dealswithauditor’sresponsibility
wrt AE,fairvalueAEAndrelateddisclosures
IncludesrequirementandguidanceonmisstatementsofindividualAE,
andindicatorsofpossiblemanagementbias
![Page 170: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/170.jpg)
170 MPVijayKumarFCA
SomeExamples§ AccountingEstimates
• Allowancefordoubtfulaccounts• Inventoryobsolescence• Warrantyobligations• Depreciationmethodorassetusefullife• Provisionagainstthecarryingamountofaninvestment• Outcomeoflongtermcontracts• FinancialObligations/Costsarisingfromlitigationsettlementsandjudgments
§ FairValueAccountingEstimates• Complexfinancialinstruments,whicharenottradedinanactiveandopen
market• Share-basedpayments• Propertyorequipmentheldfordisposal• Certainassetsorliabilitiesacquiredinabusinesscombination,includinggoodwill
andintangibleassets• Transactionsinvolvingtheexchangepartieswithoutmonetaryconsideration
![Page 171: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/171.jpg)
171 MPVijayKumarFCA
Objective
• ObtainSAAEincontextofapplicableFRFthat:• AEincludingfairvalueAEintheFSarereasonable
AND
• relateddisclosuresintheFSareadequate
![Page 172: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/172.jpg)
172 MPVijayKumarFCA
RiskAssessmentProceduresandRelatedActivities
Auditortoobtainunderstandingof:
RequirementsofapplicableFRFrelevanttoAE,includingrelated
disclosures
Howmgt identifiestransaction,eventsandconditionsgivingrisetotheneedforAEtobedisclosedintheFS
Howmgt makesAEandunderstandingofthedataonwhichtheyarebased
![Page 173: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/173.jpg)
173 MPVijayKumarFCA
SA550RelatedParties(RP)
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 174: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/174.jpg)
174 MPVijayKumarFCA
OverviewofSA550Ø Introduction
• Scope• EffectiveDate
ØObjectivesØDefinitionsØRequirements
• RiskAssessmentProceduresandRelatedActivities• IdentificationandAssessmentoftheRisksofMaterialMisstatementAssociated
withRelatedPartyRelationshipsandTransactions• ResponsestotheRisksofMaterialMisstatementAssociatedwithRelatedParty
RelationshipsandTransactions• EvaluationoftheAccountingforandDisclosureofIdentifiedRelatedParty
RelationshipsandTransactions• WrittenRepresentations• CommunicationwithThoseChargedwithGovernance• Documentation
ØApplication&OtherExplanatoryMaterialontheseaspects
![Page 175: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/175.jpg)
175 MPVijayKumarFCA
Scope
• DealswithAuditor’sresponsibilities:• regardingRPrelationshipsandtransactionswhenperformingauditofFS.
• ExpandsonapplicationofSAs315,330,240wrt:• risksofmaterialmisstatementsassociatedwithRPrelationshipsandtransactions.
![Page 176: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/176.jpg)
176 MPVijayKumarFCA
ResponsibilitiesofAuditorPerformprocedurestoidentify,assessandrespondtoriskofmaterialmisstatementonaccountoffailuretoaccountfor/discloseRPrelationship,transactionandbalancesaslaiddownbyFRF.o EvaluatepresenceoffraudriskfactorsasperSA240.o EvenIfFRFestablishesminimalornorequirements–
• concludewhetherFSachieveatrue&fairview;and
• arenotmisleading
oAuditor’sinabilitytodetectmaterialmisstatementsisgreaterincaseofRPrelationship/Transactions.
![Page 177: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/177.jpg)
177 MPVijayKumarFCA
Auditor’sObjectives• ObtainanunderstandingofRPrelationships&transactions(irrespectiveofwhetherFRFestablishesRPrequirements)sufficienttobeableto:oRecognizefraudriskfactors.oConcludewhetherFS:
§ achieveatrueandfairpresentationand§ arenotmisleading.
• WhereFRFestablishesRPrequirements:oObtainSAAEaboutwhether:
§ RPrelationships&transactionsappropriatelyidentified,accountedfor&disclosedinFSinaccordancewithFRF.
![Page 178: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/178.jpg)
178 MPVijayKumarFCA
RiskAssessmentProcedures(RAPs)&RelatedActivities
RiskAssessmentProcedures&
RelatedActivities(SA315&SA240)
UnderstandingtheEntity’sRP
Relationships&Transactions
MaintainingAlertnessforRPInformationwhenreviewing
Records/Documents
SharingRPInformationwithEngagement
Team
![Page 179: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/179.jpg)
179 MPVijayKumarFCA
SA560SubsequentEvents(SE)
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2009
![Page 180: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/180.jpg)
180 MPVijayKumarFCA
Overview• Introduction
§ Scope§ Effectivedate
• Objectives• Definitions• Requirements
§ EventsoccurringbetweenthedateoftheFinancialStatementsandthedateoftheAuditor’sReport
§ FactsWhichBecomeKnowntotheAuditorAftertheDateoftheAuditor’sReportbutBeforetheDatetheFinancialStatementsareIssued
§ FactsWhichBecomeKnowntotheAuditorAftertheFinancialStatementshavebeenIssued
• ApplicationandOtherExplanatoryMaterial
![Page 181: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/181.jpg)
181 MPVijayKumarFCA
Scope
• DealswithAuditor’sresponsibilitiesrelatingtoSEinauditofFS.
• TwotypesofSE:• TYPE1:provideevidenceofconditionsthatexistedatdateofFS
• TYPE2:provideevidenceofconditionsthataroseafterdateofFS.
![Page 182: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/182.jpg)
182 MPVijayKumarFCA
Objectives
DateofFS
DateofAuditreport
DotheseSErequireadjustmentof/disclosureinFS
ObtainSAAE
FactsthatwouldhaveledtoamendedARifknownatdateofAR
Respondappropriately
![Page 183: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/183.jpg)
183 MPVijayKumarFCA
Definitions• DateofFS
• DateofendoflatestperiodcoveredbyFS
• DateofApprovalofFSDateonwhich• CompletesetofFSincludingtherelatednotesprepared;and• AppropriatepersonsassertresponsibilityforabovecompletesetofFS.
• DateofAuditor’sReport• DateofARonFSinaccordancewithSA700• CannotbebeforeSAAEobtainedtoformopinion• CannotbeearlierthanthedateofapprovalofFS
• DateofIssuanceofFS• WhenAR&auditedFSmadeavailableto3rdparties
![Page 184: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/184.jpg)
184 MPVijayKumarFCA
Definition– SubsequentEvents
(1)Eventsoccurringbetween:• ThedateofFS;andthedateofAR
AND(2)FactsthatbecomeknowntoauditorafterdateofAR.
![Page 185: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/185.jpg)
185 MPVijayKumarFCA
SA570GoingConcern(GC)
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2009
![Page 186: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/186.jpg)
186 MPVijayKumarFCA
OverviewofSA570§ Introduction
• Scope• EffectiveDate
§ Objectives
§ Requirements• RiskAssessmentProceduresandRelatedActivities• EvaluatingManagement’sAssessment• PeriodBeyondManagement’sAssessment• AdditionalAuditProcedureswhenEventsorConditionsareIdentified• AuditConclusionsandReporting• UseofGoingConcernAssumptionAppropriatebutaMaterialUncertaintyExists
• UseofGoingConcernAssumptionInappropriate• ManagementUnwillingtoMakeorExtendItsAssessment• CommunicationwithThoseChargedwithGovernance• SignificantDelayintheApprovaloftheFinancialStatements
§ Application&OtherExplanatoryMaterialontheseAspects
![Page 187: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/187.jpg)
187 MPVijayKumarFCA
Scope
DealswithAuditor’sresponsibilityinAuditofFS
Wrt management’suseofGCAssumption
InthePreparation&PresentationofFS
![Page 188: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/188.jpg)
188 MPVijayKumarFCA
ResponsibilitiesofManagement• GC- afundamentalprincipleinpreparationofFinancialStatements
• ManagementtomakeaspecificassessmentofGCAssumption
• Judgmentaboutinherentlyuncertainfutureoutcomeofevents/conditions
• Period- atleast12monthsfromdateofFS• Basedon– Informationavailableatparticularpointoftime• Affectedby– Size&Complexityofentity,Nature&Conditionofbusiness
![Page 189: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/189.jpg)
189 MPVijayKumarFCA
ResponsibilitiesofAuditor
Obtain SAAE about appropriatenessof management’s use of GCassumption AND
Conclude whether there is materialuncertainty about entity’s ability tocontinue as GC
AbsenceofanyreferencetoGCuncertaintyinAuditor’sreport
nottobeviewedasguaranteeastoentity’sabilitytocontinueasGC
![Page 190: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/190.jpg)
190 MPVijayKumarFCA
Auditor’sObjective
§ ObtainSAAE:• aboutappropriatenessofuseofGCAssumptioninpreparation&presentationofFS.
§ Conclude,basedonauditevidence:• whetheramaterialuncertaintyexiststhatmaycastsignificantdoubtonentity’sabilitytocontinueasGC.
§ Determine• implicationsfortheauditor’sreport.
![Page 191: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/191.jpg)
191 MPVijayKumarFCA
SA580WrittenRepresentations
EffectiveforauditsoffinancialstatementsforperiodsbeginningonorafterApril1,2009
![Page 192: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/192.jpg)
192 MPVijayKumarFCA
OverviewofSA580o Introduction
• Scope• WrittenRepresentations(WR)asAuditEvidence• EffectiveDate
o Objectiveso Definitionso Requirements
• ManagementfromwhomWRRequested• WRaboutManagement’sResponsibilities• OtherWR• DateofandPeriod(s)CoveredbyWR• FormofWR• DoubtastotheReliabilityofWRandRequestedWRNotProvided
o Application&OtherExplanatoryMaterialontheseAspects
![Page 193: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/193.jpg)
193 MPVijayKumarFCA
Scope
DealswithAuditor’sResponsibilitytoobtainWRfrom
Management TCWG(whereappropriate)
![Page 194: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/194.jpg)
194 MPVijayKumarFCA
WRasAuditEvidence
• WRarenecessaryauditevidence:• butdonotprovideSAAE.
• WRdonotdiluteauditor’sresponsibilitytoobtainotherauditevidenceformatterscoveredbyWR.
• IfMgt.modifiesordoesnotproviderequestedWR-
• possibilityofexistenceofoneormoresignificantissues.
![Page 195: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/195.jpg)
195 MPVijayKumarFCA
Auditor’sObjectives
Supportotherauditevidence
ObtainWRthatMgt/TCWGhavefulfilledtheirresponsibilitiesreg:
PreparationoftheFSandCompletenessofinfo.providedtoauditor
Respondappropriatelyto:WRprovided,or
Mgt/TCWGrefusaltoprovideWR
![Page 196: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/196.jpg)
196 MPVijayKumarFCA
WRrequiredaboutManagement’sResponsibilities§ PreparationoftheFS:
§ CompliancewithapplicableFRF.
§ InformationProvided&completenessoftransactions:§ HasprovidedallrelevantinformationandaccessasagreedintermsofAuditEngagement.
§ Alltransactionsrecorded&reflectedinFS.
§ Descriptionofmanagement’sresponsibilitiesinWR§ Management’sresponsibilitiesshallbedescribedinWRinthemannerinwhichtheseresponsibilitiesdescribedintermsofauditengagement
![Page 197: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/197.jpg)
197 MPVijayKumarFCA
SA600UsingtheWorkofAnotherAuditor
EffectiveforallauditsrelatingtoaccountingperiodsbeginningonorafterApril1,2002
![Page 198: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/198.jpg)
198 MPVijayKumarFCA
Introduction
• Establishesstandardsforapplicationinsituationswhereauditorusestheworkofanotherauditor.
• Doesnotcover:• Jointaudits.• Relationshipwithpredecessorauditor.
• Considerhowotherauditor’sworkaffectstheaudit.
![Page 199: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/199.jpg)
199 MPVijayKumarFCA
DefinitionsPrincipalAuditor(PA):• Auditorresponsibleforfinancialinformation(FI)ofanentitywhenitincludesFIofoneormorecomponentsauditedbyanotherauditor.
OtherAuditor(OA):• Auditor,otherthanPA,whoisresponsibleforreportingonFIofacomponentwhichisincludedinFIauditedbythePA.
Component:• Division,branch,subsidiary,jointventure,associatedenterpriseoranyotherentitywhoseFIisincludedinFIauditedbyPA.
![Page 200: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/200.jpg)
200 MPVijayKumarFCA
PA’sProcedures• ConsidertheprofessionalcompetenceofOA,ifOAisnotamemberofICAI.
• Visitcomponentandexaminebooksofaccount,ifessential.
• Obtainsufficientappropriateevidence,thatworkofOAisadequateforPA'spurposes.
• DiscussauditproceduresappliedbyOA.
![Page 201: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/201.jpg)
201 MPVijayKumarFCA
PA’sProcedures• ReviewawrittensummaryofOA’sproceduresandfindingsthroughquestionnaires/checklist.
• ConsidersignificantfindingsofOA:• discussauditfindingswithOAandMgt.ofcomponent.• performsupplementaltestsifnecessary.
• IncaseOAisnotaprofessionallyqualifiedauditor- forinstance,whereacomponentissituatedinforeigncountry:
• Proceduresmentionedaboveassumeaddedimportance.
![Page 202: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/202.jpg)
202 MPVijayKumarFCA
DocumentationComponentswhoseFSareauditedbyOAandtheirsignificancetothefinancialinformationoftheentityasawhole.
• Namesoftheotherauditors.• Anyconclusionsreachedthatindividualcomponentsarenotmaterial.
• Proceduresperformedregardingcomponents.• Conclusionsreached.• MannerofdealingwithModifiedReportofOAwhilefinalising PA’sReport.
![Page 203: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/203.jpg)
203 MPVijayKumarFCA
Co-ordinationBetweenAuditors
• Sufficientliaison/co-ordinationbetweenPAandOA.• PAmayrequireOAtoansweradetailedquestionnaire.
• OAshouldcoordinatewithPA:• adheringtotime-table.• bringingtotheattentionofPAanysignificantfinding.• compliancewithrelevantstatutoryrequirements.• respondtodetailedquestionnaire.
![Page 204: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/204.jpg)
204 MPVijayKumarFCA
ReportingConsiderations
• Expressaqualified/disclaimerofopinionbecauseofscopelimitation:
• ifPAconcludesthathecannotusetheworkofOAand• PAunabletoperformsufficientadditionalproceduresregardingFIofthecomponentauditedbyOA.
• ReportshouldstateclearlydivisionofresponsibilitybetweenPAandOA.
![Page 205: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/205.jpg)
205 MPVijayKumarFCA
SA610UsingtheWorkofInternalAuditors
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 206: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/206.jpg)
206 MPVijayKumarFCA
OverviewofSA610Introduction
• Scope• EffectiveDate
§ Objectives§ Definitions§ Requirements
• DeterminingWhetherandtoWhatextenttousetheworkoftheInternalAuditors
• UsingSpecificWorkoftheInternalAuditors• Documentation
§ ApplicationandOtherExplanatoryMaterial
![Page 207: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/207.jpg)
207 MPVijayKumarFCA
Scope
1. DealswithExternalAuditor’sresponsibility:a) Regardingtheworkofinternalauditorsb) Whenexternalauditorhasdeterminedin
accordancewithSA315that• internalauditfunctionislikelytoberelevanttoaudit
2. Doesnotdealwith caseswhereinternalauditorsprovidedirectassistancetoexternalauditorsincarryingoutauditprocedures
![Page 208: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/208.jpg)
208 MPVijayKumarFCA
RelationshipbetweenInternalAuditFunction&ExternalAuditor
§ Role&objectivesofinternalauditfunctiondeterminedbyMgt/TCWG.
§ IrrespectiveofDegreeofautonomy/objectivity,internalauditfunctionisnot independentofentity.
§ externalauditorhassoleresponsibilityforauditopinion,and
• thatresponsibilitynotreducedbyuseofworkofinternalauditors.
![Page 209: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/209.jpg)
209 MPVijayKumarFCA
Auditor’sobjectives
Ifexternalauditordeterminesinternalauditfunctionlikelytoberelevanttoaudit,heneedstodetermine:
• whether&towhatextenttousespecificworkofinternalauditors;and
• Ifso,whethersuchworkisadequateforexternalauditpurpose.
![Page 210: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/210.jpg)
210 MPVijayKumarFCA
UsingSpecificWorkofIAEvaluatetheworktodetermineitsadequacywhether:• WorkwasperformedbyIAhavingadequatetechnicaltraining&proficiency.
• Workwasproperlysupervised,reviewed&documented.
• AdequateauditevidenceobtainedbyIA.• Conclusionsreachedareappropriate&IAreportsareconsistentwithresultsofwork.
• Exceptions/unusualmattersdisclosedbyIAareproperlyresolved.
![Page 211: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/211.jpg)
211 MPVijayKumarFCA
SA620UsingtheWorkofAnAuditor’sExpert
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 212: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/212.jpg)
212 MPVijayKumarFCA
OverviewofSA620• Introduction
• Scope• Theauditor’sresponsibilityfortheauditopinion• Effectivedate
• Objectives• Definitions• Requirements&Application
• Determiningtheneedforanauditor’sexpert• Nature,timing&extentofauditprocedures• Competence,capabilities&objectivityoftheauditor’sexpert• Obtaininganunderstandingoffieldofexpertiseofauditor’expert• Agreementwiththeauditor’sexpert• Evaluatingtheadequacyoftheauditor’sexpert’swork• Referencetotheauditor’sexpertinauditreport
![Page 213: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/213.jpg)
213 MPVijayKumarFCA
ScopeofSA
Auditor’sresponsibilities
Individualororganisation’s work
AuditorusesthisworkinobtainingSAAE
![Page 214: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/214.jpg)
214 MPVijayKumarFCA
ResponsibilityforAuditOpinion
• Auditopinionissoleresponsibilityofauditor
• Thatresponsibilitynotreducedbyuseofworkofauditor’sexpert
• Nonetheless,IfrequirementsofthisSAarefollowed&auditorconcludesexpert’sworkisadequate,hemayacceptthatworkasSAAE.
![Page 215: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/215.jpg)
215 MPVijayKumarFCA
Auditor’sObjectives
Determine
Whethertouseworkof
auditor’sexpert
Ifyes,whetherthatworkisadequate
forauditor’spurposes
![Page 216: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/216.jpg)
216 MPVijayKumarFCA
Competence,Capabilities&ObjectivityofAuditor’sExpert• Evaluatecompetence,capability&objectivityofexpert
• IfExternalexpert- inquireintointerestsandrelationshipsthatthreatenobjectivity
1. Competence• nature&levelofexpertise
2. Capability• abilitytoexercisecompetenceincircumstancesofengagement
3. Objectivity• possibleeffectsthatbias/conflictofinterest/influenceofothersmayhaveonprofessional/businessjudgment
![Page 217: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/217.jpg)
217 MPVijayKumarFCA
SA700ForminganOpinion&ReportingonFinancial
Statements
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2012
![Page 218: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/218.jpg)
218 MPVijayKumarFCA
OverviewofSA700§ Introduction
• Scope• EffectiveDate
§ Objectives§ Definitions§ Requirements
• ForminganopiniononFS• Formofopinion• Auditor’sreport• SupplementaryinformationpresentedwithFS
• ApplicationandOtherExplanatoryMaterial• Appendix- IllustrativeFormatsofAuditorReport
![Page 219: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/219.jpg)
219 MPVijayKumarFCA
Scope• Dealswithauditor’sresponsibilitytoformanopinionontheFS
• Alsodealswithform&contentofauditor’sreportissuedasaresultofanauditofFS
• Modifiedopinion,EMP,OMPdealtwithbySA705&706• SA700writtenincontextofgeneralpurposeFS
• FSunderspecialpurposeframeworkdealtbySA800&SA805
• Itpromotesconsistencyinauditreports
![Page 220: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/220.jpg)
220 MPVijayKumarFCA
Auditor’sObjectives
• FormanopiniononFSbasedonevaluationofconclusionsdrawnfromauditevidence
AND• Express clearlythatopinionthroughawrittenreportthatalsodescribesthebasisforopinion
![Page 221: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/221.jpg)
221 MPVijayKumarFCA
ForminganOpiniononFS
• WhetherFSarepreparedinallmaterialrespectsinaccordancewithapplicableFRF
• Toformthisopinion,auditorneedstoconcludewhetherhehasobtainedreasonableassurancethatFSasawholearefreeofmaterialmisstatements(fraud/error)
![Page 222: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/222.jpg)
222 MPVijayKumarFCA
FormofOpinion
• UNMODIFIEDOPINION:• AuditorconcludesFSarepreparedinallmaterialrespectsasperapplicableFRF
• MODIFIEDOPINION(dealtbySA705):• Basedonauditevidence,auditorconcludesFSasawholenotfreefrommaterialmisstatements OR
• AuditorunabletoobtainSAAEthatFSasawholearefreefrommaterialmisstatements
![Page 223: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/223.jpg)
223 MPVijayKumarFCA
Auditor’sReport
• Shallbeinwriting• Writtenreportencompassesreportsissued:• inhardcopyformatAND• usingelectronicmedium
![Page 224: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/224.jpg)
224 MPVijayKumarFCA
TitleAddresseeIntroductoryParaMgt ResponsibilityforFSParaAuditor’sResponsibilityParaAuditor’sOpinionOtherReportingResponsibilities
SignatureoftheAuditor
DateoftheAuditor’sReport
PlaceofSignature
AuditReportforAudits
ConductedinAccordancewithSAs
ELEMENTS
![Page 225: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/225.jpg)
225 MPVijayKumarFCA
SA705ModificationstotheOpinioninthe
IndependentAuditor’sReport
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2012
![Page 226: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/226.jpg)
226 MPVijayKumarFCA
OverviewofSA705• Introduction
• Scope• EffectiveDate
• Objective• Definitions• Requirements&applications
• Circumstanceswhenmodificationofauditor’sopinionisrequired
• Determiningtypeofmodificationtoauditopinion• Form&contentofauditreportwithmodifiedopinion
• CommunicationwithTCWG
![Page 227: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/227.jpg)
227 MPVijayKumarFCA
Scope
• DealswithAuditor’sresponsibilitytoIssueanappropriatereportincircumstanceswhen:§ InforminganopinionasperSA700,Auditorconcludesthatamodificationtoauditor’sopinionisnecessary
![Page 228: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/228.jpg)
228 MPVijayKumarFCA
TypesofModifiedOpinions
Qualified Adverse Disclaimer
Natureofmattergivingrisetomodification
Auditor’sjudgmentrepervasivenessofeffects/possibleeffectsofmatteronFS
WhetherFSaremateriallymisstated
InabilitytoobtainSAAEleadingtopossiblematerialmisstatementinFS
AffectingFactors
AND
![Page 229: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/229.jpg)
229 MPVijayKumarFCA
Auditor’sObjective
• Expressclearlyanappropriatelymodifiedopinionthatisnecessarywhenauditor:
• CONCLUDES (basedonauditevidenceobtained)thatFSareasawholenotfreefrommaterialmisstatements
OR• UNABLE toobtainSAAEtoconcludethatFSasawholearefreeofmaterialmisstatements
![Page 230: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/230.jpg)
230 MPVijayKumarFCA
DeterminingtheTypeofModificationtoAuditor’sOpinion
NatureofMatterGivingRiseto
theModification
Auditor’sJudgmentaboutthePervasivenessoftheEffectsor
PossibleEffectsontheFSMaterialbutNot
PervasiveMaterialand
PervasiveFSarematerially
misstatedQualifiedopinion
Adverseopinion
InabilitytoobtainSAAE
Qualifiedopinion
Disclaimerofopinion
![Page 231: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/231.jpg)
231 MPVijayKumarFCA
SA706EmphasisofMatterParagraphsandOtherMatterParagraphsintheIndependentAuditor’sReport
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2012
![Page 232: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/232.jpg)
232 MPVijayKumarFCA
OverviewofSA706• Introduction
• Scope• Effectivedate
• Objective• Definitions• Requirements&Application
• Emphasisofmatterparagraphs• Othermatterparagraphs• CommunicationwithTCWG
![Page 233: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/233.jpg)
233 MPVijayKumarFCA
Scope&Auditor’sObjectives
• DealswithAdditionalcommunicationinauditreport(AR)
• Whenauditorconsidersitnecessarytodrawusers’attentionto:
• Matter/spresentedordisclosedinFSthatareofsuchimportancethattheyarefundamentaltousers’understandingofFS
OR• Matter/sotherthanthosepresented/disclosedinFSthatarerelevanttousers’understandingofaudit/auditor’sresponsibilities/AR
![Page 234: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/234.jpg)
234 MPVijayKumarFCA
EMPinAuditReport
• MattersfundamentaltounderstandingofFS• AuditorshouldhaveobtainedSAAEthatmatterisnotmateriallymisstatedinFS
• EMPtoreferonlytoinfopresented/disclosedinFS
• WidespreaduseofEMPreduceseffectivenessofauditor’scommunicationofsuchmatters
• MoreinfoinEMPthanFSmayimplymatternotadequatelypresenteddisclosedinFS
• Thus,EMPlimitedtomatterpresented/disclosedinFS
![Page 235: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/235.jpg)
235 MPVijayKumarFCA
OMPinAuditReport
• IncludeifnotprohibitedbyL&R• Useheading“OtherMatter”/otherappropriateheading
• Placement:• immediatelyafterOpinionpara&EMPor• elsewhereifOMPisrelevanttoOtherReportingResponsibilitiessection
![Page 236: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/236.jpg)
236 MPVijayKumarFCA
SA710ComparativeInformation– CorrespondingFigures
andComparativeFinancialStatements
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2011
![Page 237: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/237.jpg)
237 MPVijayKumarFCA
Overview§ Introduction
• Scope• Effectivedate
§Objectives§Definitions§ Requirements&Application
• Auditprocedures• Auditreporting
§ Appendix:Illustrativeauditor’sreports
![Page 238: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/238.jpg)
238 MPVijayKumarFCA
Definition- ComparativeInformation
Amountsanddisclosures
IncludedinFS
Inrespectofoneormorepriorperiods
InaccordancewithapplicableFRF
![Page 239: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/239.jpg)
239 MPVijayKumarFCA
Scope• Dealswithauditor’sresponsibilitiesrelatingtocomparativeinfoinauditofFS
• WhenpriorperiodFSwereauditedbyanotherauditororwerenotaudited:
• RequirementsofSA510wrt openingbalancesalsoapply
• NatureofComparativeInfo:• DependsuponapplicableFRF.• Twoapproaches:
• Correspondingfigures• ComparativeFS
• ApproachoftenspecifiedbyL&R• Mayalsobespecifiedbytermsofengagement
![Page 240: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/240.jpg)
240 MPVijayKumarFCA
CorrespondingFiguresvisavisComparativeFS– Auditreportingdifferences
CorrespondingFigures ComparativeFSAuditor’s opinion on FSrefers to current periodonly
Auditor’s opinion refers toeach period for which FSare presented
SA710separatelycoversauditreportingforbothtypesofapproaches
![Page 241: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/241.jpg)
241 MPVijayKumarFCA
Auditor’sObjectivesOBTAIN REPORT
SAAE
Whethercomparativeinfo(CI)includedinFShasbeenpresented
inallmaterialrespectsinaccordancewithrequirementsofapplicableFRF
Inaccordancewithauditor’sreportingresponsibilities
and
![Page 242: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/242.jpg)
242 MPVijayKumarFCA
SA720TheAuditor’sResponsibilitiesinRelationtoOtherInformationinDocumentsContaining
AuditedFinancialStatements
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2010
![Page 243: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/243.jpg)
243 MPVijayKumarFCA
OverviewofSA720• Introduction
• Scope• Effectivedate
• Objective• Definitions• Requirements
• ReadingOtherInformation(OI)• MaterialInconsistencies• MaterialMisstatementofFact
• Application&OtherExplanatoryMaterialontheseaspects
![Page 244: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/244.jpg)
244 MPVijayKumarFCA
Scope• Dealswithauditor’sresponsibilitywrt otherinformation(OI)indocumentscontaining:
• auditedFSandauditor’sopinionthereon.
• Unlessanyspecificrequirementinanengagement:• Auditor’sopiniondoesnotcoverOI.• AuditorhasnospecificresponsibilitytodeterminewhetherOIisproperlystated.
• BUT,needtoreadtheOI since:• inconsistenciesofOIvis-a-visauditedFSunderminesthecredibilityoftheauditedFS.
![Page 245: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/245.jpg)
245 MPVijayKumarFCA
Auditor’sObjective
• Respondappropriately:§wheresuchotherinformationcouldunderminecredibilityofauditedFSandAuditReport.
![Page 246: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/246.jpg)
246 MPVijayKumarFCA
DefinitionsOtherInformation(OI)§ Financial&non-financialinformation,Includedbylaw/regulation/custom,indocumentscontainingauditedFSandAuditReport.Examples:
• Reportbymanagement/TCWG.• Financialsummaries/highlights.• Financialratios.• Selectedquarterlydata.
• Doesnotinclude:• Pressrelease/transmittalmemorandumaccompanyingthedocumentscontainingauditedFS.
• Informationcontainedinanalystbriefings.• Informationonentity’swebsite.
![Page 247: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/247.jpg)
247 MPVijayKumarFCA
DefinitionsInconsistency• OIthatcontradictsinformationcontainedinauditedFS.
• Mayraisedoubtabout:• auditconclusionsdrawnfromauditevidenceobtainedearlier.
• basisofauditopiniononFS.
MisstatementofFact• OIthatis:
• unrelatedtoauditedFSand• incorrectlystated/presented.
• MayunderminecredibilityofauditedFS.
![Page 248: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/248.jpg)
248 MPVijayKumarFCA
MainRequirementsReadingOI• ReadOItoidentifymaterialinconsistenciesvis-a-visauditedFS.
• Makeappropriatearrangementswithmgt/TCWGtogetOIbeforedateofAuditReport:§ Helpstimelyresolutionofpossiblematerialinconsistency/misstatementoffacts.
§ AgreementwithmanagementastotimeofavailabilityofOI.§ Ifnotpossiblebefore,thengetOI,assoonaspracticable.
MaterialInconsistencies• Itmaterialinconsistenciesidentified:
§ DeterminewhetherauditedFSorOIneedsrevision
![Page 249: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/249.jpg)
249 MPVijayKumarFCA
StandardonQualityControl(SQC)1QualityControlforFirmsthatPerformAudits&ReviewsofHistoricalFinancialInformation,andOtherAssurance&
RelatedServicesEngagements
EffectiveforallEngagementsrelatingtoaccountingperiodbeginningonorafterApril1,2009
![Page 250: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/250.jpg)
250 MPVijayKumarFCA
Objective
• Firm’s responsibility for its system of quality control for:• Audits and reviews of historical financial information
• Other assurance and related services engagements
Note:• QualitycontrolresponsibilityoffirmpersonnelforspecificengagementssetoutinotherStandards,
e.g., SA 220.
![Page 251: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/251.jpg)
251 MPVijayKumarFCA
Parameters
SQC1istobereadinconjunctionwith
• TheCharteredAccountantsAct,1949• CodeofEthics• OtherrelevantpronouncementsofICAI
Collectivelyknownas“theCODE”.
![Page 252: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/252.jpg)
252 MPVijayKumarFCA
SystemofQualityControl
Allfirmsshouldestablishasystemofqualitycontrolthatprovidesreasonableassurancethat:
• Firm&itspersonnelcomplywithprofessionalstandards,regulatory&legalrequirements.
• Reportsissuedbyfirmorpartnersareappropriateinthecircumstances.
![Page 253: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/253.jpg)
253 MPVijayKumarFCA
Definitions
• Engagementdocumentation• Engagementpartner• Engagementquality
controlreview• Engagementqualitycontrol
reviewer• Engagementteam• Firm• Inspection• Listedentity
•Monitoring• Networkfirm• Network• Partner• Personnel• Professionalstandards• Reasonableassurance• Staff• Suitablyqualified
externalperson
![Page 254: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/254.jpg)
254 MPVijayKumarFCA
ElementsofSystemofQualityControl
1. Leadershipresponsibilitiesforquality
2. Ethicalrequirements
3. Clientacceptance/continuance
4. Humanresources
5. Engagementperformance
6. Monitoring
![Page 255: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/255.jpg)
255 MPVijayKumarFCA
Documentation
§ DocumentQCpolicies&procedures
§ Communicatetoallfirmpersonnel:• descriptionofQCpolicies• objectivestobeachievedtherefrom• allresponsibleforquality• allexpectedtocomply
§ ObtainfeedbackonQCsystemfrompersonnel
![Page 256: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/256.jpg)
256 MPVijayKumarFCA
SA800SpecialConsiderations– AuditofFinancialStatements
PreparedinAccordancewithSpecialPurposeFrameworks
EffectiveforAuditsoffinancialstatementsforperiodsbeginningonorafterApril1,2011
![Page 257: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/257.jpg)
257 MPVijayKumarFCA
OverviewofSA800§ Introduction
• Scope
• Effectivedate
§ Objective
§ Definitions
§ Requirements&Applications• considerationswhenacceptingtheengagement• considerationswhenplanning&performingtheaudit• forminganopinion&reportingconsiderations
![Page 258: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/258.jpg)
258 MPVijayKumarFCA
ScopeofSA800• DealswithspecialconsiderationsintheapplicationofotherSAs:
• ToauditofFSpreparedinaccordancewithaspecialpurposeframework(SPF)
• WritteninthecontextofcompletesetofFSpreparedinaccordancewithaSPF
• DoesnotoverriderequirementsofotherSAs;
![Page 259: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/259.jpg)
259 MPVijayKumarFCA
Auditor’sObjectiveAddressappropriatelyspecialconsiderationsrelevantto:
• Engagementacceptance
• Engagementplanning&performance
• Formingopinion&reportingonFS
![Page 260: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/260.jpg)
260 MPVijayKumarFCA
EngagementAcceptance- Considerations• Obtainunderstandingof:
• PurposeforwhichFSareprepared• Intendedusers• Stepstakenbymgt todeterminethatapplicableFRFisacceptable
![Page 261: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/261.jpg)
261 MPVijayKumarFCA
Planning&PerforminganAudit–Considerations• DeterminewhethertheapplicationofSAsrequirespecialconsiderationsincircumstancesoftheengagement
![Page 262: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/262.jpg)
262 MPVijayKumarFCA
ForminganOpinion&ReportingConsiderationsApplySA700(R)Also:• DescribethepurposeforwhichFSareprepared&intendedusers
• Ifmgt hasachoiceofFRFsinthepreparationofFS:• Explanationofmgt’s responsibilityfortheFSmakereferencetoitsresponsibilityfordeterminingacceptabilityofapplicableFRF.
• EvaluatewhetherFSadequatelydescribetheFRFapplied• IncludeEmphasisofMatterparatoalertusersreapplicationofspecialpurposeFRF
• FSmaynotsuitableforanotherpurpose
![Page 263: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/263.jpg)
263 MPVijayKumarFCA
SA805SpecialConsiderations– AuditsofSingleFS&SpecificElements,AccountsorItemsofFS
Effectiveforauditsofsinglefinancialstatementsorofspecificelements,accountsoritemsforperiods
beginningonorafterApril1,2011
![Page 264: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/264.jpg)
264 MPVijayKumarFCA
Overview• Introduction
• Scope• Effectivedate
• Objective
• Definitions
• Requirements&Application• Considerationswhenacceptingtheengagement• Considerationswhenplanning&performingtheaudit• Forminganopinionandreportingconsiderations
![Page 265: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/265.jpg)
265 MPVijayKumarFCA
Scope• SA 805 deals with special considerations in applicationof Other SAs to:
• Audit of single financial statements (SFS)• Specific element/account/ item of FS (EFS)
• IT DOES NOT:• Apply to the report of component auditor• Override the requirements of other SAs• Deal with all special considerations that may be relevant inthe circumstances of the engagement
![Page 266: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/266.jpg)
266 MPVijayKumarFCA
Auditor’sObjective• Addressappropriatelyspecialconsiderationsrelevantto:
• Acceptanceoftheengagement• Planning&performanceofthatengagement• Forminganopinion&reportingonSFS&EFS
![Page 267: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/267.jpg)
267 MPVijayKumarFCA
ApplicationofSAs• SA200requirescompliancewithallSAsrelevanttoaudit
• ThisappliestoauditofSFSeveniftheauditoralsoauditsthecompleteFS.
• IfauditornotalsoengagedtoauditthecompleteFS,considerthepracticabilityofauditofSFSinaccordancewithSAs.
![Page 268: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/268.jpg)
268 MPVijayKumarFCA
AcceptabilityofFRF§ AuditortodetermineacceptabilityofFRF(SA210)
§ ConsiderwhetherFRFincludesallrequirementsrelevanttopreparationofSFS/EFS
§ ForauditofSFS,determine:• WhetherapplicationofFRFwillresultinpresentationthatprovidesadequatedisclosurestoenableintendeduserstounderstandinfoconveyedinSFSand
• EffectofmaterialtransactionsandeventsoninfoconveyedinSFS
![Page 269: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/269.jpg)
269 MPVijayKumarFCA
FormofOpinion• ExpectedformofopiniondependsuponapplicableFRF&applicableL&R
• Communicateexpectedformofreport– SA210• Considerwhetherexpectedformofopinionisappropriateinthecircumstances
![Page 270: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/270.jpg)
270 MPVijayKumarFCA
Planning&PerformanceConsiderations
• AdaptallSAsasnecessaryintheauditofSFS• CarefulconsiderationofrelevanceofeachSAisnecessary
• WhenauditingSFSinconjunctionwithfullFS,auditevidenceobtainedaspartofauditoffullFSmaybeusefulBUTauditorneverthelessneedstoplan&performauditofSFStoobtainSAAE
• SomeitemsfromcompleteFSmaybeinterrelatedwithEFS
• Auditorwouldneedtoperformproceduresonsuchinterrelateditems
• MaterialityofSFS<materialityforfullFS
• AffectsNatureTimingExtentofauditprocedures
![Page 271: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/271.jpg)
271 MPVijayKumarFCA
FormingOpinion&Reporting-Considerations• ApplySA700,asnecessary.• IfalsoengagedtoreportonfullFS,expressseparateopiniononeachengagement.
• IfauditedSFSpublishedwithentity’sauditedfullFS,presentationofSFSshouldbeclearlydifferentiatedfromfullFS.
• DonotissueauditreportonSFSuntilsatisfiedwiththedifferentiation.
![Page 272: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/272.jpg)
272 MPVijayKumarFCA
SA810EngagementstoReporton
SummaryFinancialStatements
Effectiveforauditsofsinglefinancialstatementsorofspecificelements,accountsoritemsforperiodsbeginningonorafterApril1,2011
![Page 273: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/273.jpg)
273 MPVijayKumarFCA
OverviewofSA810• Introduction
• Scope• Effectivedate
• Objectives• Definitions• Requirements&Application
• Engagementacceptance• Natureofprocedures• Formofopinion• Timingofworkandeventssubsequenttothedateofauditor’sreport• Auditreportonsummaryfinancialstatements• Restrictionondistributionoruse• Comparatives• Unauditedsupplementaryinformationpresentedwithsummaryfinancialstatements
• Otherinformationindocumentscontainingsummaryfinancialstatements• Auditorassociation
![Page 274: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/274.jpg)
274 MPVijayKumarFCA
Scope• Dealswithauditor’sresponsibilities:
• Whenundertakingengagementtoreportonsummaryfinancialstatements(SFS)
• DerivedfromFSauditedinaccordancewithSAbythatsameauditor
![Page 275: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/275.jpg)
275 MPVijayKumarFCA
Objectives
DETERMINEAPPROPRIATENESS
FORMOPINIONONSFS
EXPRESSTHEOPINIONCLEARLY
OfacceptingtheengagementtoreportonSFS
Basedonevaluationofconclusionsdrawnfromevidenceobtained
Throughwrittenreportthatalsodescribesbasisfor
thatopinion
![Page 276: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/276.jpg)
276 MPVijayKumarFCA
EngagementAcceptance• AuditorshallOrdinarily accepttheengagementtoreportonSFSonlywhen:
• AlsoengagedtoconductauditinaccordancewithSAsofthoseFSfromwhichtheseSFShavebeenderived.
![Page 277: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/277.jpg)
277 MPVijayKumarFCA
BeforeAcceptingtheEngagement
DETERMINEwhetherappliedcriteriaareacceptable
OBTAINmgt agreementthatitacknowledges&understandsitsresponsibilities
AGREEwithmgt theformofopiniontobeexpressedonSFS
Donotacceptengagementif:• criteriaareunacceptableOR• unabletoobtainmgt agreementunlessrequiredbyL&R
![Page 278: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/278.jpg)
278 MPVijayKumarFCA
SRE2400EngagementstoReviewFinancialStatements
EffectiveforreviewsoffinancialstatementsforperiodsbeginningonorafterApril1,2010.
![Page 279: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/279.jpg)
279 MPVijayKumarFCA
OverviewofSRE2400• Introduction• Objective of a Review Engagement• General Principles of a Review Engagement• Scope of a Review• Moderate Assurance• Terms of Engagement• Planning• Work Performed by Others• Documentation• Procedures and Evidence• Conclusions and Reporting• Effective Date• Appendices
![Page 280: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/280.jpg)
280 MPVijayKumarFCA
PurposeofSRE2400Establishstandards&provideguidance
ReviewofFinancialStatements
Practitioner’sprofessionalresponsibilities
Form&contentofreviewreport
Nottheauditoroftheentity
Ifauditorperformsreviewofinterimfinancialinformation,applySRE2410
![Page 281: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/281.jpg)
281 MPVijayKumarFCA
ObjectiveofaReviewEngagementEnablethepractitioner
ToState
OnbasisofProcedures
Attention
BelieveFSarenotprepared
inallmaterialrespectsinaccordancewith
applicableFRF
NEGATIVEASSURANCE
![Page 282: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/282.jpg)
282 MPVijayKumarFCA
GeneralPrinciples• ComplywithICAICodeofEthics.• ConductreviewinaccordancewiththisSRE.• Exerciseprofessionalskepticismwhile:
• Planningreview.• Performingreview.
• Obtainsufficientappropriateevidence:• Forexpressingnegativeassurance.• Primarilythroughinquiry&analyticalprocedures.
![Page 283: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/283.jpg)
283 MPVijayKumarFCA
ScopeofReview• ReferstoReviewproceduresdeemednecessaryincircumstancestoachieveobjectivesofreview.
• Proceduresshouldbedeterminedhavingregardtorequirementsof:
• ThisSRE.
• Relevantprofessionalbodies.
• Legislation®ulation.
• Termsofengagement.
• Reportingrequirements.
![Page 284: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/284.jpg)
284 MPVijayKumarFCA
TermsofEngagement• AgreeToE withtheclient:
• Engagementletter.
• Othersuitableformofcontract.
• Sendtoclientanengagementletterdocumentingkeytermsofappointment:
• Confirmspractitioner’sacceptanceofappointment.
• Avoidsmisunderstandingsreg.objectives&scope.
• Clarifiespractitioner’sresponsibility.
• Assistsinplanningthereview.
• ClarifiesFormofreporttobeissued.
![Page 285: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/285.jpg)
285 MPVijayKumarFCA
RevisedSRE2400Engagementsto
ReviewHistorical FinancialStatements
EffectiveforReviewsofFSforperiodsbeginningonorafterApril1,2016
![Page 286: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/286.jpg)
286 MPVijayKumarFCA
AttheOutset...• ThereisnoconceptualchangeinrevisedSRE2400• ContinuestoapplytopractitionerswhoareNOT statutoryauditorsofclient,iftheyundertake:
• Reviewoffullhistorical financialstatements• Reviewofinterimfinancialstatements/information
![Page 287: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/287.jpg)
287 MPVijayKumarFCA
NeedforRevision....• Makingclearthedistinguishingfeaturesofareviewengagement
• Promoteclarityamongusersaboutthenatureofreview
![Page 288: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/288.jpg)
288 MPVijayKumarFCA
EnhancedGuidance/Updations
![Page 289: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/289.jpg)
289 MPVijayKumarFCA
LimitedAssurance.....TermintroducedinrevisedSRE2400
• InlinewithconceptsofreasonablevslimitedassuranceinFrameworkforAssuranceEngagements
• Helpsbetterexplainnatureofareviewengagement
§ Applicationoflimitedproceduresvisavisafullfledgedaudit
• Normally,limitedtoinquiriesandanalyticalprocedures
![Page 290: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/290.jpg)
290 MPVijayKumarFCA
SufficientAppropriateEvidence(SAE)• Existingconcept
• Reiteratedinvariousparastohighlightthat:
• SAEisimportantforreachingbasisofconclusionandreportasenvisagedbytheStandard
• Evidencegatheringisasmuchanessentialelementofareviewengagement
• Reviewisnota“procedurebased”(or“checkbox”)engagement
![Page 291: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/291.jpg)
291 MPVijayKumarFCA
PerformingtheReviewEngagementReiterates:• Considerationandroleofprofessionaljudgmentwrt whatotherprocedurestouse
• Inadditiontoanalyticalprocedures/inquiry,incaseswheresoconsiderednecessarybythepractitioner
• Importanceofcohesionbetweenknowledgeofentity&itsenvironment,FRF&professionaljudgment
• Todesign&performprocedurestofocusonareaswherematerialmisstatementsarelikelytoarise
• Todesign&performotherprocedures,whererequired
![Page 292: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/292.jpg)
292 MPVijayKumarFCA
Reporting• ElementsbroughtinlinewithSA700.Includes:
• Introduction• Management’sResponsibility• Practitioner’sResponsibility• Descriptionofreview&itslimitations• Conclusions
• ConceptsbroughtinfromSA705&SA706:• Modificationto“conclusions”• EmphasisofMatter• OtherMatters
• MannerofReporting• Nochange,same“Negative”Reporting
• “Nothinghascometoourattention........”
![Page 293: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/293.jpg)
293 MPVijayKumarFCA
OtherRevisions• Expresslyincludednow:
• Donotacceptreviewengagementifnotsatisfiedthatreviewwouldbeappropriateinthecircumstances
• Engagementpartnerto
– possesscompetenceinassuranceskillsandtechniques,&competenceinfinancialreporting,appropriatetothecircumstances
– Takeresponsibilityforengagementteam–collectivelyhavecompetence&capabilities
![Page 294: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/294.jpg)
294 MPVijayKumarFCA
ObjectivesofthePractitioner
ObtainLIMITEDAssurance
Report&Communicate
FSarefreeofMaterialMisstatement OnFSasawhole
Inquiry AnalyticalProcedures
![Page 295: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/295.jpg)
295 MPVijayKumarFCA
SRE2410ReviewofInterimFinancialInformation
PerformedbytheIndependentAuditoroftheEntity
EffectiveforreviewsofinterimfinancialinformationforperiodsbeginningonorafterApril1,2010
![Page 296: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/296.jpg)
296 MPVijayKumarFCA
OverviewofSRE2410• Introduction• General Principles of a Review of IFI• Objective of an Engagement to Review IFI• Agreeing the Terms of the Engagement• Procedures for a Review of IFI• Evaluation of Misstatements• Management Representations• Auditor’s Responsibility for Accompanying Information• Communication• Reporting the Nature, Extent & Results of Review of IFI• Documentation• Effective date• Appendices
![Page 297: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/297.jpg)
297 MPVijayKumarFCA
InterimFinancialInformation• Financialinformation:
• Prepared&presentedinaccordancewithapplicablefinancialreportingframework.
• Compriseseitheracompleteorcondensedsetoffinancialstatements.
• Foraperiodthatisshorterthanentity’sFY.
![Page 298: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/298.jpg)
298 MPVijayKumarFCA
SREApplicationMatrix
ReviewofFinancialStatements
ReviewofInterimFinInfo
Independentauditor SRE2400 SRE2410Otherpractitioner SRE2400 SRE2400
Why separate SRE 2410 for Independent Auditors?
• For audit engagements, independent auditor would have obtainedunderstanding of entity and its environment including internal control.
• For reviewing IFI he updates this understanding through inquiry &analytical procedures.
• Other practitioner does not ordinarily have the same level of understanding.• Need for different inquiries & procedures
![Page 299: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/299.jpg)
299 MPVijayKumarFCA
GeneralPrinciplesofReviewofIFI• ComplywithethicalrequirementsapplicabletoauditofannualFSofentity.
• Implementqualitycontrolproceduresapplicabletoindividualengagement.
• Plan&performengagementwithattitudeofprofessionalskepticism.
![Page 300: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/300.jpg)
300 MPVijayKumarFCA
ObjectiveofEngagementtoReviewIFI• Enable auditor to express a conclusion whether
• On the basis of the review
• Anything has come to auditor’s attention
• That causes auditor to believe
• That IFI is not prepared in all material respectsin accordance with applicable FRF.
![Page 301: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/301.jpg)
301 MPVijayKumarFCA
AgreeingtheTermsofEngagement• Auditor&clientshouldagreeonToE.
• ToE ordinarilyrecordedinengagementletter.
• Helpsavoidsmisunderstandingswrt:• natureofengagement.• objectiveandscopeofreview.• management’sresponsibilities.• auditor’sresponsibilities.• assuranceobtained.• natureandformofreport.
![Page 302: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/302.jpg)
302 MPVijayKumarFCA
SAE3400TheExaminationofProspectiveFinancial
Information(PFI)
Effectiveinrelationtoreportsonprojections/forecastsissuedonorafterApril1,2007
![Page 303: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/303.jpg)
303 MPVijayKumarFCA
Introduction- I• Establishesstandardsonengagementstoexamineandreporton:
• PFI• examinationproceduresforbestestimateandhypotheticalassumptions
• PFIcanbeintheformof:• forecastor• projectionor• combinationofboth.
• NotapplicabletoexaminationofPFIexpressedingeneralornarrativeterms.
![Page 304: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/304.jpg)
304 MPVijayKumarFCA
Introduction- II• Obtain sufficient appropriate evidence on:
• reasonableness of management’s best-estimateassumptions.
• hypothetical assumptions are consistent withthe purposes of information.
• PFI prepared properly on basis of assumptions.
• properly presented and adequate disclosure ofall material assumptions.
• consistent with historical financial statements.
![Page 305: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/305.jpg)
305 MPVijayKumarFCA
AcceptanceofEngagement• Beforeacceptingengagementconsider:
• theintendeduseoftheinformation.
• information- generalorlimiteddistribution.
• thenatureoftheassumptions,i.e.best-estimatesorhypotheticalassumptions.
• theelementstobeincludedininformation.
• theperiodcoveredbyinformation.
• Notacceptorwithdrawfromengagementif:• Assumptionsareclearlyunrealistic.
• BelievesthatPFIwillbeinappropriateforitsintendeduse.
![Page 306: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/306.jpg)
306 MPVijayKumarFCA
KnowledgeofBusiness• Obtain sufficient level of knowledge of business toevaluate all significant assumptions:
• internal controls over the system used to prepare PFI.
• documentation supporting management’s assumptions.
• extent to which statistical, mathematical and computer-assisted techniques used.
• methods used to develop and apply assumptions.
• accuracy of PFI prepared in prior periods.
• Consider the extent to which reliance on the entity’shistorical financial information is justified.
![Page 307: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/307.jpg)
307 MPVijayKumarFCA
PeriodCovered• ConsidertheperiodoftimecoveredbyPFI:
• moreLength- AssumptionsMoreSpeculative.
• notextendbeyondthetimeforwhichmanagementhasreasonablebasisforassumptions.
• RelevantFactors:
• operatingcycle.
• degreeofreliabilityofassumptions.
• needsofuserslike,preparedinconnectionwithapplicationforloanorforissueofsecurities.
![Page 308: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/308.jpg)
308 MPVijayKumarFCA
ExaminationProcedures- IFactorsindeterminationofnature,timing,extentofexaminationprocedures:
• knowledgeobtainedduringpreviousengagements.
• management’scompetence.
• likelihoodofmaterialmisstatement.
• extenttowhichPFIisaffectedbythemanagement’sjudgment.
• sourcesofinformation.
• stabilityofentity’sbusiness.
• engagementteam’sexperience.
![Page 309: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/309.jpg)
309 MPVijayKumarFCA
ExaminationProcedures- II• Whenhypotheticalassumptionsused:
• allsignificantassumptionstakenintoconsideration.• consistentwithpurposeandrealistic.
• Focusonareassensitivetovariationandmaterial.
• Ifengagementforindividualcomponent,considerinterrelationshipofothercomponents.
• ObtainwrittenrepresentationsfromMgt.regarding:• intendeduseofPFI.• completenessofsignificantassumptions.• mgt’s acceptanceofresponsibilityforPFI.
![Page 310: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/310.jpg)
310 MPVijayKumarFCA
PresentationandDisclosure• Considerrequirementsofstatutes,regulationsandprofessionalpronouncements.
• Alsoconsiderwhether:• presentationisinformativeandnotmisleading.• accountingpoliciesandassumptionsareclearlydisclosedinnotestoPFI.
• dateofpreparationisproperlydisclosed.• basisofestablishingpointsinarangeisclearlyindicated.
• adequacyofdisclosureifanychangeintheaccountingpolicy.
![Page 311: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/311.jpg)
311 MPVijayKumarFCA
Documentation• Documentmattersimportantinprovidingevidence:
• TosupporthisreportonexaminationofPFI;and
• thatsuchexaminationwascarriedoutinaccordancewiththisSAE.
![Page 312: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/312.jpg)
312 MPVijayKumarFCA
Reporting- I• ThereportoftheAuditorshouldcontainthefollowing:
• titleandAddressee.• identificationoftheprospectivefinancialinformation.• referencetoapplicableStandardsonAuditing.• managementresponsibilities.• whenapplicable,areferencetopurposeand/orrestricteddistribution.
• statementthatexaminationproceduresincludedexamination,onatestbasis.
• statementofnegativeassurance.• opinionwhetherPFIproperlypreparedonbasisofassumptionsandpresentedinaccordancewithrelevantfinancialreportingframework.
• appropriatecaveatsconcerningachievabilityofresults.• dateofreport,PlaceofsignatureandSignature.
![Page 313: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/313.jpg)
313 MPVijayKumarFCA
Reporting- II1. Qualified/Adverse opinionorwithdrawfromengagement,if
auditorbelievesthat:
• presentationanddisclosureofthePFIisnotadequate.
2. Adverseopinionorwithdrawfromengagement,ifauditorbelievesthat:
• oneormoresignificantassumptionsdonotprovideareasonablebasisforthePFI
3. Disclaimer ofopinionorwithdrawfromengagement,if:
• examinationisaffectedbyconditionsthatprecludeapplicationofprocedure(s)considerednecessaryincircumstances.
![Page 314: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/314.jpg)
314 MPVijayKumarFCA
SAE3402AssuranceReportsonControlsat
AServiceOrganisation
Effectiveforserviceauditors’assurancereportscoveringperiodsbeginningonorafter1stApril,2011
![Page 315: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/315.jpg)
315 MPVijayKumarFCA
OverviewofSAE3402• Introduction• Objectives• Definitions• Requirements
• FrameworkforAssuranceEngagements
• Ethicalrequirements
• Management&TCWG
• Acceptance&continuance
• Assessingsuitabilityofcriteria
• Materiality
• ObtainingunderstandingofSO’ssystem
![Page 316: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/316.jpg)
316 MPVijayKumarFCA
OverviewofSAE3402(contd.)• Obtainingevidenceredescription
• Obtainingevidenceredesignofcontrols
• Obtainingevidencereoperatingeffectivenessofcontrols
• Workofinternalauditfunction
• Writtenrepresentations
• Otherinformation
• Subsequentevents
• Documentation
• PreparingSA’sassurancereport
• Othercommunicationresponsibilities
• Applicationguidance(onaboveaspects)• Appendices
![Page 317: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/317.jpg)
317 MPVijayKumarFCA
Introduction• ReportforusebyUEandUA
• OncontrolsatSO
• ProvidesaservicetoUE
• ThatserviceislikelytoberelevanttoUE’sICFR• Matterofprofessionaljudgment
![Page 318: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/318.jpg)
318 MPVijayKumarFCA
SAE3402dealsONLYwith….• Assertion-basedengagements
• Reasonableassurance
• Assuranceconclusionwordeddirectlyintermsofsubjectmatter&criteria
![Page 319: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/319.jpg)
319 MPVijayKumarFCA
ApplicabilityofSAE3402
• Appliesonlyifinrespectofsuitabledesignofcontrols,SOis:
• Responsible• Otherwisemakesanassertion
![Page 320: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/320.jpg)
320 MPVijayKumarFCA
DoesNotApplyto……….• ReportingonwhethercontrolsatSOoperatedasdescribed
• ReportingonlyoncontrolsatSOotherthanthoserelatedtoaservicerelatedtoUE’sICFR
• ReportingonUE’stransactionbalancesmaintainedbySO
• AUPreportoncontrolsatSO
![Page 321: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/321.jpg)
321 MPVijayKumarFCA
SOAuditor’sObjectivesObtainreasonableassurance
DescriptionofsystemasgivenbySO
Report
Controlobjectiveswereachieved
Throughoutspecifiedperiod
Fairlypresentsthesystem
Asdesigned&implemented
Controlsrelatedtocontrolobjectives
Suitablydesigned
Controlsoperatedeffectively
Toprovidereasonableassurance
![Page 322: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/322.jpg)
322 MPVijayKumarFCA
SAE3420AssuranceEngagementstoReportontheCompilationofPro
FormaFinancialInformationIncludedinaProspectus
EffectiveforassurancereportsdatedonorafterApril1,2016
![Page 323: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/323.jpg)
323 MPVijayKumarFCA
ScopeofSAE3420• Reasonable assurance engagements to report of Proforma financial information (PFI)
• As prepared by a responsible party (Client)
• To be included in a prospectus
• Applies where such reporting is:
• Required by securities laws
• Generally accepted practice
![Page 324: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/324.jpg)
324 MPVijayKumarFCA
Whatis“PFI”?
• Financialinformationshowntogetherwithadjustmentstoillustratetheimpactofanevent/transactiononunadjustedfinancialinformation
• Asiftheeventhadoccurredorthetransactionhadbeenundertakenatanearlierdateselectedforpurposesoftheillustration.
![Page 325: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/325.jpg)
325 MPVijayKumarFCA
Whatis“ApplicableCriteria”
• CriteriausedbyclientwhencompilingPFI
• Maybeestablishedbylaw/regulation,etc
• Ifnotsoestablished,developedbyclient
• PFItobeaccompaniedbyadequatedisclosuresregardingcriteria
![Page 326: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/326.jpg)
326 MPVijayKumarFCA
Whatis“ProFormaAdjustments”?
AdjustmentstoUnadjustedFinancialInfo
Illustratetheimpactofasignificanteventor
transaction
NecessaryforPFItobecompiledonbasisconsistentwithapplicableFRF
![Page 327: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/327.jpg)
327 MPVijayKumarFCA
ResponsibilityforPFI
Preparation/Compilation
• Client
Reportingthereon
• Practitioner
![Page 328: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/328.jpg)
328 MPVijayKumarFCA
PurposeofPFIincludedinProspectus• Illustrateimpactofsignificantevent/transactiononunadjustedinformation
• PFIdoesnotrepresententity’sactualfinancialposition,financialperformanceorcashflows
![Page 329: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/329.jpg)
329 MPVijayKumarFCA
PFICompilationProcessofClient
Presentsproforma infowithaccompanyingdisclosures
Makesproforma adjustments
Extractsunadjustedfinancialinfofromsource
Identifiessourceofunadjustedinfotobeused
![Page 330: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/330.jpg)
330 MPVijayKumarFCA
NatureofAssuranceExpressedbyPractitioner
ReasonableAssuranceunderSAE3420
AssesswhethercriteriausedincompilingPFIprovidesreasonablebasisforpresentingsignificanteffectsdirectlyattributabletoevent
Obtainsufficientappropriateevidence:• Relatedproformaadjustmentsgiveappropriateeffecttothosecriteria
• Resultingproformacolumnreflectsproperapplicationofthoseadjustmentstounadjustedfinancialinfo
Practitioner does not:• Update/reissueanyearlierreports/opinionsonanyhistoricalfinancialinfousedincompilingPFI
• Perform an audit or review of the financial info used in compiling PFI
![Page 331: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/331.jpg)
331 MPVijayKumarFCA
SRS4400EngagementstoPerformAgreed- uponProcedures
regardingFinancialInformation
EffectiveforallagreeduponproceduresengagementsbeginningonorafterApril1,2004
![Page 332: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/332.jpg)
332 MPVijayKumarFCA
Introduction• Establishesstandardsonauditor’sprofessionalresponsibilitieswithregardto:
• performAgreed-uponProcedures(AUP)onFinancialInformation(FI).
• form&ContentofreportofAUPengagements.
• Reportoffactualfindingsbasedon:
• specifiedproceduresperformedonspecifiedsubjectmatterofspecialelements,accountsoritemsofFS.
![Page 333: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/333.jpg)
333 MPVijayKumarFCA
Objectives
• Tocarryoutproceduresofauditnaturetowhichtheauditor,theentityandanyappropriatethirdpartieshaveagreed;and
• Toreportonfactualfindings.
![Page 334: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/334.jpg)
334 MPVijayKumarFCA
GeneralPrinciples• ComplywithCodeofEthicsissuedbyICAI.
• Wheretheauditorisnotindependent:• astatementtothateffectshouldbemadeinreportoffactualfindings.
• ConductAUPengagementinaccordancewith:• thisSRS;and• termsofengagement.
![Page 335: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/335.jpg)
335 MPVijayKumarFCA
DefiningTermsofEngagement-I• Ensurethatthereisclearunderstandingofagreedprocedures,conditionsofengagementwith:
• representativesofentity.• otherspecifiedpartieswhowillreceivecopiesofreport.
• Mattersagreedincludes:• natureofengagement.• statedpurposeforengagement.• identificationofFItowhichAUPapplied.• nature,timingandextentofspecificprocedurestobeapplied.
• limitationsondistributionofreport.
![Page 336: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/336.jpg)
336 MPVijayKumarFCA
DefiningTermsofEngagement-II
• Sendengagementletter:• listingofprocedurestobeperformed.• restrictionsondistributionofreport.
• IfAUPbetweenregulator/industryrepresentatives,thenauditormaynotbeabletodiscussprocedureswithallpartieswhowillreceivereport.
![Page 337: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/337.jpg)
337 MPVijayKumarFCA
PlanningandDocumentation
• Plantheworksothataneffectiveengagementwillbeperformed.
• Documentmatterswhichareimportantinprovidingevidence:
• tosupportthereportoffactualfindings.
• thatengagementwascarriedoutinaccordancewiththisSRSandtermsofengagement.
![Page 338: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/338.jpg)
338 MPVijayKumarFCA
ProceduresandEvidence
• PerformAUPandusetheevidenceobtainedasbasisforreportoffactualfindings.
• Proceduresappliedinclude:• Inquiryandanalysis
• Re-computation,comparisonandotherclericalaccuracychecks
• Observation
• Inspection
• obtainingconfirmations
![Page 339: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/339.jpg)
339 MPVijayKumarFCA
Reporting- I
• Describethepurposeandagreed-uponproceduresofengagement.
• Reportoffactualfindingsshouldcontain:• TitleandAddressee.• IdentificationofspecificFI/non-FItowhichAUPhavebeenapplied.
• Statementthatproceduresperformedwerethoseagreeduponwithrecipient.
• StatementthatengagementperformedinaccordancewithStandardsapplicabletoAUPengagements.
![Page 340: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/340.jpg)
340 MPVijayKumarFCA
Reporting- II• IdentificationofthepurposeofAUP.• ListingofspecificAUPperformed.• Descriptionoffactualfindingsincludingsufficientdetailsoferrorsandexceptionsfound.
• Statementthatproceduresperformeddonotconstituteeitheranauditorareviewandassuch,noassuranceisexpressed.
• Statementthathadtheauditorperformedadditionalprocedures,auditorreview,othermattersmighthavecometolight.
• Statementthatreportisrestrictedtospecifiedparties.• Statementthatreportdoesnotextendtoentity’sFStakenasawhole.• Dateofreport.• Placeofsignature.• Auditor’ssignature
![Page 341: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/341.jpg)
341 MPVijayKumarFCA
REVISEDSRS4410COMPILATIONENGAGEMENTS
EffectiveforcompilationengagementsundertakenafterMarch31,2016
![Page 342: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/342.jpg)
342 MPVijayKumarFCA
OverviewofSRS4410(R)• Introduction• Objective• Definitions• Requirements&Application
• ConductofcompilationengagementasperSRS4410• Ethicalrequirements• Professionaljudgement• Engagementlevelqualitycontrol• Engagementacceptance&continuance• CommunicationwithTCWGandmanagement• Performingtheengagement• Documentation• Practitioner’sreport
![Page 343: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/343.jpg)
343 MPVijayKumarFCA
COMPILATIONENGAGEMENT
REPORTSasrequiredbythisSRS
InaccordancewithanAPPLICABLEfinancialreportingFramework(FRF)
ASSISTmanagementinpreparation&presentationoffinancialinformationoftheentity
PractitionerappliesACCOUNTING&FINANCIALREPORTING Expertise
![Page 344: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/344.jpg)
344 MPVijayKumarFCA
BasicPremiseofCompilationEngagements
Notanassuranceengagement• norequirementtoverifyaccuracy&completenessofinfoprovidedbymanagement
• norequirementtogatherevidencetoexpressauditopinion/reviewconclusion
Managementretainsresponsibilityfor• financialinfo• basisonwhichitisprepared&presented
SRS4410doesnot:• imposeresponsibilityonmgt/TCWG
• overrideL&Rwrtresponsibilityofmgt/TCWG
![Page 345: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/345.jpg)
345 MPVijayKumarFCA
ValueofCompilationEngagement
Compilationperformed
inaccordancewithSRS4410
Applicationofexpertise
inaccounting&financialreporting
CompliancewithStandards• includesethicalstandards
Clearcommunicationofnature&extentof
practitioner’sinvolvement
![Page 346: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/346.jpg)
346 MPVijayKumarFCA
ApplyingSRS4410– Conditions
Practitionerengagedtocompile
HISTORICALfinancialinformation
ProvideaREPORTforengagementinaccordancewithSRS
4410
![Page 347: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/347.jpg)
347 MPVijayKumarFCA
Iflaws&RegulationsdonotmandateSRS4410– Considerations
FinancialinformationrequiredbyL&R?• Requiredtobepubliclyfiled?
Externalpartieslikelytoassociatepractitioner’snamewithfinancialinfo?• Riskthatlevelofassociationwillbemisunderstood
![Page 348: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/348.jpg)
348 MPVijayKumarFCA
CompliancewithSQC1• Appliestofirmwrt itscompilationengagements
• BUT,deficiencyinfirm’sQCsystemdoesnotnecessarilymean:
• Engagementnotcarriedoutinaccordancewithprofessionalstandardsandlegal®ulatoryrequirements
OR
• Practitioner’sreportwasnotappropriate
![Page 349: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/349.jpg)
349 MPVijayKumarFCA
Practitioner’sGuidetoAuditof
SmallEntities
PLEASE REFER TO ICAI PUBLICATION
![Page 350: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/350.jpg)
350 MPVijayKumarFCA\
Personal1slide
![Page 351: Refresher : Standards on Auditingicaiclt.org/public/files/15127153832.pdf · §4000–4699: StandardsonRelatedServices(SRSs) 7 M P Vijay Kumar FCA S.No Reference Title of the standard](https://reader034.vdocuments.site/reader034/viewer/2022042109/5e8944af95792c63d903f129/html5/thumbnails/351.jpg)
351 MPVijayKumarFCA
Mytakeonwindsofchange?• Datais connectedfromthesourcetotheledgerviacloud-basedapplications. Accounting
is morphingintowhateconomists call "interactionjobs", wheretechnicalknowledgeis assumedand highervalueisappliedtoaperson'sabilitytointeractwithinternalandexternal clients,identifyproblems,comeupwithalternativesolutions,determinewhichareaffordableatthis pointintime andcommunicateandinfluenceto deliver an outcome.
• Thesuccessfulaccountantsofthefuturewillbestrongcommunicators,possessgreaterITskillscombinedwithstrategicvisionandtheywillbedevotedtoongoingprofessionaldevelopment.Globalisation isthefutureofaccountingasmoreandmorebusinessesrequirereal-timemanufacturingandinformation,mobilemarketingandonlinetools,includingthecloud,toexpandtheircustomerbaseinternationally.Thusaccounting,auditingandfinanceprofessionalswithknowledgeofinternationalstandardsandregulationswillthrive.
• ICAIisgearedtothisrealityand30overseaschaptersofICAIisatestimonyapartfromembracingInternationalaccountingandassurancestandards. IndianCharteredAccountants,thankstotherigoroustrainingandenviableforwardlookingcurriculum,possessrightinsightsandforesight toovercomechallengesandmakethebestuseoftheopportunities.