![]() Some of the important GNs every professional must have (as relevant assignments are commonly undertaken by most of the professional) are as under:Ī) GN on Bank auditb) GN of CARO reportingc) GN on Consolidation of financial statementsd) GN on special purpose reports (Certificates): In my opinion, it is imperative to have this as certificates are commonly issued by all the professionals. These are specific to the subject matter. This standard spells out the professional care to be exercised while conducting such assignments.īesides SAs, ICAI has also issued guidance notes that help professionals to evidence the proper conduct of audit. Compilation engagement SRS 4410 Professionals are engaged to help the management to compile and put the data in order.These are specific checks and involve only factual reporting without any assurance Agreed upon procedures (AUP) SRS 4400 – Sometimes management requires auditor to perform the audit checks to ensure the correctness of the statements prepared by them.Assurance on financial information provided in prospectus (SAE 3420).If the assignment is conducted by another firm, this SAE is applied. He may conduct the assurance himself or may require other professional firm to provide that assurance. During the course of audit, auditor is required to ensure that the service provider has enough controls to ensure the correct information for audit conclusion. Assurance report on controls at service organisation (SAE 3402): This is a counterpart of SA 402.Prospective financial information can be in the form of a forecast, a projection, or a combination of both. It is highly subjective in nature and its preparation requires the exercise of considerable judgment. Examination of prospective financial information (SAE 3400): “Prospective financial information” means financial information based on assumptions about events that may occur in the future and possible actions by an entity.There are three specific subject matter SAEs There are certain specific assignments undertaken by a chartered accountant of assurance nature other than audit or review. Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (SAEs) # Review of historical financial statements SRE 2400Review of interim financial statement by independent auditor IV. ![]() ![]() These standards need to be applied during review. Standards on Review engagements (SREs) #Īn auditor undertakes review assignments. ![]() The standards are categorised as under : III. These are applicable to any audit engagement. Monitoring – This refers to monitoring the developments in SAs & other professional materials to ensure the quality standards. Integrity, confidentiality & professional behavior are the key ingredients.Acceptance and continuance of client relationships – An auditor is required to document the significant issues, consultations, conclusions and the basis for accepting/rejecting and continuation with the client.Human Resources – Engaging of right manpower is crucial in establishing that the audit performance is as per professional standards to enable the firm or engagement partner to issue reportsEngagement Performance – This requires evidencing briefing to team members, review of audit by assistants, consultations obtained during the course of audit, difference of opinion, if any and how is that resolved. Leadership responsibilities for quality within the firm: The head of the organisation is responsible for development quality practices & promote the culture of audit quality.Ethical Requirements: Independence to undertake audit is required to be established. This standard necessitates every firm or an individual who undertake the audit to have documented policies on: This standard is more on the audit quality philosophy. There is only one standard in this category. The entire structure of SAs is divided as under: I. Let us first understand the overall structure of the auditing standards. Such remarks will compel the signatory to go to the depth of certain standards which are required to be applied in the relevant situation. This will inculcate the necessary discipline among the staff members and even the signatories of the audit statements. In order to facilitate easy application of these standards, every audit file must contain the list of these SAs and remarks of signatory against each whether the standard is applied. Finally the term “Audit” means the auditor has applied certain approved procedure to arrive at the conclusion. While it is true that the degree of depth in application of SAs to various sizes of clients will vary materially, it is necessary that the auditor must have on its records an evidence that he has carried the audit as per the applicable SAs.
0 Comments
Leave a Reply. |