AUDITING STANDARDS IN INDIA

ANNEXURE I

Comparative Position of International Engagement Standards, issued by the International Auditing and Assurance Standard Board of the International Federation of Accountants vis--vis. Auditing and Assurance Standards (AASs) issued by ICAI (As on May 25, 2007)
Sl. No 01. ISQC No. 1 Standards on Quality control AAS Title of the ISQC No. Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements Standards on Auditing AAS Title of the ISA No. Objective and General Principles Governing 01 an Audit of Financial Statements 02 Title of the AAS The Draft of SQC 1 is under consideration of the Council.

ISA No. 02. 200

AAS/ Guidance Note Basic Principles Governing an Audit Objective and Scope of the Audit of Financial Statements. Terms of Audit Engagements Quality Control for Audit Work (Documentation The Board has already undertaken the revision of AAS 3). The Auditors Responsibility to Consider Fraud and Error in an Audit of Financial Statements Consideration of Laws and Regulations in an Audit of Financial Statements Communications of Audit Matters with Those Charged with Governance Audit Planning Knowledge of the Business The Exposure Draft of the proposed AAS is under reconsideration of the Board Audit Materiality The Exposure Draft of the proposed AAS is under reconsideration of the Board

03. 04. 05. 06. 07. 08. 09.

210 220 230 240 250 260 300 310 315 320 330

Terms of Audit Engagements Quality Control for Audits of Historical Financial Information Audit Documentation

26 17 03

The Auditors Responsibility to Consider 04 Fraud and Error in an Audit of Financial Statements Consideration of Laws and Regulations in 21 an Audit of Financial Statements Communications of Audit Matters with 27 Those Charged with Governance Planning an Audit of Financial Statements 08 Knowledge of the Business 20 (withdrawn pursuant to issuance of ISA 315 and 330)

10. 11. 12.

Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
Audit Materiality

The Auditors Procedures In Response to Assessed Risks

13

to Assessed Risks
400 401 Risk Assessments and Internal Control (withdrawn pursuant to issuance of ISA 315 and 330) Auditing in a Computer Information Systems Environment (withdrawn pursuant to issuance of ISA 315 and 330) Audit Considerations Relating to Entities Using Service Organizations Audit Evidence Audit Evidence Additional Considerations for Specific Items External Confirmations Initial Engagements- Opening Balances Analytical Procedures Audit Sampling and Other Means of Testing Audit of Accounting Estimates Auditing Fair Value Measurements and Disclosures Related Parties Subsequent Events Going Concern Management Representations Using the Work of Another Auditor Considering the Work of Internal Audit 06

AAS is under reconsideration of the Board Risk Assessments and Internal Control

29

Auditing in Information Environment.

Computer Systems

13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33.

402 500 501 505 510 520 530 540 545 550 560 570 580 600 610 620 700 701 710 720 800

24 05 34

30
22 14 15 18

Audit Considerations Relating to Entities Using Service Organisations Audit Evidence Audit Evidence Additional Considerations for Specific Items

External Confirmations

Initial Engagements- Opening Balances Analytical Procedures Audit Sampling Audit of Accounting Estimates The Board has constituted a study group for the project.. Related Parties Subsequent Events The Board has already undertaken the revision of AAS 19. Going Concern Representations by Management Using the Work of Another Auditor Relying Upon the Work of Internal Auditor Using the Work of an Expert

23 19 16 11 10 07

Using the Work of an Expert 09 The Independent Auditors Report on a 28 Complete Set of General Purpose Financial Statements Modifications to the Independent Auditors Report Comparatives Other Information in Documents Containing Audited Financial Statements The Auditors Report on Special Purpose Audit Engagements 25

The Auditors Report on Financial Statements

The Board has already undertaken the revision of AAS 28. Comparatives The Board has decided to come out with the Guidance Note corresponding to ISA 720 initially. Guidance Note on Audit Reports and Certificates for Special Purposes The Board has already undertaken a project to prepare an AAS corresponding to ISA 800.

34. 35.

ISRE No. 2400 2410

36. 37.

ISAE No. 3000 3400 ISRS No. 4400 4410

38. 39.

Standards on Review Engagements AAS Title of the ISRE Title of the AAS No. Engagements to Review Financial 33 Engagements to Review Financial Statements Statements Review of Interim Financial Information The Board has already undertaken a Performed by the Independent Auditor of project to prepare an AAS the Entity corresponding to ISRE 2410. Standards on Assurance Engagements AAS Title of the ISAE Title of the AAS No. Assurance Engagements Other than Audits The Board is likely to consider the or Reviews of Historical Financial need to issue the AAS Information corresponding to ISAE 3000 shortly. The Examination of Prospective Financial 35 The Examination of Prospective Information Financial Information Standards on Related Services Engagements AAS Title of the ISRS Title of the AAS No. Engagements to Perform Agreed-upon 32 Engagements to Perform AgreedProcedures Regarding Financial Information upon Procedures Regarding Financial Information Engagements to Compile Financial 31 Engagements to Compile Financial Information Information

(A)

Number of International Engagement Standards issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants Total

39

39

(B)

Auditing and Assurance Standards (AASs) and other authoritative documents issued by the Institute of Chartered Accountants (i) Number of Indian auditing standards issued by ICAI {Standards issued are 35 but since two Standards cover one ISA, therefore, one Standard is reduced from the total Standards issued, i.e., 35-1} 34

(ii) 1.

ISA not relevant to the Indian legal environment ISA 720, Other Information in Documents

02

Containing Audited Financial Statements 2. ISA 545, Auditing Fair Value Measurements and Disclosures

(iii)

International Standards corresponding to which the drafts of Auditing Standards are under consideration of the Council 1. ISQC 1, Quality control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements

01

(iv)

International Standards corresponding to which the drafts of Auditing Standards are under consideration of the AASB 1. ISA 315, Understanding the Entity and Its

02

Environment and Assessing the Risks of Material Misstatement 2. ISA 330, The Auditors Procedures in Response to Risks of Material Misstatements

(v)

International Standards yet to be considered by the Auditing and Assurance Standards Board of ICAI 1. ISA 701, Modifications to the Independent Auditors Report 2. ISA 800, The Auditors Report on Special Purpose Audit Engagements 3. ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity 4. ISAE 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information

04

(vi)

AAS corresponding to which no International Standard has been issued 1. AAS 12, Responsibility of Joint Auditors

(01)

(vii)

AASs issued corresponding to ISAs withdrawn by IAASB 1. 2. 3. AAS 06, Risk Assessment and Internal Control AAS 20, Knowledge of the Business AAS 29, Auditing in a Computer Information Systems Environment Total

(03)

39