SA 200 "OVERALL OBJECTIVES OF THE INDEPENDENT

AUDITOR AND CONDUCT OF THE AUDIT IN

ACCORDANCE WITH SAS

1.1 Overall Objectives of the Auditor

As per SA-200 "Overall Objectives of the Independent Auditor", in conducting an audit of
financial statements, the overall objectives of the auditor are:
a) To obtain reasonable assurance about whether the F. S. as a whole are free from
material misstatement, whether due to fraud or error, thereby enabling the auditor to
express an opinion on whether the F.S. are prepared, in all material respects, in
accordance with an applicable FRF, and
b) To report on the F.S. and communicate as required by the SAs, in accordance with
the auditor’s findings.
In all cases when reasonable assurance cannot be obtained and a qualified opinion
in the auditor’s report is insufficient, the SAs require that the auditor disclaim an
opinion or withdraw from the engagement.

1.2 AUDITOR REQUIREMENT/RESPONSIBILITIES OF THE AUDITOR

Ethical Requirements Professional Professional Sufficient Appropriate

Relating to an Audit of Audit Risk
Judgment Audit Evidence
F.S. Skepticism

1. Compliance 1. Integrity;
1. Questioning mind,
2. Objectivity;
2. Objectives 2. being alert to
3. Complying with 3. Professional onditions,may indicate
competence and due
relevant Requirements possible misstatement due
care;
4. Failure to Achieve an to error or fraud
Objective 4. Confidentiality; and 3. Reduces risk of
Professional behaviour.
- Overlooking unusual
circumstances.
- Over generalising when
drawing conclusions from
audit observations.
- Using inappropriate
assumptions in determining
N, T, E of audit procedures
1. Application of relevant
To obtain reasonable
training, knowledge and risk that the auditor
assurance
experiencein planning and expresses an
performing an audit of 1. Reasonable Assurance: A inappropriate audit
financial statements high, but not absolute, opinion
level of assurance.
2. exercised throughout
the audit 2. Sufficient Appropriate
Audit Evidence: Sufficiency
3. important when refers to quantum and
deciding about: Appropriateness refers to
- Materiality & audit risk. quality.
- NTE of audit procedures.
- Evaluating sufficiency & -
appropriateness of audit
procedures.
- Evaluating management
judgment in applying
applicable FRF.
- Drawing conclusions
based on audit evidence.

This chart discussion & Question Answer video available

on YouTube - CA Kapil Goyal Audit Discussion