Compliance with Technical Standards Prepared for the One Day Training Programme for peer reviewers at the Baroda Branch of WIRC of ICAI Technical session

Auditing, review and other standards (Formerly Known as AAS) Introduction Standards on Quality Control (SQC) General Principles and Responsibilities Audit Evidence Risk Assessment and Response to Assessed Risks Specialised Areas Using Work of Others Audit Conclusions and Reporting Auditing, review and other standards (Formerly Known as AAS)

Introduction Revised standards facilitates understanding of the pronouncements issued by AASB under the authority of the Council This furthers ICAI’s commitment to the goal of providing high quality accountancy services, acceptable world wide Develops and promulgates technical standards and other professional literature ICAI is a founder member of IFAC Membership obligation requires convergence with International Standards issued by IAASB of IFAC

Introduction “AASs” concept done away with; “Engagement Standards” concept introduced. Engagement Standards Stds. on Auditing (SAs) Stds. on Review Engagements (SREs) Stds. on Related Services (SRSs) Stds. on Assurance Engagements (SAEs) Standards on Quality Control (SQCs)

Auditing, review and other standards (Formerly Known as AAS) Introduction Standards on Quality Control (SQC) General Principles and Responsibilities Audit Evidence Risk Assessment and Response to Assessed Risks Specialised Areas Using Work of Others Audit Conclusions and Reporting Auditing, review and other standards (Formerly Known as AAS)

Standards on Quality Control (SQC) Definitions Engagement Partner Engagement Quality Control Reviewer Engagement Team Reasonable Assurance Leadership responsibilities for quality within the Firm Ethical Requirements Acceptance and continuance of client relationship & specific engagement Human Resources Engagement Performance Monitoring Documentation

Auditing, review and other standards (Formerly Known as AAS) Introduction Standards on Quality Control (SQC) General Principles and Responsibilities Audit Evidence Risk Assessment and Response to Assessed Risks Specialised Areas Using Work of Others Audit Conclusions and Reporting Auditing, review and other standards (Formerly Known as AAS)

General Principles and Responsibility SA 200: Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing Definitions Applicable Financial Reporting Audit Evidence Audit Risk Misstatement Professional Judgement Professional skepticism Complying with the SAs relevant to the audit

General Principles and Responsibility SA 210: Agreeing the Terms of Audit Engagements Agreed terms of the audit engagement Objective and scope of the audit Responsibilities of the auditor Responsibilities of the management Identification of applicable financial reporting framework Reference to the form and contents of any reports

General Principles and Responsibility SA 250: Consideration of Laws and Regulations in an Audit of Financial Statements Non-compliance with Laws and Regulations result in fines, litigation or other consequences that may have a material adverse effect on the Financial Statements.

Auditing, review and other standards (Formerly Known as AAS) Introduction Standards on Quality Control (SQC) General Principles and Responsibilities Audit Evidence Risk Assessment and Response to Assessed Risks Specialised Areas Using Work of Others Audit Conclusions and Reporting Auditing, review and other standards (Formerly Known as AAS)

Audit Evidence SA 501: Audit Evidence – Specific Consideration for Selected Items SA 505: External Confirmations SA 510: Initial Audit Engagements – Opening Balances SA 520: Analytical Procedures SA 530: Audit Sampling SA 540: Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures SA 550: Related Parties SA 560: Subsequent Events SA 570 (R): Going Concern <Effective for audits of financial statements for periods beginning on or after April 1, 2017.> SA 580: Written Representation

Auditing, review and other standards (Formerly Known as AAS) Introduction Standards on Quality Control (SQC) General Principles and Responsibilities Audit Evidence Risk Assessment and Response to Assessed Risks Specialised Areas Using Work of Others Audit Conclusions and Reporting Auditing, review and other standards (Formerly Known as AAS)

Risk Assessment and Response to Assessed Risks SA 300: Planning an Audit of Financial Statements SA 315: Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment SA 320: Materiality in Planning and Performing an Audit SA 330: The Auditor’s Responses to Assessed Risks SA 402: Audit Considerations Relating to an Entity Using a Service Organisation SA 450: Evaluation of Misstatements Identified During the Audit

Auditing, review and other standards (Formerly Known as AAS) Introduction Standards on Quality Control (SQC) General Principles and Responsibilities Audit Evidence Risk Assessment and Response to Assessed Risks Specialised Areas Using Work of Others Audit Conclusions and Reporting Auditing, review and other standards (Formerly Known as AAS)

Specialised Areas Review Engagements SRE 2400 (R): Engagements to Review Financial Statements <Effective for reviews of financial statements for periods beginning on or after April 1, 2016.> SRE 2410: Review of Interim Financial Information Related Services SRS 4400: Engagements to Perform Agreed-upon Procedures (AUP) Regarding Financial Information SRS 4410 (R): Compilation Engagements <(Effective for compilation engagements undertaken after March 31, 2016.> Other Specialised Areas SA 800: Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks SA 805: Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement SA 810: Engagements to Report on Summary Financial Statements

Auditing, review and other standards (Formerly Known as AAS) Introduction Standards on Quality Control (SQC) General Principles and Responsibilities Audit Evidence Risk Assessment and Response to Assessed Risks Specialised Areas Using Work of Others Audit Conclusions and Reporting Auditing, review and other standards (Formerly Known as AAS)

Using Work of Others SA 600: Using the Work of Another Auditor SA 610 (R): Using The Work of Internal Auditors <Effective for audits of financial statements for periods beginning on or after April 01, 2016.> SA 620: Using the Work of an Auditor’s Expert

Auditing, review and other standards (Formerly Known as AAS) Introduction Standards on Quality Control (SQC) General Principles and Responsibilities Audit Evidence Risk Assessment and Response to Assessed Risks Specialised Areas Using Work of Others Audit Conclusions and Reporting Auditing, review and other standards (Formerly Known as AAS)

Audit Conclusions and Reporting SA 700 (R): Forming an Opinion and Reporting on Financial Statements SA 705 (R): Modifications to the Opinion in the Independent Auditor’s Report SA 706 (R): Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report SA 710: Comparative Information—Corresponding Figures and Comparative Financial Statements SA 720: The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements <Effective for audits of financial statements for periods beginning on or after April 1, 2017.>

Q&A

Thank you! Prepared for the One Day Training Programme for peer reviewers at the Baroda Branch of WIRC of ICAI Technical session