6/16/2019 Standards on Auditing

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Home (/) / Accounts and Audit (/s/accounting-and-auditing) / Standards on Auditing

Standards on Auditing
Updated on May 23, 2019 - 09:23:59 PM

To ensure that information provided in the financial statements are of high quality and are acceptable worldwide
the Auditing and Assurance Standards board under the council of Institute of Chartered Accountants (ICAI) have
formulated few Standards. These are in line with the International Standards issued by the International Auditing
and Assurance Board (IAASB).

Standards issued by the AASB include :

Standards of Quality Control (SQCs) For all the services under Engagement Standards. These standards
are applicable to all auditing firms which perform audits and reviews of historical financial information
including assurances and related service engagements.
Standards on Auditing (SAs) For auditing historical financial information. These apply whenever any
independent Audit is carried out.

In simpler words, whenever an independent examination of financial information is carried on for ANY entity
whether the business motive is t make the profit or not, whether the size of the entity is big or small or even if the

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entity has any legal form (unless any lays specifies something else) the SAs will be applicable

All SAs are interlinked and have to apply in unity. The number given to SA is similar to the numbering system
followed for International Standards on Auditing formulated by IAASB.


Standards on Review Engagements (SREs) for reviewing historical financial information
Standards on Assurance Engagements (SAEs) for assurance engagements other than the audits and
reviews of financial information
Standards on Related Services (SRSs) for all engagements about the application of agreed procedures to
information, compilation engagements, and other related services engagements

The major standards are listed here below:

Standards on Quality Control (SQCs)

SQC 1 (https://cleartax.in/s/sqc-1-standard-on- Quality Control for Firms that Perform Audit and Reviews
quality-control/) of Historical Financial Information, and other Assurance
and Related Services Engagements

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6/16/2019 Standards on Auditing

Standards on Auditing (SAs)

SA 200 (https://cleartax.in/s/sa-200-objectives-of- Overall Objectives of the Independent Auditor and the

independent-audit-conduct-of-audit/) Conduct of an Audit in Accordance with Standards on
Auditing

SA 210 (https://cleartax.in/s/sa-210-agreeing-audit- Agreeing the Terms of Audit Engagements

engagement-terms/)

SA 220 Quality Control for an Audit of Financial Statements

SA 230 Audit Documentation

SA 240 (https://cleartax.in/s/standard-on-auditing- The Auditor’s Responsibilities Relating to Fraud in an

sa-240-the-auditors-responsibility-relating-to-fraud- Audit of Financial Statements
in-an-audit-of-financial-statements/)

SA 250 Consideration of Laws and Regulations in an Audit of

Financial Statements

SA 260 Communication with Those Charged with Governance

Revised SA 260 Communication with Those Charged with Governance

SA 265 Communicating Deficiencies in Internal Control to Those

Charged with Governance and Management

SA 299 Responsibility of Joint Auditors

Revised SA 299 Joint Audit of Financial Statements

SA 300 (https://cleartax.in/s/sa-300-planning- Planning an Audit of Financial Statements

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financial-statements-audit/)

SA 315 (https://cleartax.in/s/sa-315-risk-of-material- Identifying and Assessing the Risks of Material

misstatement/) Misstatement Through Understanding the Entity and Its 

Environment

SA 320 Materiality in Planning and Performing an Audit

SA 330 (https://cleartax.in/s/sa-330-auditors- The Auditor’s Responses to Assessed Risks

responses-to-assessed-risk/)

SA 402 Audit Considerations Relating to an Entity Using a

Service Organisation

SA 450 (https://cleartax.in/s/sa-450-evaluation- Evaluation of Misstatements Identified During the Audit

misstatement-identified/)

SA 500 Audit Evidence

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6/16/2019 Standards on Auditing

SA 501 Audit Evidence-Specific Considerations 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 Going Concern

Revised SA 570 Going Concern

SA 580 Written Representations

SA 600 (https://cleartax.in/s/sa-600-using-the-work- Using the Work of Another Auditor

of-another-auditor/)

SA 610 Using the Work of Internal Auditors

Revised SA 610 (https://cleartax.in/s/sa-610-using- Using the Work of Internal Auditors

the-work-of-internal-auditors/)

Feedback
SA 620 (https://cleartax.in/s/sa-620-using-the-work- Using the Work of an Auditor’s Expert
of-an-auditors-expert/)

SA 700 Forming an Opinion and Reporting on Financial



Statements

Revised SA 700 (https://cleartax.in/s/sa-700- Forming an Opinion and Reporting on Financial

forming-an-opinion-and-reporting-on-financial- Statements
statements/)

SA 701 (https://cleartax.in/s/sa-701- Communicating Key Audit Matters in the Independent

communicating-key-audit-matters/) Auditor’s Report

SA 705 Modifications to the Opinion in the Independent Auditor’s

Report

Revised SA 705 Modifications to the Opinion in the Independent Auditor’s

Report

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6/16/2019 Standards on Auditing

SA 706 Emphasis of Matter Paragraphs and Other Matter

Paragraphs in the Independent Auditor’s Report

Revised SA 706 Emphasis of Matter Paragraphs and Other Matter

Paragraphs in the Independent Auditor’s Report

SA 710 (https://cleartax.in/s/sa-710-comparative- Comparative Information—Corresponding Figures and

information-corresponding-figures-and- Comparative Financial Statements
comparative-financial-statements/)

SA 720 The Auditor’s Responsibility in Relation to Other

Information in Documents Containing Audited Financial
Statements

Revised SA 720 The Auditor’s Responsibilities Relating to Other

Information

SA 800 Special Considerations-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

Standards on Review Engagements (SREs)

SRE 2400 Engagements to Review Financial Statements

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SRE 2400 (Revised) (https://cleartax.in/s/sre-2400- Engagements to Review Historical Financial Statements
engagements-to-review-financial-statements/)

SRE 2410 (https://cleartax.in/s/sre-2410-review-of- Review of Interim Financial Information Performed by the


interim-financial-information-performed-by-the- Independent Auditor of the Entity
independent-auditor-of-the-entity/)

Standards on Assurance Engagements (SAEs)

SAE 3400 (https://cleartax.in/s/sae-3400-the- The Examination of Prospective Financial Information

examination-of-prospective-financial-information/)

SAE 3402 (https://cleartax.in/s/sae-3402- Assurance Reports on Controls At a Service

assurance-reports-on-controls-at-service- Organisation
organisation/)

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6/16/2019 Standards on Auditing

SAE 3420 (https://cleartax.in/s/sae-3420- Assurance Engagements to Report on the Compilation

assurance-engagement-to-report-compliance-of- of Pro Forma Financial Information Included in a
financial-information-in-prospectus/) Prospectus

Standards on Related Services (SRSs)

SRS 4400 (https://cleartax.in/s/srs-4400- Engagements to Perform Agreed-upon Procedures

engagement-to-perform-procedures/) Regarding Financial Information

SRS 4410 Engagements to Compile Financial Information

SRS 4410 (Revised) (https://cleartax.in/s/srs-4410- Compilation Engagements

compilation-engagements/)

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All Articles
1. Audit Report – Basics, Format and Content (/s/audit-report/)
Opinions issued by an auditor in an audit report are Unmodified Opinion (also called Unqualified report),
Modified Opinion (also called Qualified report)

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2. Statutory Audit of Banks (/s/statutory-audit-of-banks/)
statutory audit of banks includes quantification of advances, deposits, interest income & expenses through
verification of Cash & Loan Accounts, tax item
3. Company Auditor’s Report Order (CARO), 2016 – Reporting Requirements (/s/caro-2016-reporting- 

requirements/)
The MCA issued Company Auditor's Report Order CARO 2016 which auditor of entities are required to
report after performing verification of each clause
4. SRE 2410 Review Of Interim Financial Information Performed By The Independent Auditor Of The Entity
(/s/sre-2410-review-of-interim-financial-information-performed-by-the-independent-auditor-of-the-entity/)
SRE 2410 offer guidance on the professional responsibilities of an auditor against any engagement for
reviewing the interim financial information client
5. SA 710 Comparative Information— Corresponding Figures And Comparative Financial Statements (/s/sa-
710-comparative-information-corresponding-figures-and-comparative-financial-statements/)
SA 710 deals with the responsibilities of an auditor with respect to comparative information in the audit of
the financial statements.
6. SAE 3420 Assurance Engagement to Report on the Compliance of Pro Forma Financial Information
Included in a Prospectus (/s/sae-3420-assurance-engagement-to-report-compliance-of-financial-
information-in-prospectus/)
https://cleartax.in/s/standards-on-auditing 5/9
6/16/2019 Standards on Auditing

SAE 3420 explains reasonable assurance engagement to report on responsible party’s compilation of pro
forma financial information included in the prospectus
7. SAE 3402 Assurance Reports on Controls at Service Organisation (/s/sae-3402-assurance-reports-on-
controls-at-service-organisation/)
SAE 3402 deals with the assurance engagement carried on by a professional accountant to report on
controls at a service organization.
8. SRS 4410 Compilation Engagements (/s/srs-4410-compilation-engagements/)
SRS 4410 deals with responsibilities when engaged to help prepare financial information without acquiring
an assurance information, reporting perse SRS 4410
9. SAE 3400 The Examination of Prospective Financial Information (/s/sae-3400-the-examination-of-
prospective-financial-information/)
SAE 3400 provides guideline on engagement to examine & report on prospective financial information
including examination procedure for estimate & assumption
10. SA 620 Using the Work of an Auditor’s Expert (/s/sa-620-using-the-work-of-an-auditors-expert/)
SA 620 Using the Work of an Auditor’s Expert- Auditor’s responsibility while using expert's work other than
auditing or accounting to obtain audit evidence
11. SA 610 Using the Work of Internal Auditors (/s/sa-610-using-the-work-of-internal-auditors/)
SA 610 Using the Work of Internal Auditors deals with external auditor’s responsibilities while using other
auditor’s work, scope and objective
12. SA 600 Using the Work of Another Auditor (/s/sa-600-using-the-work-of-another-auditor/)
SA 600 Using the Work of Another Auditor deals with the responsibility of the principal auditor in relation to
the use of work of other auditors
13. SA 330 Auditor’s Responses To Assessed Risk (/s/sa-330-auditors-responses-to-assessed-risk/)
SA 330 deals with auditor’s responsibility to design & implement responses to assessed risk of material
misstatement identified in accordance with SA 315
14. SRE 2400 Engagements to review Financial Statements (/s/sre-2400-engagements-to-review-financial-
statements/)
SRE 2400 provides guidance on the professional responsibilities for engagement of reviewing the financial
statements, content and form of report issued
15. SA 450 Evaluation of Misstatement Identified During the Audit (/s/sa-450-evaluation-misstatement-
identified/)

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SA 450 Evaluation of Misstatement Identified During Audit explains auditor’s responsibility to evaluate the
effect of identified & uncorrected misstatements
16. SQC 1 Standard on Quality Control (/s/sqc-1-standard-on-quality-control/)


SQC 1 Standard on Quality Control - responsibilities of a firm for quality control for audits, reviews and other
assurance and related services engagements
17. SRS 4400 Engagements to perform agreed upon procedures regarding financial information (/s/srs-4400-
engagement-to-perform-procedures/)
SRS 4400 provides guidance on responsibilities of an auditor and content and form of the report which the
auditor would issue following such engagements
18. SA 701 Communicating Key Audit Matters in the Independent Auditor’s Report (/s/sa-701-communicating-
key-audit-matters/)
SA 701 deals with the responsibilities of an auditor to communicate the key audit matters in his/her audit
report.
19. SA 700 Forming an Opinion and Reporting on Financial Statements (/s/sa-700-forming-an-opinion-and-
reporting-on-financial-statements/)
SA 700 states the responsibilities of auditor in forming opinion on Financial Statements and Form & Content
of unmodified Audit Report

https://cleartax.in/s/standards-on-auditing 6/9
6/16/2019 Standards on Auditing

20. SA 315 Identifying and Assessing the Risk of Material Misstatement Through Understanding the Entity and
Its Environment (/s/sa-315-risk-of-material-misstatement/)
SA 315 Identifying and Assessing the Risk of Material Misstatement Through Understanding the Entity and
Its Environment deals is critical for a organisation
21. SA 210 (REVISED) Agreeing The Terms of Audit Engagement (/s/sa-210-agreeing-audit-engagement-
terms/)
SA 210 deals with preconditions to be followed prior agreeing to terms of Audit engagement with the
management & certain additional considerations
22. SA 240 – The Auditor’s Responsibility Relating to Fraud In An Audit Of Financial Statements (/s/standard-
on-auditing-sa-240-the-auditors-responsibility-relating-to-fraud-in-an-audit-of-financial-statements/)
SA 240 gives the auditor an ideal approach for identification of fraud & assessment of its Impact on making
an opinion on the financial statements audited.
23. SA 300 Planning an Audit of Financial Statements (/s/sa-300-planning-financial-statements-audit/)
SA 300 entails Auditor's duties while planning Audit of Financial Statements especially in case of recurring
audit engagements with sample Audit Plan
24. SA 200 Objective Of Independent Auditor Conduct Of Audit (/s/sa-200-objectives-of-independent-audit-
conduct-of-audit/)
SA 200 Objective Of Independent Auditor Conduct Of Audit applicability, scope, requirements, definition,
complying with other standards

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
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Audit Report – Basics, Format and Content (/s/audit-report/)
Statutory Audit of Banks (/s/statutory-audit-of-banks/)
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SRE 2410 Review Of Interim Financial Information Performed By The Independent Auditor Of The Entity
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