Auditing and Assurance Standards:
Overview & AAS 1- 26
Meaning
The Auditing and Assurance Standards Board (AASB), operating
under the Council of ICAI, is responsible for developing Indian
Standards on Auditing for application in India.
Each professional accountancy organization in India is responsible
for establishing ethical requirements for its members.
AUDITING AND ASSURANCE STANDARDS
In India, Auditing and Assurance standards are issued by ICAI.
In 1982, ICAI set up Auditing and Assurance Standard Board (AASB) to prepare
auditing standards. Accordingly, AASB issues Statements on Standard Auditing
Practices and Auditing and assurance Standards under the authority of the Council.
As per section 143 (10) of the Companies Act, 2013, The Central Government may
prescribe the standards of auditing or any addendum thereto, as recommended by the
Institute of Chartered Accountants of India, constituted under section 3 of the
Chartered Accountants Act, 1949, in consultation with and after examination of the
recommendations made by the National Financial Reporting Authority
COMPLIANCE WITH AUDITING
STANDARDS
As per section 143 (9) of the Companies Act, 2013, every auditor shall
comply with the auditing standards. If for any reason the member is unable
to perform an audit in accordance with the generally accepted auditing
standards, his report should draw attention to any material departures there
from, failing which he would be held guilty of professional misconduct
under clause 9 of Part 1 of the Second Schedule to the Chartered
Accountants Act, 1949.
OBJECTIVES AND FUNCTIONS OF THE AUDITING AND ASSURANCE
STANDARDS BOARD (AASB)
The following are the objectives and Functions of the Auditing and Assurance Standards
Board (AASB):
1. To review the existing and emerging auditing practices worldwide and identify areas in
which Standards on Quality Control, Engagement Standards and Statement on Auditing
need to be developed.
2. To formulate Engagement Standards, Standards on Quality Control and Statement on
Auditing so that these may be issued under the authority of the Council of the Institute.
3. To review the existing Standards and Statements on Auditing to assess their relevance
in the changed conditions and to undertake their revision, if necessary.
4. To develop guidance notes on issues arising out of any Standard, auditing issues
pertaining to any specific industry or on generic issues, so that those may be issued under
the authority of the Council of the Institute.
OBJECTIVES AND FUNCTIONS OF THE AUDITING AND
ASSURANCE STANDARDS BOARD (AASB)
5. To review the existing guidance notes to access their relevance in the changed
circumstances and to undertake their revision, if necessary.
6. To formulate General Clarifications, where necessary, on issues arising from
Standards.
7. To formulate and issue Technical Guides, Practice Manuals, Studies and other papers
under its own authority for guidance of professional accountants in the cases felt
appropriate by the Board.
PROCEDURE FOR ISSUING STANDARDS
Auditing and Assurance Standards Board (AASB) of the Institute formulates the auditing
standards. Broadly, the following procedure is adopted for the formulation of Standards on
Auditing (SAs):
The Auditing and Assurance Standards Board identifies the areas where auditing standards
need to be formulated and the priority in regard to their selection.
In the preparation of Auditing Standards, AASB is assisted by study groups/task force
constitute to consider specific project. Study group comprising of a cross section of members
of the Institute.
The study group/task force is responsible for preparing the primarily draft of Standards.
Based on the work of the study groups, an exposure draft of the proposed Standards is
prepared by the Committee and issued for comments by members of the ICAI.
After taking the comments into consideration, AASB finalize the draft and submit to the
Council of the Institute.
The Council on its review of the draft, makes suitable modifications in consultations with the
AASB and then Standards/Statements is issued under the authority of the Council
AAS 1 to 26
New AAS No. Old no. Title of the Statement Effective Date
SA 200 AAS 01 Basic Principles Governing an Audit
SA 200A AAS 02 Objectives and Scope of the Audit of Financial Statements
SA 230 AAS 03 Documentation
SA 240 AAS 04 The Auditor‘s Responsibility to Consider Fraud and Error in an Audit of
Financial Statements
SA 500 AAS 05 Audit Evidence
SA 610 AAS 07 Relying Upon the Work of an Internal Auditor
SA 300 AAS 08 Audit Planning
SA 620 AAS 09 Using the Work of an Expert
SA 600 AAS 10 Using the Work of Another Auditor
SA 580 AAS 11 Representations by Management
SA 299 AAS 12 Responsibility of Joint Auditors
AAS 1 to 26
New AAS No. Old no. Title of the Statement Effective Date
SA 320 AAS 13 Audit Materiality
SA 520 AAS 14 Analytical Procedures
SA 530 AAS 15 Audit Sampling
SA 570 AAS 16 Going Concern
SA 220 AAS 17 Quality Control for Audit Work
SA 540 AAS 18 Audit of Accounting Estimates
SA 560 AAS 19 Subsequent Events
SA 315 AAS-20 Knowledge of the Business
SA 250 AAS 21 Consideration of Laws and Regulations in an Audit of Financial Statements
SA 510 AAS 22 Initial Engagements – Opening Balances
SA 550 AAS 23 Related Parties
SA 402 AAS 24 Audit Considerations Relating to Entities Using Service Organisations
SA 710 AAS 25 Comparatives
SA 210 AAS 26 Terms of Audit Engagement
AAS 1 to 26
New AAS No. Old no. Title of the Statement Effective Date
SA 260 AAS 27 Communication of Audit Matters with Those Charged with Governance
SA 700 AAS 28 The Auditor‘s Report on Financial Statements
SA 505 AAS 30 External Confirmations
SRS 4410 AAS 31 Engagements to Compile Financial Information
SRS 4400 AAS 32 Engagements to Perform Agreed-upon Procedures Regarding Financial
Information
SRE 2400 AAS 33 Engagements to Review Financial Statements
SA 501 AAS 34 Audit Evidence – Additional Considerations for Specific Items
SAE 3400 AAS 35 The Examination of Prospective Financial Information
SQC 1 AAS 36 Quality Control for Firms that Perform Audit and Reviews of Historical
Financial Information, and other Assurance and Related Services
Engagements‖
