Standards of Auditing in india (SA)

This course is applicable for all indian students who wish to enrich their knowledge in Auditing standards as practiced in india..This course is self explanatory .The students are requested to study all the standards to have a thorough knowledge in auditing.This course can be pursued by college students and other students who pursue professional finance courses.

The benefit of an audit is that it provides assurance that management has presented a ‘true and fair’ view of a company’s financial performance and position. An audit underpins the trust and obligation of stewardship between those who manage a company and those who own it or otherwise have a need for a ‘true and fair’ view, the stakeholders

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.

As per section 143 (9) of the Companies Act, 2013, every auditor shall comply with the auditing standards.

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.

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