MAIN AMENDMENTS IN C.A. FINAL AUDITING (compiled by CA SURBHI BANSAL)
1. AUDITING AND ASSURANCE STANDARDS have been renamed w.e.f. APRIL 1st,
2008. A comparative table of both the schemes is as follows:
Renumbering of the auditing and Assurance standards at a Glance (New
scheme)
Existing
AAS
Number
Title of the Standard
New Number of the
Standard
1. Basic principle governing an audit Standard on auditing
(SA) 200
2. Objective and scope of the audit of financial statements SA200A
3. Documentation SA- 230
4. The auditors Responsibility to Consider fraud and error in
audit of financial statements
SA-240
5. Audit Evidence SA-500
6. Risk assessments and internal control SA 400
7. Relying upon the work of an internal auditor SA 610
8. Audit Planning SA 300
9. Using the work of an Expert SA 620
10. Using the work of another auditor SA 600
11. Representations by Management SA 580
12. Responsibility of joint auditors SA 299
13. Audit Materiality SA 320
14. Analytical Procedures SA 520
15. Audit sampling SA 530
16. Going concern SA 570
17. Quality Control for audit work SA 220
18. Auditing of accounting estimates SA 540
19. Subsequent events SA 560
20. Knowledge of the Business SA 310
21. Consideration of laws and regulations in an audit of financial
statements
SA 250
22. Initial engagements opening balance SA 510
23. Related Parties SA 550
24. Audit Considerations relating to entities using service
organisations
SA 402
25. Comparatives SA 710
26. Terms of audit engagement SA 210
27. Communication of audit matter with those charged with
governance
SA 260
28. The auditors reports on financial statements SA 700
29. Audit in a computers information systems environment SA 401
30. External confirmations SA 505
31. Engagements to compile financial information Standard on related
service (SRS) 4410
32. Engagement to perform agreed upon procedures regarding
financial information
SRS 4400
33. Engagement to review financial statements Standard on review
engagement
(SRE)2400
34. Audit Evidence additional Consideration for specific Items SA 501
35. The Examination of Prospective financial information Standard on
assurance
Engagements
(SAE)3400
COMPLETED NEW SCHEME OF STANDARDS AS ISSUED BY ICAI (details of above)
Audits and Reviews of Historical Financial Information
• 100-999 Standards on Auditing (SAs)
• 100-199 Introductory Matters
• 200-299 General Principles and Responsibilities
• SA 200 (AAS 1), “Basic Principles Governing an Audit”
• SA 200A (AAS 2), “Objective and Scope of the Audit of Financial
Statements”
• SA 210 (AAS 26), “Terms of Audit Engagement”
• SA 220 (AAS 17), “Quality Control for Audit Work”
• SA 230 (AAS 3), “Documentation”
• SA 240 (AAS 4), “The Auditor’s Responsibility to Consider Fraud and
Error in an Audit of Financial Statements”
• SA 250 (AAS 21), “Consideration of Laws and Regulations in an Audit of
Financial Statements”
• SA 260 (AAS 27), “Communications of Audit Matters with Those
Charged with Governance”
• SA 299 (AAS 12), “Responsibility of Joint Auditors”
• 300-499 Risk Assessment and Response to Assessed Risks
• SA 300 (AAS 8), “Audit Planning”
• SA 310 (AAS 20), “Knowledge of the Business”
• SA 320 (AAS 13), “Audit Materiality”
• SA 400 (AAS 6), “Risk Assessments and Internal Control”
• SA 401 (AAS 29), “Audit in a Computer Information Systems
Environment”
• SA 402 (AAS 24), “Audit Considerations Relating to Entities Using
Service Organisations”
• 500-599 Audit Evidence
• SA 500 (AAS 5), “Audit Evidence”
• SA 501 (AAS 34), “Audit Evidence – Additional Considerations for
Specific Items”
• SA 505 (AAS 30), “External Confirmations”
• SA 510 (AAS 22), “Initial Engagements – Opening Balances”
• SA 520 (AAS 14), “Analytical Procedures”
• SA 530 (AAS 15), “Audit Sampling”
• SA 540 (AAS 18), “Auditing of Accounting Estimates”
• SA 550 (AAS 23), “Related Parties”
• SA 560 (AAS 19), “Subsequent Events”
• SA 570 (AAS 16), “Going Concern”
• SA 580 (AAS 11), “Representations by Management”
• 600-699 Using Work of Others
• SA 600 (AAS 10), “Using the Work of Another Auditor”
• SA 610 (AAS 7), “Relying Upon the Work of an Internal Auditor”
• SA 620 (AAS 9), “Using the Work of an Expert”
• 700-799 Audit Conclusions and Reporting
• SA 700 (AAS 28), “The Auditor’s Report on Financial Statements”
• SA 710 (AAS 25), “Comparatives”
• 800-899 Specialized Areas
2000-2699 Standards on Review Engagements (SREs)
• SRE 2400 (AAS 33), “Engagements to Review Financial Statements”
Assurance Engagements Other Than Audits or Reviews of Historical Financial Information
• 3000-3699 Standards on Assurance Engagements (SAEs)
• 3000-3399 Applicable to All Assurance Engagements
• 3400-3699 Subject Specific Standards
• SAE 3400 (AAS 35), “The Examination of Prospective Financial
Information”
Related Services
• 4000-4699 Standards on Related Services (SRSs)
• SRS 4400 (AAS 32), “Engagements to Perform Agreed-upon Procedures
Regarding Financial Information”
• SRS 4410 (AAS 31), “Engagements to Compile Financial Information”
2. CHARTERED ACCOUNTANTS CAN SHARE PROFITS AND CAN ENTER
INTO A MULTIDISCIPLINARY PARTNERSHIP FIRM
Institute of Chartered Accountants of India has issued a notification no. Na.1-CA(7)/116/ 2008 dated 25-9-
2008 incorporating various amendment to the Chartered Accountants Regulations, 1988.
These amendments are summarized as under
The qualifications to share profits / remunerations / commission / brokerage etc.( Under clause 2 and 3 of
part I of first schedule)
(i) Company Secretary within the meaning of the Company Secretaries Act, 1980;
(ii) Cost Accountant within the meaning of the Cost and Works Accountants Act, 1959;
(iii) Actuary within the meaning of the Actuaries Act, 2006;
(iv) Bachelor in Engineering, from a University established by law or an Institution recognised by law;
(v) Bachelor in Technology from a University established by law or an Institution recognised by law;
(vi) Bachelor in Architecture from a University established by law or an Institution recognised by law;
(vii) Bachelor in Law from a University established by law or an Institution recognised by law;
(viii) Master in Business Administration from Universities established by law or technical institutions
recognised by All india Council for Technical Education.
Prescribed qualifications of a eligible partner who is not a member of ICAI ( Under clause 4 of part I of first
schedule)
(a) Company Secretary, member, The Institute of Company Secretaries of India, established under the
Company Secretaries Act, 1980;
(b) Cost Accountant, member, The Institute of Cost and Works Accountants of India established under the
Cost and Works Accountants Act, 1959;
(c) Advocate, member, Bar Council of India established under the Advocates Act, 1961;
(d) Engineer, member, The Institution of Engineers, or Engineering from a University established by law or
an Institution recognized by law.
(e) Architect, member, The Indian Institute of Architects established under the Architects Act, 1972;
(f) Actuary, member, The Institute of Actuaries of India, established under the Actuaries Act, 2006.
(g) Professional bodies or Institutions outside India whose qualifications relating to accountancy are
recognised by the Council.
3. A CHARTERED ACOUNTANT IN PRACTICE CAN TAKE UP 45 TAX
AUDITS (earlier limit was 30 per chartered accountant)
4. ICAI Guidelines No.1-CA(7)/ Council Guidelines/01/2008, Dated 14th
May,2008
GUIDELINES FOR ADVERTISEMENT FOR THE MEMBERS IN PRACTICE
(Issued Pursuant to Clause (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949.)
The Members may advertise through a write up setting out their particulars or of
their firms and services provided by them subject to the following Guidelines and
must be presented in such a manner as to maintain the profession’s good
reputation, dignity and its ability to serve the public interest.
The Member(s)/Firm(s) should ensure that the contents of the Write up are
true to the best of their knowledge and belief and are in conformity with
these Guidelines and be aware that the Institute of Chartered Accountants of
India does not own any responsibility whatsoever for such contents or claims
by the Writer Member(s) / Firm(s).
Definitions
For the purpose of these Guidelines:
(i) The “Act” means The Chartered Accountants Act, 1949.
(ii) “Institute” means the Institute of Chartered Accountants of India.
(iii) “write up” means the writing of particulars according to the information
given in the Guidelines setting out services rendered by the Members or firms
and any writing or display of the particulars of the Member(s) in Practice or of
firm(s) issued, circulated or published by way of print or electronic mode or
otherwise including in newspapers, journals, magazines and websites ( in Push
as well in Pull mode) in accordance with the Guidelines.
(The terms not defined herein have the same meaning as assigned to them in the Chartered
Accountants Act, 1949 and the Rules, Regulations and Guidelines made there under.)
2
The write-up may include only the following information:
(A) For Members
(i) Name ……………… Chartered Accountant
(ii) Membership No. with Institute
(iii) Age
(iv) Date of becoming ACA
(v) Date of becoming FCA
(vi) Date from which COP held
(vii) Recognized qualifications
(viii) Languages known
(ix) Telephone/Mobile/Fax No.
(x) Professional Address
(xi) Web
(xii) E-mail
(xiii) C A Logo
(xiv) Passport size photograph
(xv) Details of Employees (Nos. - )
(a) Chartered Accountants -
(b) Other Professionals –
(c) Articles/Audit Assistants
(d) Other Employees
(xvi) Names of the employees and their particulars on the lines allowed
for a member as stated above.
(xvii) Services provided
(a) ………………………………
(b) ………………………………
(c) ………………………………
(B) For Firms
(i) Name of the Firm …………………… Chartered Accountants
(ii) Firm Registration No. with Institute
(iii) Year of establishment.
(iv) Professional Address(s)
(v) Working Hours
(vi) Tel. No(s)/Mobile No./Fax No(s)
(vii) Web address
(viii) E-mail
(ix) No. of partners
3
(x) Name of the proprietor/partners and their particulars on the lines
allowed for a member as stated above including passport size
photograph.
(xi) C A Logo
(xii) Details of Employees (Nos. - )
(a) Chartered Accountants -
(b) Other professionals –
(c) Articles/Audit Assistants
(d) Other employees
(xiii) Names of the employees of the firm and their particulars on the lines
allowed for a member as stated above.
(xiv) Services provided:
(a) ……………………………….
(b) ………………………………
(c) ………………………………
The write-up may have the Signature, Name of the Member/ Name of the
Partner signing on behalf of the firm, Place and Date.
Other Conditions
(i) The write-up should not be false or misleading and bring the profession into
disrepute.
(ii) The write-up should not claim superiority over any other Member(s)/Firm(s).
(iii) The write-up should not be indecent, sensational or otherwise of such
nature which may likely to bring the profession into disrepute.
(iv) The write-up should not contain testimonials or endorsements concerning
Member(s).
(v) The write-up should not contain any other representation(s) that may like to
cause a person to misunderstand and/or to be deceived.
(vi) The write-up should not violate the provisions of the ‘Act’, Rules made there
under and ‘The Chartered Accountants Regulations,1988’.
(vii) The write-up should not include the names of the clients (both past and
present)
(viii) The write-up should not be of font size exceeding 14.
(ix) The write-up should not contain any information other than stated in Para 3
hereinabove.
(x) The write-up should not contain any information about achievements /
award or any other position held.
(xi) The particulars of information required at para (ii) of 3(A) and para (ii) of
3(B) above is mandatory.
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