Who regulates accounting and auditing in India?
Before the passing of companies Act, 2013 the account & audit actions were regulated by the world’s 2 nd biggest accounting body ICAI but through the Companies Act, 2013 a quasi-judicial body named National Finance Reporting Authority of India (NFRA) which is the renewed form of NACAS also empowered with the account & audit regulation power.
What is the history of auditing in India?
The Indian Audit and Accounts Department has been continuously striving to upgrade and update its auditing practice as part of its overall endeavour to achieve professional excellence. The Auditing Standards were first brought out by the Department in 1994 and were subsequently revised in 2002.
When do the SAI India audit standards come into effect?
These Auditing Standards are effective from 1 April 2017. All audit engagements as per the audit mandate of SAI India on or after this date shall be conducted in accordance with these standards.
What is social audit in India?
( January 2016) Auditing in India is a system of independently reviewing the records/activities and expressing an opinion thereon. Social audit is a process of reviewing official records and determining whether state reported expenditures reflect the actual monies spent on the ground.
How does SAI India communicate audit results?
Why is public sector auditing important?
What are the standards of SAI India?
What is CAG in India?
What is the purpose of SAI?
What is the purpose of Article 149 of the Constitution of India?
What are the principles of SAI India?
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About this website
WHO issued standards on auditing in India?
ICAIIn 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.
WHO issued standards on auditing?
the International Auditing and Assurance Standards BoardInternational Standards on Auditing (ISA) are professional standards for the auditing of financial information. These standards are issued by the International Auditing and Assurance Standards Board (IAASB).
How many auditing standards are issued by ICAI?
The standards on auditing have been divided into 38 standards presently grouped into 6 categories as detailed below.
What are the auditing standards in India?
Standards on AuditingStandards on Quality Control (SQCs)SQC 1Quality Control for Firms that Perform Audit and Reviews of Historical Financial Information, and other Assurance and Related Services EngagementsSA 320Materiality in Planning and Performing an AuditSA 330The Auditor's Responses to Assessed Risks57 more rows•Feb 17, 2022
How are auditing standards formed?
The ASB develops and issues standards in the form of Statements on Auditing Standards (SASs) through a due process that includes deliberation in meetings open to the public, public exposure of proposed SASs, and a formal vote. The SASs are codified within the framework of the 10 standards.
How many accounting standards are there in India?
As on date MCA has notified 40 Ind AS (Ind AS 11 is ommited by companies).
How many accounting standards are there in India 2022?
Entire set of revised Accounting Standards will consist of 32 standards which are at various stages of revision/ formulation, which shall replace the existing standards, when implemented from a future date.
How many types of auditing standards are there?
The three mandatory elements are the Definition of Internal Auditing, the Code of Ethics, and the International Standards for the Professional Practice of Internal Auditing (Standards).
What are 5 accounting standards?
Some common examples of accounting standards are segment reporting, goodwill accounting, an allowable method for depreciation, business combination, lease classification, a measure of outstanding share, and revenue recognition.
Who regulates accountants in India?
The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of Parliament, viz. The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for regulating the profession of Chartered Accountancy in the country.
What is meant by auditing standards?
Generally Accepted Auditing Standards (GAAS) are a set of principles and requirements that provide the basis for how an auditor prepares for, performs, and reports the results of audits.
Are auditing standards mandatory?
Standards are principle-focused and provide a framework for performing and promoting internal auditing. The Standards are mandatory requirements consisting of: Statements of basic requirements for the professional practice of internal auditing and for evaluating the effectiveness of its performance.
Who sets auditing standards for private companies?
U.S. GAAS for private companies are set and overseen by the Auditing Standards Board (ASB), a committee designated by the American Institute of Certified Public Accountants (AICPA).
Who sets auditing standards for public companies?
In the United States, the Public Company Accounting Oversight Board develops standards (Auditing Standards or AS) for publicly traded companies since the 2002 passage of the Sarbanes–Oxley Act; however, it adopted many of the GAAS initially.
WHO issues GAAS?
113.] Government Auditing Standards issued by the comptroller general of the United States, or rules and regulations promulgated by the U.S. Securities and Exchange Commission.
Who is responsible for establishing auditing standards for privately held companies?
Who is responsible for establishing auditing standards for audits of U.S. private companies? Explain. 2-5 The PCAOB has responsibility for establishing auditing standards for U.S. public companies, while the Auditing Standards Board (ASB) of the AICPA establishes auditing standards for U.S. private companies.
CAG’s Auditing Standards 2nd Edition
CAG’s Auditing Standards 2017. Auditing Standards. INDIAN AUDIT AND ACCOUNTS DEPARTMENT. AUDITING STANDARDS 2017 (538KB). Comptroller and Auditor General of India
CAG’s Auditing Standards 2017 | Accountant General (Audit) Nagaland ...
Preface. The Indian Audit and Accounts Department has been continuously striving to upgrade and update its auditing practice as part of its overall endeavour to achieve professional excellence.
CAG's Auditing Standards Comptroller and Auditor General of India
CAG s Auditing Standards Comptroller and Auditor General of India Table of Contents Chapter Chapter Heading Page number 1 Basic Postulates 1-6 2 General Standards 7-18 3 Specific Standards 19-38 Preface The Indian Audit and Accounts Department has been continuously striving to upgrade and update its auditing practice as part of its overall endeavour to achieve professional excellence.
How many standards are there in auditing?
The standards on auditing have been divided into 38 standards presently grouped into 6 categories as detailed below.
What is the purpose of standards on auditing?
Standards on Auditing assist the auditor in proper and optimum discharge of their profession duties and promote uniformity in practice as also comparability .
What is risk based audit?
In a risk-based audit, the auditor seeks to obtain a reasonable assurance that no material misstatements whether caused by fraud or errors exist in the financial statements. Risk based auditing primarily involves the following steps: Assessing the risks of material misstatement in the financial statements.
What is materiality in auditing?
The standards on auditing refer to the concept of materiality. Information is considered material if its omission or misstatement has the potential to influence the economic decisions of users taken on the basis of the financial statements.
What is required for an auditor to perform an audit?
An audit requires the auditor to perform procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion. The auditor applies professional judgement in deciding which procedures are to be performed. This requires the auditor to rely on their knowledge, training and experience and professional skepticism.
What is SQC in accounting?
SQC requires that the firm should establish a system of quality control designed to provide it with reasonable assurance that the firm and its personnel comply with professional standards, regulatory, legal requirements, and that reports issued by the firm or engagement partner (s) are appropriate in the circumstances.
What is the objective of the Standards?
Objective of the Standards. The standards on auditing, review, other assurance, quality control and related services are aimed towards delivery of high-quality audits by improving the quality of practice by professional accountants and ultimately increase public confidence in financial reporting.
Description
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..
Instructor
Hello, I am a Chartered Accountant from India..I am Working in chennai. I am passionate about teaching various courses to students across the world.My courses are always student friendly and to the point.
What has consolidated the auditor's position as a watchdog?
In the last two decades, rapid and vast development in corporate governance has consolidated the auditor’s position as a watchdog. The perpetual accounting and auditing failures like Enron, WorldCom, Paramalt, and more recently Satyam has exposed serious lacuna in the auditing. India’s largest accounting fraud “Satyam” has dented auditing profession and surfaced the inherent conflicting position of auditors in the Indian business scenario. The recent ‘PNB’ scam and the more recent resignation of auditors in several listed entities just before the financial statements were to be adopted has also put the auditors; and their role in the limelight.
What is accounting standards?
It is the semantics for such communication. Accounting standards are the grammar of such language used by entities in such communication. The separation of ownership and management in the growing businesses and modern day complexities added the importance of timely and accurate communications. The grammar (i.e. Accounting Standards) blends uniformity in reporting and facilitation of unambiguous communication with the variety of stakeholders including but not limited to owners/shareholders, employees, regulators, trade/business relations, revenue authorities etc.
What is ICAI 18.1?
18.1 The ICAI has issued revised standards on audit reporting. The same are based on the ISAs issued by IFAC in 2016. The reason stated by IFAC for issue of the revised ISAs is as under:
Why do companies use IFRS?
IFRS make this work easier because most companies are / will follow same accounting standards in preparing their financial statements.
What is auditing in accounting?
13.1 The word audit comes from the word “Audire” (means to hear). In general, it is a synonym to control, check, inspect, and revise. In early days an auditor used to listen to the accounts read over by an accountant in order to check them. Auditing is as old as accounting. It was in use in all ancient countries such as Mesopotamia, Greece, Egypt, Rome, U.K. and India. The Vedas contain reference to accounts and auditing. Arthasashthra by Kautilya also detailed rules for accounting and auditing of public finances.
What are the key features of IFRS 11.1?
11.1 The key features of Ind-AS which are principle-based IFRS converged standards include fair value measurement, use of time value of money and reliance on robust disclosures. These Standards are applicable for separate as well as consolidated financial statements.
How does SAI India communicate audit results?
Once the Audit Reports are tabled in the concerned legislature, SAI India shall communicate audit results through website and other means and may communicate with the media or other stakeholders on matters included in the reports thereby enhancing transparency and accountability of the audit work. Public and academic interest in important conclusions shall be encouraged. Its reports shall be made understandable to the wide public through various means e.g. summaries, graphics, video presentations and press releases.
Why is public sector auditing important?
Public sector auditing is essential in that it provides legislature and oversight bodies, those charged with governance and the general public with information, independent and objective assessments concerning the stewardship and performance of public sector policies, programmes or operations.
What are the standards of SAI India?
The standards and methodologies adopted by SAI India shall be consistent with the fundamental auditing principles elaborated under the International Standards of Supreme Audit Institutions (ISSAIs) of International Organisation of Supreme Audit Institutions (INTOSAI). While conducting its audits, SAI India shall communicate the criteria on which opinions would be based to the auditable entities and keep them informed about the audit objectives, methodology and findings. SAI India shall also communicate the scope of audits undertaken as part of the reporting process. Its audit findings and recommendations shall be subject to procedures of comment, discussion and responses from the audited entity.
What is CAG in India?
The Comptroller and Auditor General of India (CAG) who is the head of Supreme Audit Institution of India (SAI India) discharges his constitutional functions through the Indian Audit and Accounts Department. The Constitution of India provides for the Comptroller and Auditor General of India who is appointed by the President of India by warrant under his hand and seal. The Constitution provides that the salary and other conditions of service as well as the duties and powers of CAG may be determined by Parliament by law. In pursuance of these provisions, the Parliament enacted the CAG’s (Duties, Powers and Conditions of Service) Act, 1971 (DPC Act) to determine the conditions of service of the CAG and to prescribe his duties and powers. In exercise of powers conferred by the DPC Act, as amended from time to time, the CAG framed the Regulations on Audit and Accounts, 2007, which provide the overarching governance framework for both accounting and auditing functions. The CAG’s Auditing Standards constitute the next layer of the audit governance framework and set out the professional standards of auditing for the organisation as well as for its personnel - the individual auditors. As an ongoing initiative for continuous improvement and benchmarking, these standards are periodically reviewed, restructured and updated.
What is the purpose of SAI?
The aim is to answer key audit questions and to provide recommendations for improvement. SAI, India may carry out audits or engagements on any subject of relevance to the responsibilities of executive and those charged with governance and the appropriate use of public resources, within its given mandate.
What is the purpose of Article 149 of the Constitution of India?
1.3.1 Article 149 of the Constitution of India envisages that CAG shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States and of any other authority or body as may be prescribed by or under any law made by Parliament.
What are the principles of SAI India?
The fundamental principles of ethics are integrity, independence, objectivity and impartiality, confidentiality and competence. SAI India shall ensure transparency and legality of its operations and actively promotes ethical behaviour throughout the organisation.
Preface
Chapter-I Introduction
- 1.1 Introduction
The Comptroller and Auditor General of India (CAG) who is the head of Supreme Audit Institution of India (SAI India) discharges his constitutional functions through the Indian Audit and Accounts Department. The Constitution of India provides for the Comptroller and Auditor General of India … - 1.2 Purpose and Authority of the Standards
These standards establish the norms which are applicable to all public sector audit engagements, irrespective of their form or context. These standards incorporate the Prerequisites for the functioning of Supreme Audit Institutions and Fundamental Auditing Principles of the Internatio…
Chapter-Ii General Standards
- Public Sector Auditing and its Objectives
2.1.1 Public sector2 audit environment is that in which governments and other entities exercise responsibility for the use of national wealth, natural resources, resources derived from taxation and other sources in the delivery of services to citizens and other recipients. These entities are a… - 2.3 Elements of Public Sector Auditing
Public sector auditing is indispensable for the public administration, as the management of public resources is a matter of trust. Responsibility for the management of public resources in line with intended purposes is entrusted to an entity or person who acts on behalf of the public. Public se…
Chapter-Iii Specific Standards
- 3.1 Introduction
The general principles relating to the basic audit concepts and those relating to the audit process applicable to all types of public sector audits constituting the general standards have been described in Chapter 2. In addition, this section contains the specific considerations regarding th… - Financial Audit
The purpose of an audit of financial statements is to enhance the degree of confidence of intended users in the financial statements. This is achieved through the expression of an opinion by the auditor as to whether the financial statements are prepared, in all material respects, in ac…