Quality Control Procedure for Statutory Financial Audit by Saha Siddhartha Sankar;Roy Mitrendu Narayan;

Author:Saha, Siddhartha Sankar;Roy, Mitrendu Narayan;
Language: eng
Format: epub
Publisher: Emerald Publishing Limited
Published: 2017-06-28T00:00:00+00:00

The SA-200 (Revised) provides an inclusive directive for statutory auditors for conducting quality audits. It also mandates an auditor to show professional skepticism and professional judgement to uncover the possibilities of fabrication in financial statements despite fulfilment of ethical requirements in accordance with the Code of Ethics.31

Audit engagement (based on SA-210)

The governing standard for audit engagement is SA-210 (Revised), titled ‘Agreeing the Terms of Audit Engagement’. Major requirements as per this standard are: 32

Fulfilling the prerequisites of an audit;

Accessing full information about the engagement;

Discussing with management if preconditions are not met;

Accepting the engagement on the basis of their agreement on the objectives and scope of the auditor; responsibilities of the auditor; responsibilities of the management; applicable financial reporting framework; and form and content of the audit report;

Revising audit agreement in further engagements;

Proscribing any change in audit agreement as per management discretion;

Determining any conflicts between two sets of standards on the basis of which the financial statements are prepared;

Accepting an engagement only when management agrees to make additional financial disclosure in the case of a misleading financial reporting framework;

Not accepting an engagement if the form and content of the audit report as per the applicable regulation are diverse from those of SAs.

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