Audit Amendments for CA Final and CA Intermediate | CA IPCC May 2017 Exam
Audit AmendmentsAudit Amendments: IPCC Audit Amendments:
In the entire IPCC Auditing part, there are few minor changes in the Company Audit Part. Other than that, there are no new changes in the CA Intermediate | CA IPCC Audit Syllabus applicable for May 2017 exam
Audit Amendments regarding matters to contain in Audit Report:
Every Audit report made by an auditor u/s 143 of the Companies Act, 2013 relating the accounts of every company audited by him/her, to which this Order applies, for the financial years commencing on or after 1st April, 2015, shall in addition, contain the matters specified in paragraphs 3 and 4, as may be applicable.
CARO 2016 replaces CARO 2015
In the early months of 2016, the government has notified the CARO 2016. As this notification has come before April, CARO 2016 will be applicable for the upcoming Nov 2016 and May 2017 CA Intermediate | CA IPCC Exams.
Audit AmendmentsAudit Amendments: CA Final Auditing and Professional Ethics Amendments:
- The statement on reporting under Section 143 of the Companies Act, 2013 (Section 227(1A) of the Companies Act, 1956) shall be applicable for May, 2017 Examination. Companies (Auditor’s Report) Order, 2016 [CARO] issued by Ministry of Corporate Affairs on 29th March, 2016 is applicable for CA Final May 2017 Exams.
- All auditing related sections of the Companies Act, 2013 up to 31-10-2016 shall be applicable for CA Final May, 2017 Exams. All other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 31st October, 2016 is applicable for May 2017 Examination.
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Companies (Auditor’s Report) Order, 2016 are applicable for May, 2017 Examination.
Audit AmendmentsAudit Amendments: Engagements and Quality Control Standards on Auditing:
Following are the lists of all 44 Engagements and Quality Control Standards on Auditing which are applicable in CA May, 2017 exams.
SQC 1: Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
SA 200: Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
SA 210: Agreeing the Terms of Audit Engagements
SA 220: Quality Control for Audit of Financial Statements
SA 230: Audit Documentation
SA 240: The Auditor’s responsibilities relating to Fraud in an Audit of Financial Statements
SA 250: Consideration of Laws and Regulations in An Audit of Financial Statements
SA 260: Communication with Those Charged with Governance
SA 265: Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
SA 299: Responsibility of Joint Auditors
SA 300: Planning an Audit of Financial Statements
SA 315: Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
SA 320: Materiality in Planning and Performing an Audit
SA 330: The Auditor’s Responses to Assessed Risks
SA 402: Audit Considerations Relating to an Entity Using a Service Organization
SA 450: Evaluation of Misstatements Identified during the Audits
SA 500: Audit Evidence
SA 501: Audit Evidence – Specific Considerations for Selected Items
SA 505: External Confirmations
SA 510: Initial Audit Engagements-Opening Balances
SA 520: Analytical Procedures
SA 530: Audit Sampling
SA 540: Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
SA 550: Related Parties
SA 560: Subsequent Events
SA 570: Going Concern
SA 580: Written Representations
SA 600: Using the Work of Another Auditor
SA 610 (Revised): Using the Work of Internal Auditors
SA 620: Using the Work of an Auditor’s Expert
SA 700: Forming an Opinion and Reporting on Financial Statements
SA 705: Modifications to the Opinion in the Independent Auditor’s Report
SA 706: Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
SA 710: Comparative Information – Corresponding Figures and Comparative Financial Statements
SA 720: The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements
SA 800: Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework
SA 805: Special Considerations-Audits of Single Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
SA 810: Engagements to Report on Summary Financial Statements
SRE 2400 (Revised): Engagements to Review Financial Statements
SRE 2410: Review of Interim Financial Information Performed by the Independent Auditor of the Entity
SAE 3400: The Examination of Prospective Financial Information
SAE 3402: Assurance Reports on Controls At a Service Organisation
SAE 3420 (New): Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus
SRS 4400: Engagements to Perform Agreed Upon Procedures Regarding Financial Information
SRS 4410 (Revised): Engagements to Compile Financial Information
Audit AmendmentsAudit Amendments: Guidance Notes and other publications:
Following are the list of 14 Guidance Notes and other publications which are fully applicable for CA Final May, 2016 exams:
1. Code of Ethics
2. Guidance Note on Independence of Auditors
3. Guidance Note on Audit under Section 44AB of the Income-tax Act (Revised in view of Latest Form 3CA, 3CB and 3CD notified on 25th July).
4. Guidance Note on Audit of Inventories
5. Guidance Note on Audit of Debtors, Loans and Advances
6. Guidance Note on Audit of Investments
7. Guidance Note on Audit of Cash and Bank Balances
8. Guidance Note on Audit of Liabilities
9. Guidance Note on Audit of Revenue
10. Guidance Note on Audit of Expenses
11. Guidance Note on Computer Assisted Audit Techniques (CAATs).
12. Guidance Note on Audit of Payment of Dividend.
13. Guidance Note on Audit of Capital and Reserves.
14. Guidance Note on Audit of Banks.
15. Guidance Note on Audit of Internal Financial Controls over Financial Reporting.
16. Guidance Note on Reporting under section 143 (3) (f) and (h) of the Companies Act, 2013.
17. Guidance Note on Reporting on Fraud under section 143(12) of the Companies Act, 2013.
18. Guidance Note on the Companies (Auditor’s Report) Order, 2016
Audit AmendmentsAudit Amendments: CARO 2016 applicable for CA Final May 2017
In the beginning months of 2016, the government has notified the CARO 2016. As this notification has come before April, CARO 2016 will be applicable for the upcoming Nov 2016 and May 2017 CA Intermediate | CA IPCC Exams.
Audit Amendments in Inventories part: Auditor need to collect necessary evidences to ensure that physical verification of inventory has been conducted at reasonable intervals by the management and discrepancies were noticed has been dealt with in the books of account.
Audit Amendments in Deposit under CARO: Definition of the deposit as per companies act is so wider like advance received from customers and not adjusted up to or more than 365 days become included under the definition of deposit. Various other transactions are fall under that category.
Note : “Strictly speaking, there are no new amendments in the Nov 2016 Syllabus apart from the applicability of CARO 2016.”
Audit AmendmentsAudit Amendments
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