Auditing And Assurance Standards


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Auditing And Assurance Standards

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Auditing And Assurance Standards

  1. 1. Auditing and Assurance Standards By: Roshan Samuel III B’Com “B”
  2. 2. AAS 19 – Subsequent Events <ul><li>The purpose of the AAS is to establish standards on the auditor’s responsibility regarding subsequent events. </li></ul><ul><li>The AAS – 19 states that: </li></ul><ul><li>“ The auditor should consider the effect of subsequent events on the financial statements and on the Auditor’s Report.” </li></ul>
  3. 3. Subsequent Events <ul><li>It refers to significant events occurring between the Balance Sheet date and the date of the Auditor’s Report. </li></ul>
  4. 4. Auditor’s Procedures <ul><li>Reviewing management procedures </li></ul><ul><li>Reading minutes of meetings of shareholders, BOD held after BS date </li></ul><ul><li>Reading entities latest available interim financial statements </li></ul><ul><li>Inquiring or extending previous written or oral inquiries with company lawyers </li></ul><ul><li>Inquiring with management of any subsequent events. </li></ul>
  5. 5. Conclusion <ul><li>When auditor is aware of subsequent events which materially affect the financial statements, he should consider whether the effect has been accounted for in the financial statements. </li></ul>
  6. 6. Effective For <ul><li>All audits commencing on or after 1 st April 2000 </li></ul>
  7. 7. AAS 34 - Audit Evidence - Additional Considerations for Specific Items <ul><li>The purpose of this AAS is to establish standards on the auditor's responsibilities, procedures and provide additional guidance to that contained in AAS 5, &quot;Audit Evidence&quot;, with respect to certain specific financial statement amounts and other disclosures. </li></ul>
  8. 8. Components of AAS – 34 <ul><li>Part A: Attendance at Physical Inventory Counting </li></ul><ul><li>Part B: Inquiry Regarding Litigation and Claim </li></ul><ul><li>Part C: Valuation and Disclosure of Long-term Investments </li></ul><ul><li>Part D: Segment Information </li></ul>
  9. 9. Part A: Attendance at Physical Inventory Counting <ul><li>Auditor must obtain sufficient appropriate audit evidence during his attendance at physical inventory counting </li></ul><ul><li>Existence and condition </li></ul><ul><li>Where its impracticable, consider alternative procedures to provide sufficient appropriate audit evidence </li></ul>
  10. 10. Part B: Inquiry Regarding Litigation And Claims <ul><li>&quot;Litigation&quot; is a lawsuit or legal action including all proceedings therein. &quot;Claims&quot; is a right to payment or right to an equitable remedy for breach of performance </li></ul><ul><li>Material effect on the financial statements </li></ul><ul><li>Communicate with the entity's lawyers and such other professionals to whom the entity engages for litigation and claims </li></ul>
  11. 11. Part C: Valuation And Disclosure Of Long Term Investments <ul><li>AS 13 </li></ul><ul><li>Valuation and disclosure </li></ul><ul><li>Ownership and existence </li></ul>
  12. 12. Part D: Segment Information <ul><li>Information to be disclosed in respect of reportable segments as given in Accounting Standard (AS)17, Segment Reporting </li></ul><ul><li>When it is material to the financial statements, he should obtain sufficient appropriate audit evidence regarding its disclosure </li></ul>
  13. 13. Effective For <ul><li>This AAS becomes operative for all audits related to accounting periods beginning on or after 1st April, 2005. </li></ul>