2. AUDIT STANDARD (Principles)
• Audit standard means a set of principles, rules
or models used as a criterion to judge the
work of an auditor.
• It is the measurement quality of audit
performed by the auditor. AICPA and ICAI have
established many audit standards.
3. Auditing and Assurance Standard
(AAS):
• Institute of Chartered Accountants of
India(ICAI) issue Statements onn Auditing and
Assurance Standard, earlier called Standard
Auditing Practices (SAP) from time to time.
• These standards must be complied with by
the auditors. ICAI has so far issued 29 ASS.
4. General Auditing Standards:
I Personal Standards:
• Technical training and proficiency as auditor :
Auditor should posses technical knowledge and
experience in auditing.
• Independence in mental attitude: His opinions
would be independent, objective and unbiased.
• Due professional care : Auditor should exercise
reasonable professional care and skill while
discharging his duties.
5. II Standards of Field work:
• Planning and Supervision: Audit work should
be properly planned , allocated among staff
and effectively supervised
• Evaluation of Internal Control : he should
evaluate the extent of the effectiveness of
internal control and internal check at all levels.
• Sufficient Competent evidence :The opinions
of the auditor must be supported by proper
audit evidences.
6. III Standards of Reporting
• Conformity with accounting standards: Audit
report shall state whether the financial
statements are presented in accordance with
GAAP
• Consistency in application of accounting
principles : Audit report shall state whether
the accounting principles have been observed
consistently from year to year.
7. • Adequacy of Information disclosed : Auditor
has to disclose all information on financial
statements which he think necessary for the
presentation of report.
• Expression of Opinion: The report of the
auditor shall contain a clear cut indication of
the character of the auditors examinations.
He has to give a clear expression of his opinion
in the report.
