Particulars Standards on Auditing

SA 800 SA 805 SA 810

Name Audit of FS prepared as per Special Audit of Single FS & Specific Elements, Engg. to Report on Summary FS
Purpose Frameworks (SPF) Accounts or Items of a FS

Who? Auditor Auditor of Complete Set of F.S. Auditor

Audit of? FS Single FS & Specific Elements, Accounts or Summary FS

Items of a FS
FRF? SPF Applicable FRF Applied criteria
Acceptance? FRF is acceptable. FRF is acceptable & auditing complete set of FS. 1. When auditing FS as per SAs
2. Criteria is Acceptable [Nature, Purpose, Info
Needs, Not misleading] (Can presume it
acceptable)
3. Agreement with mgt (responsibility)

Stat auditor? Yes, can audit Yes, can audit Shall ordinarily accept
Special Points SA 320/260/700 Audit evidence, Inter Related, Materiality (lower) Disclose summarised nature, Necessary info,
of Procedures disclose criteria, prepared as per criteria, &
audited fs available w/o difficulty.
Opinion Give Opinion same as normal SAs Separate opinion of each Engg. Give Opinion - Unmodified -
Published Together with differentiation Summary FS are fair summary of audited FS, as
per applied criteria (change word if req by L/R)

Distribution? Restricted - only to intended users Auditor should not issue A/R until satisfied with Audited FS should be available to Intended users
differentiation of Summary FS
Spl Reporting? Alert readers using EOM Para that Presentation and Opinion should differentiate 1) Identify - Summary FS, Audited FS
1) FS prepared as per SPF from complete set of FS 2) Refer - A/R of Audited FS - date and opinion
2) may not be suitable for another 3) Date later of Summary FS
purpose Opinion sometimes depends on Opinion on 4) Less disclosure + Not a substitute
Complete Set of FS [DAQ]
Spl point (Modified opnion in Audited FS)

Particulars Standards on Related Services

SRS 4400 SRS 4410
Name Engg. To Perform Agreed Upon Compilation Engg
Procedure regarding Financial
Information

Who? Auditor (Should have been Practitioner not necessary to be Independent

practitioner) not necessary to be
Independent
Audit of? Specific Elements, Accounts or Items Historical Financial Info
of a FS SQC-1 applicable

FRF? As per agreed upon Procedure Applicable FRF

Acceptance? Nature of engg, Purpose, NTE of Agree terms of engg with mgt [EL Points)
specific procedures se Identification
of financial info & Limitation on
distribution
Stat auditor? Not necessarily Auditor of co. Can provide. Others can also provide
Special Points Analytical, Ext confirmation, Inquiry, Obtain Understanding (B&O, AFRF) --> Compile
of Procedures Inspection, Observation, Info --> Discuss Significant judgments --> Read
Recalculation compiled info in light of understanding --> Info. is
IIU & request mgt --> Withdraw

Opinion No Assurance is provided in such a No Assurance is provided hence no expression

report. of opinion
Only Report on factual findings and
USERS draw conclusion.
Distribution? Limited/ Restricted to those parties Management
that have agreed to procedures to be
performed
Spl Reporting? 1) Identification of specific financial or 1) Identification of applicable FRF
non-financial info 2) Identification of Financial Info
2) agreed upon procedures were 3) Not Assurance engg.
performed 4) Not audit or review
3) Identification of purpose 5) No opinion
4) Factual findings
5) No opinion +
Precautions: Not audit or review (no
assurance), Other procedures --> Documentation (Significant matters, Final
other matters, Report is restricted version, reconciliation)
(parties/elements checked)
Particulars Standard on Review Engagement
SRE 2400 SRE 2410
Name Engg to Review Historical FS Review of Interim Financial Info. Performed by
the Independent Auditor of Entity
Who? Practitioner Auditor
Audit of? Review of Historical FS providing Interim Financial Info.
lower level of assurance
FRF? FRF or SPF applicable FRF
Stat auditor? Not Allowed YES - done by Independent/Stat Auditor only
Acceptance/ Don't accept if Practitioner not
Precautions satisfied:
1. No Rational Purpose
2. Ethical Requirements not satisfied
3. Info needed unavailable/unreliable
4. Doubt over mgt Integrity
5. Mgt imposes Limitation on Scope
[In*2 LOS-ER Not Satisfied] +

Preconditions similiar to audit

Duties/ 1. Materiality in a Review of FS. Procedures to Understand Entity
Procedures/ 2. Obtain understanding of entity & 1. Read documentations [PY Audit/Review of
Performing applicable FRF prior interim periods]
engg. 3. "Inquiry" and "Analytical 2. Read recent annual comparable prior period
procedures" [Importance] interim financial info.
4. Procedures to address specific 3. Significant risks
circumstances 4. Corrected/Uncorrected MMs
[550/240/250/570/600/620] 5. Consider Materiality
5. Perform other procedures, if
necessary, in circumstances Inquiries, Analytical & Other procedures
1. Read minutes
2. Matters giving rise to modification in previous
audit/review
3. Communication with component auditor
4. Inquiry with Mgt
5. Analytcial Procedures
Opinion Limited Assurance and express Limited Assurance and express Conclusion (not
Conclusion (not Opinion). (Q/A/D) Opinion). (Q/A/D)

Spl point: If Material Uncertainty exist &

disclosed then modify report by including EOM
Para.
Spl Reporting? 1) A description of review of a review 1) A description of review of a review of FS and
of FS and its limitations. its limitations.
2) A para under heading 'Conclusion". 2) A para under heading 'Conclusion".
3) The language of assurance 3) The language of assurance conclusion is
conclusion is Negatively worded. Negatively worded.

Description of review and its

limitations, and following statements:
1) Limited assurance engg.
2) Procedures include inquiries &
analytical procedures & evaluates
evidence obtained
3) Procedures are substantially less
than audit as per SAs & practitioner
doesn't express audit opinion on FS.
Particulars Standards on Assurance Engagement
SAE 3400 SAE 3402 SAE 3420
Name The Examination of Prospective Assurance Reports on Controls at a Service Assurance Engg to Report on Compilation of Pro
Financial Information Organisation (SO) Forma Financial Information (PFFI) in a
Prospectus
Who? Auditor (Should be practitioner) Service Auditor Practitioner
Audit of? Prospective Financial Info based on 1) Description of System PFFI
Forecast or Projections 2) Design of Controls related to control
objectives
3) Operating effectiveness + TOCs + Results of
TOC (only for Type 2)
FRF? Assumptions & FRF Suitable Criteria Applicable Criteria
Stat auditor? Need not be performed Not possible
Mgt Identification/Disclosure of PFI --> Identify source of undj. Financial info & extract --
Responsibility Basis, Assumptions & Source data > PFFI Adjustments --> Present PFFI with
disclosures
Acceptance/ Intended use of Info, General/ltd Criteria is suitable & available, scope not limited Criteria suitable, Agreement with Mgt [EL points]
Precautions distribbution, PEN (Period covered,
Elements to be included, Nature of
assumptions)
Duties/ Check assumptions, PFI presented 1. Assess criteria 1. Criteria suitable?
Procedures/ as per assumptions, Assumptions 2. Determine Materiality 2. Consider materiality
Performing disclosed, Appt a/c principles 3. Understand SO's System 3. Understand compilation by mgt
engg. 4. Evidence regarding description 4. Evidence of source
5. Evidence regarding DESIGN of controls 5. No audit/review of source info --> check if
6. Evidence regarding operating effectiveness of source appropriate?
controls (Type 2 report) 6. Check extraction
7. Understand internal audit function 7. Appropriateness of PFFI Adjustments
8. Take WR 8. evaluate presentation
9. Inquire abt subsequent events 9. Read other info to identiy material
inconsistencies
Matters Matters to be considered:
affecting Engg Team (Knowledge &
Procedures Experience)
Mgt (Competence,Source of info,
extent of judgment)
Entity (Stability of business)
Presentation & A --> A/c policies
Disclosure B --> Best estimate/hypothetical
assumption
C --> change in a/c policy
D --> Date of PFI
E --> PFI is Not mislEading
Opinion Opinion as to whether results shown Give Opinion (Reasonable Assurance) Reasonable Assurance is provided.
in PFI will be achieved cannot be Can give Opinion that whether prepared as per
expressed. Applied criteria.
But Opinion whether PFI properly If Modified Opinion, check whether "Prospectus
prepared on basis of assumption & Permitted?" by L/R
Presentation as per FRF
Distribution? Restricted - Only for Intended use To user entity As per L/R
Spl Reporting? 1) Purpose and Restricted distribution Read from notes - Mostly common points 1) Identify-
2) Examination on test basis i) PFFI
3) Negative Assurance Add. matters in Type 2 Report: ii) Source of unadj financial info
4) Opinion - properly prepared and 1. Describe TOCs iii) Period
presented? 2. Controls tested --> items selected & nature of iv) Reference to Applicable criteria
5) Appropriate caveats concerning to tests 2) Reasonable Assurance Engg
achievability 3. Deviations identified (no. & nature of 3) Description of Practitioner's responsibility:
deviations) --> Express Opinion
4. Report deviations even if control objectives --> Not responsible to update/reissue report on
achieved. historical financial info. used in preparing PFFI
--> Purpose is to illustrate impact of significant
event/transn on unadjusted finacial info & not
provide assurance that actual outcome at that
date would have been as presented.