ICAI’s Implementation Guide on Revised Audit Standards (SA 700, 705 and 706)
The Auditing and Assurance Standards Board (AASB) of ICAI has issued revised edition 2018 of the “Implementation Guide on Reporting Standards (Revised Audit Standards: SA 700, 705 and 706)”, in view of new formats of audit reports having been prescribed under these audit standards revised in 2016, effective from 1 April, 2018, as under:
It may be noted that the ICAI has issued, in 2016, the revised auditor’s reporting standards i.e. Revised SA 700: ‘Forming an Opinion and Reporting on Financial Statements’, Revised SA 705: ‘Modifications to the Opinion in the Independent Auditor’s Report’ and Revised SA 706: ‘Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report’.
These standards have prescribed new formats of audit reports and have completely changed the manner of auditor’s reporting. These standards are effective for audits of financial statements for periods beginning on or after April 1, 2018. In view of the comprehensive changes which have been made by these standards, a need was felt to provide guidance to the members on these standards so that they can discharge their reporting responsibilities under these standards effectively.
Accordingly, the AASB of ICAI has come out with the revised edition 2018 of the Implementation Guides on various Standards on Auditing (SA) for the benefit of the members. First edition was issued in 2010. The Implementation Guide has been written in an easy to understand lucid language in the form of frequently asked questions (FAQs) and is quite comprehensive.