ICAI has come out with the Implementation Guides on various ‘Standard on Auditing (SAs)’ for the guidance and help of the auditors/ Members, including on Auditing Standards, SA-560: Subsequent Events, SA-210: Agreeing the Terms of Audit Engagements, etc.
The framework of Auditing Standards prescribe the fundamental audit principles to be followed by auditors while conducting different audit engagements. Auditors must understand and implement the Auditing Standards appropriately. The Implementation Guides to Standards on Auditing are useful tool/ support for the Auditors to understand and implement the specific requirements of the Auditing Standards.
ICAI’s Implementation Guide on ‘Auditing Standard (SA) 560: Subsequent Events’
This Implementation Guide provide practical guidance on implementation of the principles laid down in ‘Auditing Standard (SA) 560: Subsequent Events’. The SA-560 is applicable from 01/04/2009 and deals with the auditor’s responsibilities relating to subsequent events, while doing audit of financial statements. However, It does not deal with matters relating to the auditor’s responsibilities for other information obtained after the date of the auditor’s report, which are addressed in ‘SA-720: The Auditor’s Responsibilities Relating to Other Information’. However, Auditors should always keep in mind that such other information also may bring to light a subsequent event, which is well within the purview of SA-560.
ICAI’s Implementation Guide on ‘Auditing Standard (SA) 210: Agreeing the Terms of Audit Engagements’
This Implementation Guide provides practical guidance on implementation of the principles laid down in the ‘Auditing Standard (SA) 210: Agreeing the Terms of Audit Engagements’. The SA-210 is applicable from 01/04/2010 and deals with the auditor’s responsibilities in agreeing the terms of the audit engagement with management or those who are responsible for the corporate governance, as the process includes establishing that certain preconditions for an audit, responsibility for which rests with management. SA-220: Quality Control for an Audit of Financial Statements, deals with those aspects of engagement acceptance that are within the control of the auditor.