ICAI has released various Revised/ New Standards on Auditing (i.e. SA 700, SA 701, SA 705, SA 706, SA 260 & SA 570), vide Announcement dt. 17/05/2016, as under:
Revised SA 700, Forming an Opinion and Reporting on Financial Statements
SA 700 explains the auditor’s responsibility to form an opinion on the financial statements, including the form and content of the auditor’s report to be issued after audit of the financial statements.
The requirements of SA 700 are aimed at addressing an appropriate balance between the need for consistency and comparability in auditor reporting globally and the need to increase the value of auditor reporting by making the information provided in the auditor’s report more relevant to users. This SA promotes consistency in the auditor’s report, but recognizes the need for flexibility to accommodate particular circumstances of individual jurisdictions.
SA 700 is effective for audits of financial statements for periods beginning on or after 01/04/2018.
ICAI’s Revised SA 700: Forming an Opinion and Reporting on Financial Statements
SA 701: Communicating Key Audit Matters in the Independent Auditor’s Report
SA 701 explains about the auditor’s responsibility to communicate key matters relevant to forming the auditor’s opinion/ report, to provide greater transparency about the audit that was performed. SA 701 is intended to address both the auditor’s judgment as to what to communicate in the auditor’s report and the form and content of such communication.
SA 701 is effective for audits of financial statements for periods beginning on or after 01/04/2018.
ICAI’s New SA 701: Communicating Key Audit Matters in the Independent Auditor’s Report
Revised SA 705: Modifications to the Opinion in the Independent Auditor’s Report
SA 705 explains about the auditor’s responsibility to issue an appropriate report in circumstances when the auditor concludes that it’s necessary to issue a modified audit report (i.e. a qualified opinion, an adverse opinion or a disclaimer of opinion) on the financial statements.
SA 705 is effective for audits of financial statements for periods beginning on or after 01/04/2018.
ICAI’s Revised SA 705: Modifications to the Opinion in the Independent Auditor’s Report
Revised SA 706: Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
SA 706 explains about the additional communication in the auditor’s report when the auditor considers it necessary to draw users’ attention to important matter(s) presented/ disclosed in the financial statements which are fundamental to users’ understanding of the financial statements; or any matter(s) other than those presented/ disclosed in the financial statements which are relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report.
SA 706 is effective for audits of financial statements for periods beginning on or after 01/04/2018.
ICAI’s Revised SA 706: Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
Revised SA 260, Communication with Those Charged with Governance
SA 260 explains about the auditor’s responsibility to communicate with those charged with governance in an audit of financial statements, irrespective of an entity’s governance structure or size. SA 260 does not deal with requirements regarding the auditor’s communication with an entity’s management or owners unless they are also charged with a governance role.
SA 260 is effective for audits of financial statements for periods beginning on or after 01/04/2017.
ICAI’s Revised SA 260: Communication with Those Charged with Governance
Revised SA 570, Going Concern
SA 570 explains about the the auditor’s responsibilities on determination of ‘going concern’ and the implications for the auditor’s report on the financial statements which have been audited. The Auditor’s responsibilities exist even if the financial reporting framework does not explicitly requires from the management to make a specific assessment of the entity’s ability to continue as a going concern.
SA 570 is effective for audits of financial statements for periods beginning on or after 01/04/2017.
ICAI’s Revised SA 570: Going Concern
Related Posts:
ICAI’s Standards on Auditing (SA, SQC, AROS/ AAS, SRE, SAE, SRS)
ICAI’s Implementation Guide for Revised SA 570 on Going Concern
ICAI’s Implementation Guide on Revised SA 700, 705 and 706
Applicability Date for Revised SA 700, SA 705, SA 706: ICAI Clarifications
What about applicability of SA 700 report format for ca final may 17 exam? old or new which provided in practice manual?