Page 22 - DCOM509_ADVANCED_AUDITING

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Unit 2: Auditing Standards and IFRS

Unit 2: Auditing Standards and IFRS Notes

CONTENTS
Objectives
Introduction

2.1 Indian Auditing Standards
2.1.1 International Response to Auditing Needs
2.1.2 India’s Response to Auditing Needs

2.1.3 Rationale of Auditing Standards
2.1.4 Evolution of Auditing Standards
2.2 Importance or Relevance of Auditing Standards
2.2.1 Relevance for Indian Accounting Standards
2.2.2 Compliance with Auditing Standards

2.3 Auditing Standards–Setting in India
2.3.1 International Harmonization of Auditing Standards
2.3.2 Compliance with Auditing Standards

2.4 International Financial Reporting Standards (IFRS)
2.4.1 The Evolution of Accounting Standards
2.4.2 The Challenges and Opportunities of IFRS
2.4.3 Standards of IFRS
2.5 Summary

2.6 Keywords
2.7 Review Questions
2.8 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the concept of Indian Auditing Standards
 Understand the relevance or importance of Auditing Standards
 Analyze the setting of auditing standards in India

 Describe the concept of International Financial Reporting Standards

Introduction

As the trade and commerce grew extensively globally, the involvement of public money therein
also increased manifolds. This in turn created a demand from the investors to have the accounts
of the business ventures examined by a person independent of the owners and management of

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