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Advanced Auditing

Notes Quality is the prime-driving factor of this whole concept. Its aim is to ensure that the members
comply with the technical standards for maintaining the quality of the attestation works they
perform.

Attestation services includes auditing, verification of financial transactions, books, accounts or
records or preparation, verification or certification of financial accounting and related statements
as defined under Sec 2(2)(ii) of the CA Act,1949 but does not include:
(i) Management consulting
(ii) Representing clients before authorities
(iii) Engagements for the compilation of financial statements
(iv) Engagements to prepare tax returns or advising clients in taxation matters

(v) Engagements solely to assist the client in preparing, compiling or collating information
other than financial statements
(vi) Testifying as expert witness and providing expert opinion on AS or applicability of certain
laws.
It is said that a professional should not only be a professional but also should be seen as
professional and to that end, it is necessary that the work carried out by him speaks for itself.
This can be achieved only by proper and satisfactory documentation.
The Institute of Chartered Accountants of India (ICAI) is a member of the International Federation
of Accountants (IFAC), and the Auditing Practices Committee (APC) of the Indian Institute is
committed to giving due consideration to the auditing guidelines issued by the International
Auditing Practices Committee of IFAC and integrating them to the extent possible with the
Indian Auditing Standards being issued by APC, in the light of conditions and practices prevailing
in India.
The Institute of Chartered Accountants of India was set up in 1949 to regulate the profession of
chartered accountancy in India. Since its establishment, the Institute has taken numerous steps to
ensure that its members discharge their duties with due professional care, competence and
sincerity. One of the steps is the establishment of the Auditing Practices Committee, or the
Auditing and Assurance Standards Board, as it is now known in September, 1982.
One of the main objectives of the Board is to issue auditing standards. Accordingly, the Board
issues Statements on Standard Auditing Practices and Auditing and assurance Standards under
the authority of the Council.

2.2.1 Relevance for Indian Accounting Standards

The need for accounting standards was felt when the enterprises and organization started altering
the accounting policies and concepts in order to achieve their profit maximization objective. In
such a case, an authorized body was set up to form accounting standards applicable for all and
keeping in mind the objective and the working criteria of the enterprises. The ICAI (Institute of
Charted Accountancy in India) formed the accounting standards for our country. At present, in
total 30 Accounting Standards are in effect in the country.

2.2.2 Compliance with Auditing Standards

While discharging their attest functions, it is the duty of the members of the Institute to ensure
that the auditing standards are followed in the audit of financial information covered by their
audit reports. If for any reason the member is unable to perform an audit in accordance with the
generally accepted auditing standards, his report should draw attention to any material

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