PPT: Audit Evidence | Auditing and Ethics for CA Intermediate PDF Download

 Page 1


Audit Evidence
Page 2


Audit Evidence
Is Compliance of 
Auditing Standards
Mandatory while doing 
Company Audits?
Page 3


Audit Evidence
Is Compliance of 
Auditing Standards
Mandatory while doing 
Company Audits?
Sec. 143(2) of the Companies Act, 2013
Basic Requirements as to Financial Statements
The Auditor shall make the Report after taking into 
account, the following –
?the provisions of the Act,
?the accounting and auditing Standards,
?matters which are required to be included in the 
Audit Report under the provisions of the Act / Rules 
/ Order u/s 143(11)
?best of his information and knowledge.
Page 4


Audit Evidence
Is Compliance of 
Auditing Standards
Mandatory while doing 
Company Audits?
Sec. 143(2) of the Companies Act, 2013
Basic Requirements as to Financial Statements
The Auditor shall make the Report after taking into 
account, the following –
?the provisions of the Act,
?the accounting and auditing Standards,
?matters which are required to be included in the 
Audit Report under the provisions of the Act / Rules 
/ Order u/s 143(11)
?best of his information and knowledge.
Sec. 143(9)/ (10)
- Sec. 143(9) - Every Auditor shall comply with the
Auditing Standards.
- Sec.143(10) - The Central Government may
prescribe the Standards of Auditing, as
recommended by the ICAI, in consultation with and
after examination of the recommendations made by
the National Financial Reporting Authority.
Till such Auditing Standards are notified, Standards
of Auditing specified by the ICAI shall be deemed to
be the Auditing Standards.
Page 5


Audit Evidence
Is Compliance of 
Auditing Standards
Mandatory while doing 
Company Audits?
Sec. 143(2) of the Companies Act, 2013
Basic Requirements as to Financial Statements
The Auditor shall make the Report after taking into 
account, the following –
?the provisions of the Act,
?the accounting and auditing Standards,
?matters which are required to be included in the 
Audit Report under the provisions of the Act / Rules 
/ Order u/s 143(11)
?best of his information and knowledge.
Sec. 143(9)/ (10)
- Sec. 143(9) - Every Auditor shall comply with the
Auditing Standards.
- Sec.143(10) - The Central Government may
prescribe the Standards of Auditing, as
recommended by the ICAI, in consultation with and
after examination of the recommendations made by
the National Financial Reporting Authority.
Till such Auditing Standards are notified, Standards
of Auditing specified by the ICAI shall be deemed to
be the Auditing Standards.
Audit Risk
Inherent 
Risk
Control 
Risk
Detection 
Risk
Risk of Material Misstatement