SA 810 REPORT ON SUMMARY OF FINANCIAL STATEMENT

Appropriate to Accept Engagement to

Form an Opinion Express through Written Report
Report

Elements of Report

1)Title

Determine Acceptability of Obtain Agreement of Agree with Management 2)Addressee

Criteria Manangement
3)Introductory Paragraph

4)Management Responsibility

5)Auditor's Responsibility

6)Opinion

7)Signature

If Unacceptable Criteria
8)Date

Other matter
Preparation of Financial Make Audited Financial Statement
Not to Accept Engagement To Include Auditor's Report
Statement available to Intende users Emphasis of Matter
 SA 805 AUDIT OF SINGLE FINANCIAL STATEMENTS AND SPECIFIC ELEMENTS OF
FINANCIAL STATEMENT

Acceptance of Engagement Planning and Performance of that Engagement

Framing an Opinion and Reporting

Comply with SA 200 Comply with SA 210

Apply SA 700
Complete Set = Adverse/Disclaimer

Express Separate Opinion on Such

Engagement
Can be Unmodified if

Presentation of Single Financial

Statement Differentiate from Complete
1)Auditor not Prohibited
set of Financial Statement
As per SA 700 Connot be Unmodified

YES NO
2)Both the Reports are not
Published Together
Auditor should ask
Ok Management to Rectify the
3)Specific Element dose not Situation
Constitute Major portion

Opinion on Complete set

Modified/Emphasis Of Matter Para

Determine Effect on Single Financial Statement

 SA 800 AUDITS OF FINANCIAL STATEMENTS
PREPARED IN ACCORDANCE WITH SPECIAL PURPOSE Understanding Of
FRAMEWORK

Address Appropriately

Planning and Performance of Forming an Opinion and

Acceptance of Engagement
Engagement Reporting

Apply Requirements of SA
700

Include Emphasis of Matter

Paragraph

Purpose for which Financial Statements are Prepared

Intended Users

Steps taken by Management to Determine Applicable

Financial Reporting Framework
 SA 720 : THE AUDITOR'S RESPONSIBILITY IN RELATION TO OTHER INFORMATION IN DOCUMENTS CONTAINING
AUDITED FINANCIAL STATEMENT

Respond Appropriately when Documents Containing

Contains
Audited Financial Statement Auditor's Report
Information that

Undermine Credibility

Reading other information MateriaL Inconsistency Material misstatement of facts

Obtain Prior to Date of Auditor's Report Discuss with Management

Consult with Qualified Third party
Management Refuses to Correct
Prior to Date of Auditor's Report

Management to Make Revision

Notify TCWG and take Appropriate Action

Other Information Finacial Statement

Refused Accepted

Ok

1)Communicate with TCWG

2)Withdraw Engagement Accepted Refused
3)Other Matter Paragraph

Ok Subsequent to date of auditor's report

Modified Opnion

Other Information Financial Statement

Refused Accepted SA 560

1)Communicate with TCWG Ok

2)Withdraw Engagement
3)Other Matter Paragraph
 SA 710 : CAMPARATIVE INFORMATION-
CORRESPONDING FIGURES AND
CAMPARATIVE FINANACIAL STATEMENT

Comparative Information

Current Period
Refer If Prior Contains Other Than
Period Unqualified Opinion
Corresponding Figures Comparative Financial Statement
Contains Material
Misstatement
Previous Period

Financial Statements Are Auditor's Opinion Refer to Each

Not Audited Period for which Financial
Auditor's Opinion Refer to Current
Statements are Presented
Period Only Misstated

Inform Predecessor Auditor

Prior Year Statement Amended

Written Representation [ A Specific Written

Yes No
Audit Procedure Representation Regarding Prior Period Items Disclosed
In Current Year ]

Ok
Report In Current Period

Agree with Amount and Other

Accounting Policies are Consistent Changes in Accounting Policies Are
Disclosure Presented in Prior Period
Properly Disclosed and Presented
 SA 706 : EMPHASIS MATTER PARAGRAPH AND OTHER
PARAGRAPH IN THE INDEPENDENT AUDITOR'S REPORT

Emphasis of Matter Paragraph

Other Matter Paragraph

Refers to Matter Appropriately Presented or

Disclosed in Financial Statement
Matter Other than those Disclosed in Financial
Statement

Is of Such Importance

Relevant to User's Understanding

Fundamental to User Understanding

Clear Reference of Matter Being Auditor's Opinion not Modified in

Pragraph within Separate Section
Emphasized Respect of Matter Emphasized
 SA 705 : MODIFICATIONS TO
OPINION IN THE

Auditor's Report-Modified

Objective(Express an Opinion when)

Inability to Obtain Sufficient Appropriate Audit

Financial Statements are Materially Misstated Evidence (Therefore may be Materially
Misstated)
OR

Misstatement

QUALIFIED ADVERSE DISCLAIMER

Disagreement With Management Disagreement With Management Limitation of scope

Limitation of Scope

M YES M YES M YES

P NO P NO P YES

M = Material

P = Pervasive
 SA 701 : COMMUNICATING KEY
AUDIT MATTERS IN THE Audit of Listed Entities
Disclaims on Opinion
Prohibition INDEPENDENT AUDITOR'S Applicability
REPORT

Required by Law or Regulation

Circumstances when Auditor Decides

Area of Higher Assessed Risk of

Material Misstatement

Enhance Communicative Value of Additional Information to Intended Communicating Key

Auditor's Report Users AUDIT MATTERS

Effect of Audit of Significant Events

Significant Auditor's Judgement

Substitute
Relating to Accounting Estimates

1)Disclosure
2)Auditor Expressing a Modified
Opinion
3)Reporting in Accordance with SA
570(Going Concern)
4)Separate Opinion on Individual
Matters
 SA 700 : FORMING AN OPINION
AND REPORTING ON FINANCIAL
STATEMENTS

Form Opinion Based on Audit Evidence Express Opinion through a Wriitten report

Responsibility for Financial

Auditor's Responsibility Key Audit Matters Basis for Opinion Going Concern Title Addressee Auditor's Opinion
Statement

Management SA 701 SA 570

1) Resonable Assurance

State that Financial Statement Identify Title of Each

Applicable Financial Identify the Entity Refer Accounting Policy Specific Date or Period
are Audited Statement
2)Obtain Understanding of Internal Control Framework Accordance with SAs

3)Evaluate Appropriateness of Accounting Policy Sections that Refers Auditor's

and Resonableness of Accounting Estimates Internal Control Responsibility

4)Conclude on Appropriateness of Management

Auditor is Independent 1)Prepared in Accordance with a Fair Presentation Framework
use of Going Concern
Ability to Continue as Going
Concern
Audit Evidence is Sufficient
and Appropriate

2)Prepared Accordance with Compliance Framework

 SA 620 : USING WORK OF
AUDITOR'S EXPERT

Accounting

Whether to Use Work of Auditor's Adequacy of Work of Expert for

Other than Auditor
Expert Auditor's Purpose

Auditing

Competence Capability Objectivity

Audit Procedures

Determining the Need

Nature of Work
Relevance and Resonableness of
Agreement with Auditor's Expert
Expert's Findings or Conclusions

Nature Scope and

Risk of Material Misstatement
Objective If Involves Significant
Assumptions

Adequacy
Role and Responsibility Relevance Reasonableness Significance of that Expert's Work

Relevance, Completeness and Accuracy of Source

Data
Nature Timing and Expirience with Previous Work
Extent of Communication Performed by Expert

Need to Observe
Expert Subject to Quality Control
Confidentiality
Policy
Requirement

Reference to The Auditors Expert In The Auditors Report

Yes NO

Modified Opinion Unmodified Opinion

 SA 600 : USING THE WORK OF ANOTHER AUDITOR

Consider
Principal Auditor Materiality of Portion
Other Auditor

Degree of Knowledge
1)Responsibilty towards Work of Another Auditor
Proffesional Competence

Risk of Material Misstatement

2)Determining how Work of Other Auditor will

Consider
Affect the Audit
Obtain Evidence to Evaluate Adequacy
Performance of Additional Procedure

Advise

Procedures for Identification of Inter Significant Accounting/Audfiting and

Areas Requiring Special Consideration
Component Transaction Reporting Requirement
 NOT Sufficient

SA 580 : WRITTEN REPRESENTATION Evidence

NOT Appropriate

Written Representation from

Date
Management/TCWG Near as Practicable but Not After Date of Audit Report

Representation Letter Addressed to Auditor

Form

Fulfillment of Responsibility for Preparation of Financial

Statement and for Completeness of Information Provided to To Respond Appropriately Support other Audit Evidence
Auditor

Inconsistence with Other Audit Evidence Not Reliable Not Provided

Perform Audit Procedures Determine Possible Effect on Opinion

Re-Evaluate
Discuss with Take Appropriate
Integrity of
Management Actions
Management

Resolved Unresolved

Reconsider the
Assessment

Disclaim Opinion
 SA 570 GOING CONCERN

Risk Assessment Procedures and Related

Activities

Obtain Evidence
Objectives

Conclude on Material
Evaluate Management's Assessment Uncertainity

Auditor Management

Report

Maker Judgement About Inherently Uncertain

Future Outcomes of Events
For the Period Beyond the Period
Responsibility Implications(Report)

Explicit Requirements
No Explicit Requiremet
Significant doubt Conclusion

Evaluate sufficient and appropriate Specific Assessment and

Additional audit evidence Disclosure to be Made
procedures
Degree of Judgement About
Size of Entity External Factors
Compliance Uncertainity Future
Fair presentation
framework

Adequacy of
disclosure
 SA 560 SUBSEQUENT EVENTS

Existence of Evidence

At the Date of Financial Statement After the Date of Financial Statement

31st March 30TH June

Date of Financial Statement Date of Auditor's Report

Obtain Audit Evidence Respond Appropriately If they had been known at

that Date,may have Caused the Auditor to
Ammend the Audit Report

Require Adjustment of Disclosure In

Financial Statemen
 SA 550 : RELATED PARTIES

Related Parties

Relationship Transactions

Not Independent of Each Other Normal Course of Bussiness

REQUIRES

Management Auditor

Perform Audit Procedure Obtain Understanding so as to

Follow Share Related Party Information

Risk of Material Misstatement

Specific Accounting and Disclosur Identification Assesement

Requirement
Maintain Alerteress While Achieve True and Conclude not
Reviewing Fair Presentation Misleading

Bank Legal and Third Party Minutes of Meetings of

Other Documents
Confirmation Shareholders/TCWG
 SA 540 : AUDITNG ACCOUNTING
Obtain Evidence in Context of Applicable Written Representation Significant Assumptions are
ESTIMATES INCLUDING FAIR VALUE
Financial Reporting Framework Resonable
ACCOUNTING ESTIMATES AND
RELATED DISCLOSURE

Basis for Auditor's Conclusion

Documentation

Indicator of Possible Management

Bais

Accounting estimates
Related Disclosure

Obtain Understanding of
Perform Risk Assessment Procedure

In Accordance with Financial Reporting Framework

Identify Risk of Material Misstatement

How management
Requirements of financial
identifies needs for
reporting framework
estimates
1)Relevant Controls
To Evaluate Adequacy
2)Expert Recognition and Measurement Criteria
3)Assumption
4)Change in Method

Management Decision Selected Measurement Basis

Indication of Possible Management's Bias

Review of Outcome of Prior Period for Current Period

NO YES

Do not Themselves
Ok
Constitute Misstatement
 SA 530 : AUDIT SAMPLING

Use of Audit Sampling

To Provide Reasonable Basis to Draw Conclusion

SAMPLE

Audit Procedures

Each Selected Item

POPULATION

Applicable

YES NO

Replacement Item

Able to Apply Unable to Apply

Each Unit has a Reducing sampling

Purpose Characteristic
Chance of Selection risk

Treat as Deviation

Evaluate Possible Effects

Obtain High Degree of

Treated as Anomaly Not Representative
Certainity
 SA 520 : ANALYTICAL PROCEDUERS

Audit Evidence
Investigate Result of Analytical Procedure

Relevant Reliable

Substantive Analytical Design and Perform

Fluctuation/Inconsistent Relationship

Determine Suitability Reliability of Data Develop Expectations of Record Determine Differences

Inquiry of Perform Other
Management Audit procedure

Source

Obtain Relevant Audit

Evidence
Taking Into Account Comparability

Nature

Risk of Material
Test of Details Relevance of
Misstatement
Information
 SA 510 : Initial Audit Engagement

Opening Balances

Contains Material Misstatement Appropriate Accounting Policy

Affecting Current Period Financial Consistently Applied

Statement

REQUIREMENTS

Audit Procedures Audit Conclusions And Reporting

Unable To obtain
1)Read

Opening Balance

Qualified/Disclaimer
Most Recent Financial
Predecessor Auditor's Report
Statement

Material Misstatement

2)Correctly Brought Forward Qualified/Adverse

3)Appropriate Accounting Policy

Not Consistently Applied/Accounted

Consistently Applied in Current Period's Financial
Consistency Of Acccounting Statement And Changes Have Been Made Properly
Policies Accounted for and Adequately Presented and Disclosed

Qualified/Adverse Opinion

Modification-Relevent for Current Period

Modifiaction of Opinion (PREVIOUS YEAR)
Relevant Information in
Evaluate the Effect for Current Year
Predecessor Auditor's Report

Modify
 SA 505 : EXTERNAL CONFIRMATIONS

External Confirmation Procedure

TO OBTAIN

Audit Evidence

SA 500 SA 330 SA 240

Reliability of Audit Evidence Design and Implement

Design confirmation Request to Obtain Additional
Corraborative Information

Independent Sources Overall Responses

Further Audit Procedure

Directly by Auditors

More Pervassive Audit Evidence

Documentary Form

Result
External Confirmation Procedure Management's Refusal to Send Confirmation
Request

Information to be Confirmed
Response
Reason for Refusal
Non Response

Resonable Unreasonable
Appropriate Confirming Party
Perform Alternative Procedure
Reliable Not Reliable
Evaluate
Implication Communicate With Team
Members

Design Confirmation Request

Evaluate Implication on Assessment
Alternative Audit
Procedure
Auditor's Opinion
 SA 500 : AUDIT EVIDENCE

What Constitutes as Audit Evidence Auditors Responsibility to

Design Perform

Audit Procedures

Audit Evidence

REQUIREMENTS

Selecting Items for Testing (effective in

Sufficient and Appropriate Information to be Used Inconsistency/Doubts over reliability
meeting the purpose)

Consider

Test of Controls Test of Details Determine

Relevence Reliability

Modification Additions

Work of a Management Expert Work Produced by Entity

To Resolove Matter Consider Effect

Evaluate
Evaluate
Obtain Understanding of Work
Accuracy and Completeness

Suffiiently Reliable for Auditor's

Purpose

Sufficiently Precise
Appropriateness for Relevant Assertion Competence Capability and Objectivity
 SA 450 : EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT

Evaluate Effect of

Identied Misstatement Uncorrected Missstatement

1) Assess the Materiality

Revision of Overall Audit Stratergy and Opinion (consider)

Size and Nature Circumstances of Occurrence

Identified Misstatement is
Material
2) Communicate With TCWG
Communicate on Timely Basis to Management

Its Effect and Request TCWG Uncorrected Misstatements of

to Get it Corrected Prior Periods

Management Made Management Refused to

Corrections Correct
3)Written Representation from Management/TCWG

Obtain Understanding Of
Ok
Reason

Whether they Believe the Effects of Uncorrected Misstatement

are Immaterial
 SA 330 : THE AUDITORS RESPONSES TO ASSESSED RISKS

AUDIT PROCEDURES TO OBTAIN AUDIT EVIDENCE

Risk Assessment Procedure

Matter of Auditor's Judgement Further Audit Procedure

To Understand the Entity and its

Enviornment(including internal control)

Test of Controls
Substantive Procedure

To Assess the Risk of Material Misstatement

Test of Details
Operating Effectiveness of Controls

Analytical Procedure
Nature Timming and Extent of Audit Procedure

External Confirmation

Nature Timing Extent

Financial Statement Closing

How Controls Were Applied Frequency

Particular Point of Time

Information available only in electronic

Cannot be stored
mode
By Whom They Were Applied Length of Time
OR

Consistency With Which they

Rate of Deviation
were Applied Throughout the Period

Relevence and Reliability

Period of time Point of time
 USING AUDIT EVIDENCE OBTAINED IN PREVIOUS AUDITS

Risk
Effectiveness

Characteristics of controls
Lack of Change Of Material Misstastement
Controls and its Application
IT Controls
Other Elements of Control Mannual Automated
(Data Acesses Control)
Personnel Manages

Process Risk due to Changing

Extent of Reliance on Control
Circumstances

Control Environment Maintaining of Controls Risk Assessement Process

 SA 320 : AUDIT MATERIALITY

Materiality in Planning and Performing an Audit

Individually or in Aggregrate Could Reasonably be Expected to Influence Users Decision

● Judgement is Affected by Size or Nature of Misstattement

Auditor's Determination

Professional Judgement
(Auditor's Perception)

Understand that Financial Statement are Recognise Inherent Uncertainities in Reasonable Knowledge of Bussiness and
Make Reasonable Economic Decisions
Prepared to Levels of Materiality Measurement Economic Activities

REVISION OF MATERIALITY

Becoming Aware of Information that

Could Have Caused

Determine a Different Amount

DOCUMENTATION

Materiality for Whole Financial

Materiality Level Performance Materiality Revision
Statement
 SA 315

Auditor's Responsibility to Identify and Assess Risk of Material Misstatement

RISK ASSESSMENT PROCEDURE

UNDERSTANDING
●Basis for Identification of Risk

Professional
Judgement
Not Related
Obtained Obtaining Environment Entity Internal Control

Related

Review of Financial Relevant

Client Acceptance Other Engagement Previous Expirience It Includes Accounting Policy Objective and Stratergies
Performance

Inquires of Manangement Analytical Procedures Observation and Inspection

Determine Changes Occurred

Susceptibility

Discuss

Engagement Team Members

 Identify Risk

Financial Statement Level Assertion Level

ASSESS
●What Can Go Wrong

Consider Likelihood Of Misstatement

Risk that Require Special Audit Risk for Which Substantive Procedures
Consideration Alone Do not Provide Sufficient
Appropriate Audit Evidence
 SA 300 : PLANNING AN AUDIT OF FINANCIAL
STATEMENTS

Plan Audit of Finanacial Statement

ENGAGEMENT TEAM MEMBERS

PRELIMINARY ENGAGEMENT ACTIVITIES
●Plan and Participate in Discussion

●Continuance of Client Relationship and Specific

Audit Engagement Engagement
● Evaluating Compliance
●Understanding of Terms
PLANNING ACTIVITIES

Overall Audit Strategy

DOCUMENTATIONS

SCOPE PLAN DIRECT RESULTS

1)Overall Audit Stratergy

●Reporting Objective 2)Audit Plan
●Of Preliminary 3)Significant Changes Made
●Nature Timming And
●Engagement ●Engagement Team Engagement
Extent Of Available
Activities
Resources
 SA 299 : JOINT AUDITOR

Responsible for Work Allocated to Them

Auditors Jointly and Severally Responsible for Work not

Divided

Responsible for Nature Timing and Extent of Audit

Procedure

Identifiable Units or Specified Arears

Adequately Documented and Preferably
Division of Work Communicated

If Division is Not Possible

then Refer to Items of Assets and Liability

By Mutual Discussion

Co-ordination Reporting Requirements

Matters Relevant to Areas of

Responsibility of Other Joint Auditor

Agreement Disagreement

Express Own Opinion Through Separate

Ok
Communicate Before finalization Report

Not Bound by Views of Majority

 SA 265 :COMMUNICATING DEFIIENCIES IN
INTERNAL CONTROL TO THOSE CHARGED
Discription of Deficiencies and Explainations of Potential
WITH GOVERNANCE AND MANAGEMENT
Effects

Identify Significant Deficiciencies of

Auditor Communicate Appropriately in Writing to
Sufficient Importance

Sufficient Information to Understand the Context of

Communication

Management TCWG

Significant Deficiencies in Internal Significant Deficiencies in Internal

Control Control

The Auditor Has Communicated or

Intends to Communicate to TCWG
On Timely Basis
Unless it Would be in Appropriate to
Communiacte Directly to Management
 SA 265 (1/4/10) COMMUNICATING
DEFIIENCIES IN INTERNAL CONTROL TO
Auditor THOSE CHARGED WITH GOVERNANCE AND Discription of Deficiencies and Explainations of Potential
Identify significant deficiciencies of MANAGEMENT Effects
sufficient importance

Communicate Appropriately in Writing to

Sufficient Information to Understand the Context of

Communication

Management
TCWG

Significant Deficiencies in Internal

Control
Significant Deficiencies in Internal Control

on Timely Basis

The Auditor Has Communicated or

Intends to Communicate to TCWG
Unless it Would be in Appropriate to
Communiacte Directly to Management
 SA 260 : COMMUNICATION WITH THOSE CHARGED WITH
GOVERNANCE

Objective

Communicate Obtain Provide Promote

NOT LISTED LISTED

(To TCGW) Two Way Communication

(From TCWG)
Timely Significant Understand Matter and
Responsibility of Auditor Given Beside Gvernance info Relevant to
Observations Arising from Develop Constructive
Audit
Audit Working Relationship

Form , Timming and Expected

Complain With Ethical
General Count of
Requirement
Communication

Circumstances that Affected

Form and Content of Auditor's Related Safeguards Evaluate Adequacy
Report

All Relationships- My
Significant Difficulty Reasonably be Thought to bear
on Independence
Adequate Not Adequate

Significant Qualitative Aspect Accounting Policy

of Entity's

Accounting Evaluate Effect on

Other Significant Matters Practices Auditor's
Relevant to Oversight to Assessment
Financial Reporting Process Accounting
Estimates

Oral Written

● Significant
Include in Audit Findings
Documentation ● When Oral is
Inadequate
 SA 250 : Consideration Of Law And Regulation In an Audit of Financial Statement

Consider Law and regulation

Effect Responsibility

Management Auditor P.T.O

Constitute Legal and Regulatory

Framework

Not Responsible for Preventing Non-

Ensure Compliance
Compliance
Direct Effect Indirect Effect

Cannot be Expected to Detect Non-

Compliance
Provisions Under Which
Reported Amount Disclosure in FS Entity is Allowed to Conduct
its Bussiness

Potential Effects of Inherent Limitation

on Auditor Ability

Non compliance

Non Compliance
Many Laws
May Involve
Fines Litigations Other consequenses

Relating to
Operations

May have material effect on FS

Not Captured in Concealment Collusion Forgery Misrepresentation
System Relevant to
Financial Reporting
 Inquiry of management

1)Audit Evidence of Compliance With Provision Having

Direct Effect
Inspecting correspondence with relevant licensing
or regulatory authority

OBJECTIVES
2)Perform Audit Procedure to Identify Instances of Non
Take Written representation of management,that all know instances have been disclosed to
Compliance
auditor

3)Respond Appropriately to

Non-Compliance
Suspected non-compliance

Discuss with management

Not obtained
Provided is sufficient to support that entity is in
compliance

Evaluate implication of non-compliance

Effect may be material

Appropriate action
Legal advise
 AUDIT DOCUMENTATION

SA 230

Audit Documentation

Requirements Final Audit File

Not to Delete or Discard Before

Documentation
the End of Retention Period
Nature Objective and Purpose
Sufficient to Enable Expienced
7 years
Auditor Having no Previous
Connection to Understand

Evidence Nature,Timing and Extent of

Result of Audit Procedure/Conclusion Significant Matters Arising
Additional Purpose Audit Procedure Performed

Achievement of Overall Identifying Characteristics of Documentation of Significant Document; how Auditor

Objective Specific Items or Matters Tested Matters Discussed with Addressed the Inconsistency

Those charged
Management
Who Performed? with
Retain Record of
Assists Enables
Significant Matters
Audit Planned and Performed in Date of Completion
Accordance with
Quality Control Review(SQCI)
Engagement Team
Who Reviewed?
Requirements
Sa
External Inspection
Legal
Regulatory Members for Engagement Team
Responsible for Supervision
Engagement Team to be
Accountable for its Work

Matters Arising After the Date of

Departure from relevant requirement
Auditor's Report

1)Alternative Procedures Performed

Document

2)Aim Achieved

3)Reason for Departure

New Procedure
When and Reviewed by
Circumstances Encountered Performed
Whom
Evidence Obtained
 SA 220 : QUALITY CONTROL FOR AN AUDIT OF FINANCIAL STATEMENTS

Quality control for Audit of Financial Statements Responsibility of the Engagement Quality control Reviewer

Management Auditor
Evaluation Consider Documentation

1)Engagement Terms
1)Discussion of Significant
Evaluation of Firms Procedures
Matters
Independence Performed
Implement Quality Control Procedure at
Establish and Maintain a System of
Engagement Level to Provide Assurance
Quality Control,Policy and Procedure Review' Completed
2)Consultation Before Auditors
2)Review
Report

Contentious Matter Unaware of

Unresolved Matters
Financial Statement

Difference in
Conclusion not
Opinion
Comply Report Issued Appropriate
Proposed Auditor's Report

Audit Report is Appropriate

Audit Complies 3)Documentation
1)Professional Standard Documentation(Significant
Appropriate Judgement)

1)Standards

Conclusion
2)Requirement
2)Requirements

Legal Regulatory Legal Regulatory

 SA 200 : OVERALL OBJECTIVES OF THE INDEPENDENT AUDITOR AND THE CONDUCT OF AN AUDIT IN
ACCORDANCE WITH STANDARDS ON AUDITING

PTO

PTO

Audit of financial statement

General Responsibility of Independent
Auditor

In Accordance with Confidence of User Increases

Express an Opinion

SA
Ethical Requirement
Accordance with FInancial
Responsibility on Prepared In all Material Respect
Reporting Framework

Auditor Management

Sufficient Appropriate
Professional Skepticism Professional Judgement
Audit Evidence

YES NO

Opinion

Resonable Assurance (YES) Absolute Assurance (NO)

Audit Evidence

Sufficient Appropriate

Free from material misstatement

FAILURE TO ACHIEVE Modify

Documentation
OBJECTIVE Requires Auditor
Significant matter
●Prevents from achieving overall Withdraw From Engagement
objective
 SA 210 : AGREEING THE TERMS OF AUDIT ENGAGEMENT

Use by Management of an
Acceptable Financial
Responsibility
Reporting Framework
Preconditions for audit

Agreement of Management to
Premise on Which Audit is
Conducted
Terms of Engagement
Management Auditor

1) PREPARATION OF
FINANCIAL STATEMENT
Audit Engagement Letter
●Financial Reporting Framework AcceptableFfinancial
Reporting Framework

2)INTERNAL CONTROL Objective and Scope of Audit

●Free from Material of Financial Statement
Obtaining Agreement
of Management about
Acknowledgement of
Responsibility
3)PROVIDE AUDITOR Identification of Applicable
●Relevent Information for Financial Reporting
Preparation of financial Framework
Statement
●Additional Information
●Unrestricted Access Reference to Expeted form and
Content of Reports to be
Issued by Auditor and
Statement if Differ from

Limitation on Scope Change in Terms

Recurring Audit

Revision of Terms
Resonable justification
Which will Result in Disclaiming an Opinion

Yes No
Yes No
Not Accept

New Terms
Agree Disagree

Withdraw

Agree Disagree
Record in Engagement Permitted by
Letter Management to
Contractual Liability

Accept
continue

Discontinue

Continue
Withdraw
Liability