Institute of Chartered Accountants of Sri Lanka enacts and adopts Sri Lankan accounting and auditing standards in the country. This act provided the establishment of “Accounting Standard Committee “and “Auditing Standard Committee” for the purpose of assisting the council of CA Sri Lanka. Sri Lanka Auditing Standards are based on International standards of auditing (IAS) to meet local conditions and needs of auditing. So being accordance with Sri Lankan Auditing standards ensures compliance with the international Standards of auditing and standards on auditing to the status of legal enactments. The latest publication of the Sri Lankan auditing standards and Sri Lankan standards on Quality control contain complete set of Sri Lankan auditing and Sri Lankan standards on Quality control.
From 1997 to 2010 there were 28 standards (From SLAuS 1 to SLAuS 28) that used to auditing the Financial Statements.
From SLAuS 1 to SLAuS 6 there were standards about the Responsibilities of the auditor. SLAuS 1 – Objectives and General Governing principles of auditing the Financial Statements. SLAuS 2 – Terms of audit Engagement. SLAuS 3 – Quality control for audit work. SLAuS 4 – Documentation. SLAuS 5 – Fraud and errors. SLAuS 6 – Considering Laws and Regulations of audit.
From SLAuS 7 to 9 were described the standards about planning. SLAuS 7 – Planning. SLAuS 8 – Knowledge of the business. SLAuS 9 – Audit materiality.
From SLAuS 10 to 12 were standards about internal control. SLAuS 10 – Risk assessment and Internal control. SLAuS 11 – Auditing in a computer system environment. SLAuS 12 – Audit consideration relating to entities using service organizations.
From SLAuS 13 to 22 there were the standards about Evidence. SLAuS 13 – Audit evidence.
SLAuS 14 - Audit Evidence Additional Considerations for Specific Items. SLAuS 15 - Initial Engagements - Opening Balances. SLAuS 16 - Analytical procedures. SLAuS 17 - Audit sampling. SLAuS 18 - Audit of Accounting Estimates. SLAuS 19 - Related parties. SLAuS 20 - Subsequent events. SLAuS 21 - Going concern. SLAuS 22 - Management representations. From SLAuS 23 to 25 there were the standards about using works of others. SLAuS 23 - Using the Work of another auditor. SLAuS 24 - Considering the Work of internal auditing. SLAuS 25 - Using the Work of an expert.
From SLAuS 26 to 28 there were standards about Audit conclusions and reporting. SLAuS 26 - The Auditor's Report on Financial statements. SLAuS 27 - Corresponding Figures SLAuS 28 - Other Information in Documents Containing Audited Financial Statements
These standards were used until 2010 and followings
are Effective for all audits commencing on or after 1 January 2010, except
for SLAuS 710 and SLAuS 800, which are effective for all audits commencing on
or after 1 April 2010 and these are affected until 2014.
General
Principles and Responsibilities
SLAuS 200 - Objective and General Principles Governing and Audit of Financial Statements
SLAuS 210 - Terms of Audit Engagements
SLAuS 220 - Quality Control for Audit Work
SLAuS 230 - Documentation
SLAuS 240 - The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements
SLAuS 250 - Consideration of Laws and Regulations in an Audit of Financial Statements SLAuS 260 - Communication of Audit matters with Charged with Governance
SLAuS 200 - Objective and General Principles Governing and Audit of Financial Statements
SLAuS 210 - Terms of Audit Engagements
SLAuS 220 - Quality Control for Audit Work
SLAuS 230 - Documentation
SLAuS 240 - The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements
SLAuS 250 - Consideration of Laws and Regulations in an Audit of Financial Statements SLAuS 260 - Communication of Audit matters with Charged with Governance
RISK
ASSESSMENT AND RESPONSE TO ASSESSED RISKS
SLAuS 300 - Planning an Audit of Financial Statements
SLAuS 315 - Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
SLAuS 320 - Audit Materiality
SLAuS 330 - The Auditor’s Procedures in Response to Assessed Risks
SLAuS 402 - Audit Considerations Relating to Entities Using Service Organizations
SLAuS 300 - Planning an Audit of Financial Statements
SLAuS 315 - Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
SLAuS 320 - Audit Materiality
SLAuS 330 - The Auditor’s Procedures in Response to Assessed Risks
SLAuS 402 - Audit Considerations Relating to Entities Using Service Organizations
AUDIT
EVIDENCE
SLAuS 500 - Audit Evidence
SLAuS 501 - Audit Evidence – Additional Considerations for Specific Items
SLAuS 505 - External Confirmations
SLAuS 510 - Initial Engagements – Opening Balances
SLAuS 520 - Analytical Procedures
SLAUS 530 - Audit Sampling and Other Means of Testing
SLAuS 540 - Audit of Accounting Estimates
SLAuS 545 - Auditing Fair Value Measurements and Disclosures
SLAuS 550 - Related Parties
SLAuS 560 - Subsequent Events
SLAuS 570 - Going Concern
SLAuS 580 - Management Representations
SLAuS 500 - Audit Evidence
SLAuS 501 - Audit Evidence – Additional Considerations for Specific Items
SLAuS 505 - External Confirmations
SLAuS 510 - Initial Engagements – Opening Balances
SLAuS 520 - Analytical Procedures
SLAUS 530 - Audit Sampling and Other Means of Testing
SLAuS 540 - Audit of Accounting Estimates
SLAuS 545 - Auditing Fair Value Measurements and Disclosures
SLAuS 550 - Related Parties
SLAuS 560 - Subsequent Events
SLAuS 570 - Going Concern
SLAuS 580 - Management Representations
SLAuS 600 - Using the Work of Another Auditor
SLAuS 610 - Considering the Work of Internal Audit
SLAuS 620 - Using the Work of an Expert
AUDIT CONCLUSIONS & REPORTING
SLAuS 700 - The Auditor’s Report on Financial Statements
SLAuS 710 - Comparatives
SLAuS 720 - Other information in Documents Containing Audited Financial Statements
SPECIALIZED AREAS SLAuS 800 - The Auditor’s Report on Special Purpose Audit Engagements
Considering the
auditing standards until 2010 and after 2010 to 2015 following standards have
added to deliver the auditor opinion accurately and clearly.
SLAuS 265 (COMMUNICATING DEFICIENCIES IN
INTERNAL CONTROL TO THOSE CHARGED WITH GOVERNANCE AND MANAGEMENT)
This Standard (SLAuS) deals with the
auditor’s responsibility to communicate appropriately to those charged with
governance and management deficiencies in internal control that the auditor has
identified in an audit of financial statements.
The objective of the auditor is to communicate
appropriately to those charged with governance and management deficiencies in
internal control that the auditor has identified during the audit and that, in
the auditor’s professional judgment, are of sufficient importance to merit
their respective attentions.
SLAuS 450 (EVALUATION
OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT)
This Sri Lanka Auditing Standard (SLAuS) deals with
the auditor’s responsibility to evaluate the effect of identified misstatements
on the audit and of uncorrected misstatements, if any, on the financial
statements. SLAuS 700 deals with the auditor’s responsibility, in forming an
opinion on the financial statements, to conclude whether reasonable assurance
has been obtained about whether the financial statements as a whole are free
from material misstatement.
The objective of the auditor is to evaluate: (a) The
effect of identified misstatements on the audit; and (b) The effect of
uncorrected misstatements, if any, on the financial statements.
SLAuS 705 (MODIFICATIONS
TO THE OPINION IN THE INDEPENDENT AUDITOR’S REPORT)
This Sri
Lanka Auditing Standards (SLAuS) deals with the auditor’s responsibility to
issue an appropriate report in circumstances when, in forming an opinion in
accordance with SLAuS 700.
The objective of the auditor is to express clearly
an appropriately modified opinion on the financial statements that is necessary
when: (a) The auditor concludes, based on the audit evidence obtained, that the
financial statements as a whole are not free from material misstatement; or (b)
The auditor is unable to obtain sufficient appropriate audit evidence to
conclude that the financial statements as a whole are free from material
misstatement.
SLAuS 706 (EMPHASIS
OF MATTER PARAGRAPHS AND OTHER MATTER PARAGRAPHS IN THE INDEPENDENT AUDITOR’S
REPORT)
This Sri Lanka Auditing Standard (SLAuS) deals with
additional communication in the auditor’s report when the auditor considers it
necessary to: (a) Draw users’ attention to a matter or matters
presented or disclosed in the financial statements that are of such importance
that they are fundamental to users’ understanding of the financial statements
or, (b)
Draw users’ attention to any matter or matters other than those presented or
disclosed in the financial statements that are relevant to users’ understanding
of the audit, the auditor’s responsibilities or the auditor’s report.
SLAuS 710 (COMPARATIVE
INFORMATION)
This Sri Lanka
Auditing Standard (SLAuS) deals with the auditor’s responsibilities relating to
comparative information in an audit of financial statements.
The objectives of the
auditor are: (a) To obtain sufficient appropriate audit evidence about whether
the comparative information included in the financial statements has been
presented, in all material respects, in accordance with the requirements for
comparative information in the applicable financial reporting framework; and (b) To
report in accordance with the auditor’s reporting responsibilities.
SLAuS 800 (SPECIAL
CONSIDERATIONS)
This SLAuS deals with special considerations in the
application of those SLAuSs to an audit of financial statements prepared in
accordance with a special purpose framework.
The objective of the
auditor, when applying SLAuSs in an audit of financial statements prepared in
accordance with a special purpose framework, is to address appropriately the
special considerations that are relevant to: (a) The acceptance of the
engagement; (b) The planning and performance of that engagement; and (c)
Forming an opinion and reporting on the financial statements.
SLAuS 805 (SPECIAL
CONSIDERATIONS—AUDITS OF SINGLE FINANCIAL STATEMENTS AND SPECIFIC ELEMENTS,
ACCOUNTS OR ITEMS OF A FINANCIAL STATEMENT)
This SLAuS deals with special considerations in the
application of those SLAuSs to an audit of a single financial statement or of a
specific element, account or item of a financial statement.
The objective of the
auditor, when applying SLAuSs in an audit of a single financial statement or of
a specific element, account or item of a financial statement, is to address
appropriately the special considerations that are relevant to: (a) The
acceptance of the engagement; (b) The planning and performance of that
engagement; and (c) Forming an opinion and reporting on the single financial
statement or on the specific element, account or item of a financial statement.
SLAuS 810 (ENGAGEMENTS
TO REPORT ON SUMMARY FINANCIAL STATEMENTS)
This Sri Lanka Auditing Standard (SLAuS) deals with
the auditor’s responsibilities relating to an engagement to report on summary
financial statements derived from financial statements audited in accordance
with SLAuSs by that same auditor.
The objectives of the
auditor are: (a) To determine whether it is appropriate to accept the engagement
to report on summary financial statements; and (b) If engaged to report on
summary financial statements: (i) To form an opinion on the summary financial
statements based on an evaluation of the conclusions drawn from the evidence
obtained; and (ii) To express clearly that opinion through a written report
that also describes the basis for that opinion.
References
(1)CA Sri Lanka,
(2) Sri
Lanka Accounting and auditing standard monitoring board,
(3) Auditing and accounting standard act,
No comments:
Post a Comment