icai sa checklist for audit

7/21/2019 ICAI SA Checklist for Audit

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SA 200 (Revised)

Sr.No. Particulars Yes/No/ N/A WP Ref Remarks

Effective Date A!ril 0"# 20"0

While conducting an audit of financial statements, whether auditor:

Et$ical Re%uireme&ts Relati&' to a& Audit of i&a&cial Stateme&ts

Professio&al Ske!ticism

Professio&al ud'me&t

Document the areas or items where professional judgment has to be exercised

Whether such judgment has been duly exercised and documented appropriately

Sufficie&t A!!ro!riate Audit Evide&ce a&d Audit Risk

*verall *+,ectives of t$e -&de!e&de&t Auditor a&d t$e o&duct of a& Audit i&Accorda&ce it$ Sta&dards o& Auditi&' (Re!laci&' earlier AAS 1asicPri&ci!les over&i&' a& Audit3)

i) Has obtained reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby

enabling the auditor to express an opinion on whether the f inancial statementsare prepared, in all material respects, in accordance with an applicable financialreporting framework; and

ii) Has reported on the financial statements, and communicate as reuired by the

!"s, in accordance with the auditor#s findings

iii) $f reasonable assurance is not obtained, whether ualification and% or disclaimer in the audit report for the related matters in audit report is considered

Whether the auditor has complied with rele&ant ethical reuirements, including thosepertaining to independence, relating to financial statement audit engagements

Whether the auditor has planned and performed an audit with professional skepticismrecognising that circumstances may exist that cause the financial statements to be

materially misstated



Sr.No. Particulars Yes/No/ N/A WP Ref Remarks

om!l4i&' it$ SAs Releva&t to t$e Audit

Whether the auditor has complied with all !"s rele&ant to the audit

*+,ectives Stated i& -&dividual SAs

om!l4i&' it$ Releva&t Re%uireme&ts

'he entire !" is not rele&ant; or

ailure to Ac$ieve a& *+,ective

Whether the auditor has obtained sufficient appropriate audit e&idence to reduce auditrisk to an acceptably low le&el and thereby enable the auditor to draw reasonableconclusions on which to base the auditor#s opinion

Whether the audit team members ha&e an understanding of the entire text of an !",including its application and other explanatory material, to understand its objecti&esand to apply its reuirements properly

Whether non(compliance with applicable and rele&ant !"s is appropriately capturedin framing the auditor#s report

Whether the auditor has used the objecti&es stated in rele&ant !"s in planning andperforming the audit, ha&ing regard to the interrelationships among the !"s todetermine whether any audit procedures in addition to those reuired by the !"s arenecessary in pursuance of the objecti&es stated in the !"s

Whether the auditor has complied with each reuirement of an !" unless, in thecircumstances of the audit:

'he reuirement is not rele&ant because it is conditional and the condition does notexist

Whether there are any exceptional circumstances, in which the auditor has judged itnecessary to depart from a rele&ant reuirement in an !"

$f *es, whether the auditor has performed alternati&e audit procedures to achie&e theaim of that reuirement



SA 2"0 (Revised)

Sr. No. Particulars Yes/No/NA WP Ref Remarks

AREE-N 56E 5ER7S * A8D-5 ENAE7EN5S Effective Date A!ril 0"# 20"0

1stablishing that the preconditions for an audit are present; and

$n establishing existence of preconditions for an audit, whether auditor has:

'o pro&ide the auditor with:

Whether the auditor has accepted or continued an audit engagement onlywhen the basis upon which it is to be performed has been agreed, through:

2onfirming that there is a common understanding between the auditor andmanagement of the terms of the audit engagement

Determines that the financial reporting framework to be applied in thepreparation of the financial statements is acceptable; and

3btain the agreement of management that it acknowledges and understandsits responsibility

+or the preparation of the financial statements in accordance with theapplicable financial reporting framework, including where rele&ant their fairpresentation;

"ccess to all information of which management is aware that is rele&ant to

the preparation of the financial statements such as records, documentationand other matters;

"dditional information that the auditor may reuest from management for thepurpose of the audit; and

4nrestricted access to persons within the entity from whom the auditordetermines it necessary to obtain audit e&idence




9imitatio& o& Sco!e Prior to Audit E&'a'eme&t Acce!ta&ce

$f 5o, then the assignment should not be accepted

'he objecti&e and scope of the audit of the financial statements;

'he responsibilities of the auditor;

'he responsibilities of management;

$f the preconditions for an audit are not present, whether the auditor hasdiscussed the matter with management 4nless reuired by law or regulationto do so, the auditor shall not accept the proposed audit engagement

Whether management or those charged with go&ernance has imposed alimitation on the scope of the auditor#s work in the terms of a proposed auditengagement such that the auditor belie&es the limitation will result in theauditor disclaiming an opinion on the financial statements

$f yes, then whether there is any reuirement of law or regulation to acceptthe assignment

Whether the terms of the audit engagement are agreed with management orthose charged with go&ernance, as appropriate

Whether the agreed terms of the audit engagement is recorded in an auditengagement letter or other suitable form of written agreement and includes:

$dentification of the applicable financial reporting framework for thepreparation of the financial statements; and

0eference to the expected form and content of any reports to be issued bythe auditor and a statement that there may be circumstances in which areport may differ from its expected form and content

Whether the law or regulation prescribes in sufficient detail the terms of theaudit engagement referred to abo&e

$f yes, the auditor need not record them in a written agreement, except for thefact that such law or regulation applies and that management acknowledgesand understands its responsibilities




i&a&cial Re!orti&' Sta&dards Su!!leme&ted +4 9a or Re'ulatio&

3n recurring audits, whether the auditor has assessed circumstances thatmay reuire the terms of the audit engagement to be re&ised and whetherthere is a need to remind the entity of the existing terms of the auditengagement

Whether there is any change in the terms of the audit engagement withoutreasonable justification for doing so, if yes, the auditor should not agree forthe same

Whether prior to completing the audit engagement, the auditor is reuested tochange the audit engagement to an engagement that con&eys a lower le&el ofassurance

$f yes, whether the auditor has determined that there is reasonable justification for doing so

Where the terms of the audit engagement are changed, whether the auditorand management shall agree on and record the new terms of theengagement in an engagement letter or other suitable form of written

Where the auditor is unable to agree to a change of the terms of the auditengagement and is not permitted by management to continue the originalaudit engagement, the auditor shall:

/a) Withdraw from the audit engagement where possible under applicablelaw or regulation; and

/b) Determine whether there is any obligation, either contractual or

otherwise, to report the circumstances to other parties, such as thosecharged with go&ernance, owners or regulators

$f financial reporting standards established by an authorised or recogni6edstandards setting organi6ation are supplemented by law or regulation,whether the auditor has determined that there are any conflicts between thefinancial reporting standards and the additional reuirements

$f such conflicts exist, whether the auditor has discussed with managementthe nature of the additional reuirements and shall agree whether:




$t is recognised in the terms of the audit engagement that:

7 'he additional reuirements can be met through additional disclosures in the financial statements; or

7 'he description of the applicable financial reporting framework in thefinancial statements can be amended accordingly

7 $f neither of the abo&e actions is possible, Whether the auditor hasdetermined that it will be necessary to modify the auditor#s opinion inaccordance with !" 8.9

i&a&cial Re!orti&' rameork Prescri+ed +4 9a or Re'ulatio&*t$er7atters Affecti&' Acce!ta&ce

Where the auditor has determined that the financial reporting frameworkprescribed by law or regulation would be unacceptable but for the fact that itis prescribed by law or regulation, Whether the auditor has accepted the auditengagement only if the following conditions are present:

anagement agrees to pro&ide additional disclosures in the financialstatements reuired to a&oid the financial statements being misleading; and

'he auditor#s report on the financial statements will incorporate an 1mphasisof atter paragraph, drawing users# attention to the additional disclosures, inaccordance with !" 8.< /0e&ised); and

4nless the auditor is reuired by law or regulation to express the auditor#sopinion on the financial statements by using the phrases =present fairly, in all

material respects>, or =gi&e a true and fair &iew> in accordance with theapplicable financial reporting framework, the auditor#s opinion on the financialstatements will not include such phrases

$f the conditions outlined abo&e are not present and the auditor is reuired bylaw or regulation to undertake the audit engagement, whether the auditor has:

1&aluated the effect of the misleading nature of the financial statements onthe auditor#s report; and




$f yes, whether the auditor has e&aluated that:

$ncluded appropriate reference to this matter in the terms of the auditengagement

Auditor:s Re!ort Prescri+ed +4 9a or Re'ulatio&

Whether the law or regulation applicable to the entity prescribes the layout orwording of the auditor#s report in a form or in terms that are significantlydifferent from the reuirements of !"s

users might misunderstand the assurance obtained from the audit of thefinancial statements and, if so,

Whether additional explanation in the auditor#s report can mitigate possiblemisunderstanding

$f the auditor concludes that additional explanation in the auditor#s reportcannot mitigate possible misunderstanding, the auditor shall not accept theaudit engagement, unless reuired by law or regulation to do so

Where an audit conducted in accordance with such law or regulation does notcomply with !"s 'hen, the auditor shall not include any reference within theauditor#s report to the audit ha&ing been conducted in accordance with !"s



SA 2;0 (Revised)

Sr. No. Particulars Yes/No/N/A WP Ref Remarks

Audit Docume&tatio& Effective Date A!ril 0"# 200<

Whether the documentation is done on a timely basis

a) 'he identifying characteristics of the specific items or matters tested;

Whether the auditor has prepared audit documentation that is sufficient toenable an experienced auditor, ha&ing no pre&ious connection with theaudit, to understand:

a) 'he nature, timing, and extent of the audit procedures performed tocomply with the !"s and applicable legal and regulatoryreuirements;

b) 'he results of the audit procedures performed, and the audit e&idence obtained; and

c) !ignificant matters arising during the audit, the conclusions reachedthereon, and significant professional judgments made in reaching

those conclusions

While documenting the nature, timing and extent of audit proceduresperformed, whether the auditor has recorded:

b) Who performed the audit work and the date such work wascompleted; and

c) Who re&iewed the audit work performed and the date and extent ofsuch re&iew




a) 'he circumstances encountered;

Whether discussions of significant matters with management, thosecharged with go&ernance, and others, including the nature of thesignificant matters discussed and when and with whom the discussions

took place is properly documented

Where the auditor identified information that is inconsistent with theauditor#s final conclusion regarding a significant matter, whether theauditor has documented how the auditor addressed the inconsistency

Where in exceptional circumstances, the auditor judges it necessary todepart from a rele&ant reuirement in a !", whether the auditor hasdocumented how the alternati&e audit procedures performed achie&e theaim of that reuirement, and the reasons for the departure

Where in exceptional circumstances, the auditor performs new oradditional audit procedures or draws new conclusions after the date of theauditor#s report, whether the auditor has documented:

b) 'he new or additional audit procedures performed, audit e&idenceobtained, and conclusions reached, and their effect on the auditor#sreport; and

c) When and by whom the resulting changes to audit documentationwere made and re&iewed

Whether the auditor has assembled the audit documentation in an auditfile and completes the administrati&e process of assembling the final auditfile on a timely basis after the date of the auditor#s report

Where the auditor finds it necessary to modify existing auditdocumentation or add new audit documentation after the assembly of thefinal audit file has been completed, whether the auditor has, regardless ofthe nature of the modifications or additions, documented:




a) 'he specific reasons for making them; and

b) When and by whom they were made and re&iewed



SA 2=0 (Revised)


Effective Date A!ril 0"# 200<

Discussio& Amo&' t$e E&'a'eme&t 5eam

5$e Auditor:s Res!o&si+ilities Relati&' to raud i& a& Audit ofi&a&cial Stateme&ts

Whether a discussion among the engagement team members anda determination by the engagement partner of matters which areto be communicated to those team members not in&ol&ed in thediscussion, has happened?

Whether the discussion has placed particular emphasis on how

and where the entity#s financial statements may be susceptible tomaterial misstatement due to fraud, including how fraud mightoccur?

'he discussion shall occur notwithstanding the engagement teammembers# beliefs that management and those charged withgo&ernance are honest and ha&e integrity

Whether the auditor has made inuiries of managementregarding:

a anagement#s assessment of the risk that the financialstatements may be materially misstated due to fraud,

including the nature, extent and freuency of suchassessments;

b anagement#s process for identifying and responding tothe risks of fraud in the entity, including any specific risksof fraud that management has identified or that ha&e beenbrought to its attention, or classes of transactions,account balances, or disclosures for which a risk of fraudis likely to exist;




c anagement#s communication, if any, to those chargedwith go&ernance regarding its processes for identifying and

responding to the risks of fraud in the entity; andd anagement#s communication, if any, to employees regarding its &iews on business practices and ethical

beha&ior

Whether the auditor has made inuiries of management andothers within the entity as appropriate, to determine whether theyha&e knowledge of any actual, suspected or alleged fraudaffecting the entity

Where entities that ha&e an internal audit function, whether theauditor has made inuiries of internal audit to determine whether it

has knowledge of any actual, suspected or alleged fraud affectingthe entity, and to obtain its &iews about the risks of fraud

4nless all of those charged with go&ernance are in&ol&ed inmanaging the entity, whether the auditor has obtained anunderstanding of how those charged with go&ernance exerciseo&ersight of management#s processes for identifying andresponding to the risks of fraud in the entity and the internalcontrol that management has established to mitigate these risks

Whether the auditor has made inuiries of those charged withgo&ernance to determine whether they ha&e knowledge of anyactual, suspected or alleged fraud affecting the entity 'heseinuiries are made in part to corroborate the responses to theinuiries of management

Whether the auditor has e&aluated unusual or unexpectedrelationships that ha&e been identified in performing analyticalprocedures, including those related to re&enue accounts, mayindicate risks of material misstatement due to fraud




at the financial statement le&el, and

at the assertion le&el for

classes of transactions,

account balances and disclosures

Whether the auditor has e&aluated that the information obtainedfrom the other risk assessment procedures and related acti&ities

performed indicate that one or more fraud risk factors are present

While fraud risk factors may not necessarily indicate the existenceof fraud, they ha&e often been present in circumstances wherefrauds ha&e occurred and therefore may indicate risks of materialmisstatement due to fraud

Whether the auditor has identified and assessed the risks ofmaterial misstatement due to fraud:

When identifying and assessing the risks of material misstatementdue to fraud as abo&e, whether the auditor has, based on apresumption that there are risks of fraud in re&enue recognition,e&aluated which types of re&enue, re&enue transactions orassertions gi&e rise to such risks

Whether the auditor has determined o&erall responses to addressthe assessed risks of material misstatement due to fraud at the

financial statement le&el

$n determining o&erall responses to address the assessed risks ofmaterial misstatement due to fraud at the financial statementle&el, whether the auditor has:

a "ssigned and super&ised personnel taking account of theknowledge, skill and ability of the indi&iduals to be gi&ensignificant engagement responsibilities and the auditor#sassessment of the risks of material misstatement due tofraud for the engagement;




b 1&aluate whether the selection and application ofaccounting policies by the entity, particularly those related

to subjecti&e measurements and complex transactions,may be indicati&e of fraudulent financial reporting resultingfrom management#s effort to manage earnings; and

c $ncorporate an element of unpredictability in the selection of the nature, timing and extent of audit procedures

Audit Procedures Res!o&sive to Assessed Risks of 7aterial7isstateme&t Due to raud at t$e Assertio& 9evel

Audit Procedures Res!o&sive to Risks Related to

7a&a'eme&t *verride of o&trolsWhether the auditor has designed and performed auditprocedures to:

a 'est the appropriateness of journal entries recorded in thegeneral ledger and other adjustments made in thepreparation of the financial statements $n designing andperforming audit procedures for such tests, the auditorshall:

i ake inuiries of indi&iduals in&ol&ed in the financialreporting process about inappropriate or unusual acti&ity

relating to the processing of journal entries and otheradjustments;

ii !elect journal entries and other adjustments made at theend of a reporting period; and

iii 2onsider the need to test journal entries and otheradjustments throughout the period




b 0e&iew accounting estimates for biases and e&aluatewhether the circumstances producing the bias, if any,represent a risk of material misstatement due to fraud $nperforming this re&iew, whether the auditor has:

i 1&aluated that the judgments and decisions made bymanagement in making the accounting estimates includedin the financial statements, e&en if they are indi&iduallyreasonable, indicate a possible bias on the part of theentity#s management that may represent a risk of materialmisstatement due to fraud $f so, the auditor shallre(e&aluate the accounting estimates taken as a whole;

and

ii @erformed a retrospecti&e re&iew of management judgments and assumptions related to significantaccounting estimates reflected in the financial statementsof the prior year

c +or significant transactions that are outside the normalcourse of business for the entity, or that otherwise appearto be unusual gi&en the auditor#s understanding of theentity and its en&ironment and other information obtainedduring the audit, whether the auditor has e&aluated

that the business rationale /or the lack thereof) of thetransactions suggests that they may ha&e been entered

into to engage in fraudulent financial reporting or to conceamisappropriation of assets

Whether the auditor has e&aluated that analytical procedures thatare performed when forming an o&erall conclusion as to whetherthe financial statements as a whole are consistent with theauditor#s understanding of the entity and its en&ironment indicate apre&iously unrecogni6ed risk of material misstatement due to fraud




Where there is an indication that misstatement is indicati&e offraud, whether the auditor has e&aluated the implications of themisstatement in relation to other aspects of the audit, particularlythe reliability of management representations, recogni6ing that aninstance of fraud is unlikely to be an isolated occurrence

Where the auditor identifies a misstatement, whether material ornot, and the auditor has reason to belie&e that it is or may be theresult of fraud and that management /in particular, seniormanagement) is in&ol&ed, whether the auditor has re(e&aluatedthe assessment of the risks of material misstatement due to fraudand its resulting impact on the nature, timing and extent of auditprocedures to respond to the assessed risks

Whether the auditor has also considered that circumstances orconditions indicate possible collusion in&ol&ing employees,management or third parties when reconsidering the reliability ofe&idence pre&iously obtained

Where the auditor has identified a fraud or has obtainedinformation that indicates that a fraud may exist, whether theauditor has communicated these matters on a timely basis to the

appropriate le&el of management in order to inform those withprimary responsibility for the pre&ention and detection of fraud ofmatters rele&ant to their responsibilities



SA 2>0 (Revised)

Sr. No. Particulars Yes/No/ NA WP Ref Remarks

o&sideratio& of 9as a&d Re'ulatio&s i& a& Audit of i&a&cial Stateme&ts Effective Date A!ril 0"# 200<

Whether the auditor has:

a 3btained sufficient appropriate audit e&idence regarding compliance with the pro&isions of those laws and

regulations generally recognised to ha&e a direct effecton the determination of material amounts anddisclosures in the financial statements by way of;

4se the auditor#s existing understanding of the entity#s industry, regulatory and

other external factors;

4pdate the understanding of those laws and regulations that directly determinethe reported amounts and disclosures in the financial statements;

$nuire of management as to other laws or regulations that may be expected toha&e a fundamental effect on the operations of the entity;

$nuire of management concerning the entity#s policies and procedures regardingcompliance with laws and regulations; and

$nuire of management regarding the policies or procedures adopted for

identifying, e&aluating and accounting for litigation claims

b @erformed specified audit procedures to help identify instances ofnoncompliance with other laws and regulations that may ha&e a material effecton the financial statements; and

c 0esponded appropriately to non(compliance or suspected non(compliancewith laws and regulations identified during the audit




b How the entity is complying with that framework

Whether as part of obtaining an understanding of the entity and its en&ironmentin accordance with !" -A9, the auditor has obtained a general understanding of :

a 'he legal and regulatory framework applicable to theentity and the industry or sector in which the entityoperates; and

Whether the auditor has performed the following audit procedures to helpidentify instances of non(compliance with other laws and regulations that mayha&e a material effect on the financial statements:

a $nuiring of management and, where appropriate, those charged with

go&ernance, as to whether the entity is in compliance with such laws andregulations; and

b $nspecting correspondence, if any, with the rele&ant licensing or regulatoryauthorities

Whether during the audit, the auditor has come across any instances of non(compliance or suspected non(compliance with laws and regulations

Where the auditor becomes aware of information concerning an instance ofnoncompliance or suspected non(compliance with laws and regulations, whetherthe auditor has obtained:

a "n understanding of the nature of the act and thecircumstances in which it has occurred; and

b +urther information to e&aluate the possible effect onthe financial statements

Whether there is a suspicious circumstance that indicates that there may benon(compliance

$f yes, whether the auditor has discussed the matter with management and,where appropriate, those charged with Bo&ernance




$f management or, as appropriate, those charged with go&ernance do not pro&idesufficient information that supports that the entity is in compliance with laws andregulations and, in the auditor#s judgment, the effect of the suspected non(

compliance may be material to the financial statements, whether the auditor hasconsidered the need to obtain legal ad&ice

Where sufficient information about suspected non(compliance cannot beobtained, whether the auditor has e&aluated the effect of the lack of sufficientappropriate audit e&idence on the auditor#s opinion

Whether the auditor has communicated with those charged with go&ernancematters in&ol&ing noncompliance with laws and regulations that come to theauditor#s attention during the course of the audit, other than when the mattersare clearly inconseuential

Where the auditor concludes that the non(compliance has a material effect onthe financial statements, and has not been adeuately reflected in the financialstatements, whether the auditor has, in accordance with !" 8.9, expressed aualified or ad&erse opinion on the financial statements

Where the auditor has identified or suspects non(compliance with laws andregulations, whether the auditor has determined that the auditor has aresponsibility to report the identified or suspected non(compliance to partiesoutside the entity



SA 2?0 (Revised)

Sr. No. Particulars Yes/No/ N/A WP Ref Remarks

ommu&icatio& it$ 5$ose $ar'ed it$ over&a&ce Effective Date A!ril 0"# 200<

Whether the auditor has identified 5$ose c$ar'ed it$ 'over&a&ce based onfollowing definition(

a) 'he person/s) or organisation/s) /eg, a corporate trustee) with responsibility for o&erseeing the strategic direction of the entity and

obligations related to the accountability of the entity

b) anagement personnel, for example, executi&e members of a go&ernance

board of a pri&ate or public sector undertakings orc) an owner(manager

Whether the auditor has determined the appropriate person/s) within the entity#sgo&ernance structure with whom to communicate

Where the auditor communicates with a subgroup of those charged withgo&ernance, for example, an audit committee, or an indi&idual, whether theauditor has determined that the auditor also needs to communicate with thego&erning body

Whether the auditor has communicated with those charged with go&ernance the

responsibilities of the auditor in relation to the financial statement audit, includingthat:

a 'he auditor is responsible for forming and expressing an opinion on thefinancial statements that ha&e been prepared by management with theo&ersight of those charged with go&ernance; and

b 'he audit of the financial statements does not relie&e management or thosecharged with go&ernance of their responsibilities




'he auditor shall communicate with those charged with go&ernance:

b !ignificant difficulties, if any, encountered during the audit;

ii Written representations the auditor is reuesting; and

Whether the auditor has communicated with those charged with go&ernance ano&er&iew of the planned scope and timing of the audit

a 'he auditor#s &iews about significant ualitati&e aspects of the entity#saccounting practices, including accounting policies, accounting estimatesand financial statement disclosures When applicable, the auditor shallexplain to those charged with go&ernance why the auditor considers asignificant accounting practice, that is acceptable under the applicablefinancial reporting framework, not to be most appropriate to theparticular circumstances of the entity;

c 4nless all of those charged with go&ernance are in&ol&ed in managing theentity:

i !ignificant matters, if any, arising from the audit that were discussed, orsubject to correspondence with management; and

d 3ther matters, if any, arising from the audit that, in the auditor#s professional judgment, are significant to the o&ersight of the financial

reporting process

$n the case of listed entities, whether the auditor has communicated with thosecharged with go&ernance

a " statement that the engagement team and others in the firm as appropriate, the firm and, when applicable, network firms ha&e complied with

rele&ant ethical reuirements regarding independence; and




b "ll relationships and other matters between the firm, network firms, and the entity that, in the auditor#s professional judgment, may reasonably be thought to bear on independence 'his shall include total fees charged during

the period co&ered by the financial statements for audit and non(auditser&ices pro&ided by the firm and network firms to the entity andcomponents controlled by the entity

'hese fees shall be allocated to categories that are appropriate to assist thosecharged with go&ernance in assessing the effect of ser&ices on the independenceof auditor and safeguards to eliminate threats to independence



SA 2?>


Effective Date A!ril 0"# 20"0ommu&icati&' Deficie&cies i& -&ter&al o&trol to 5$ose$ar'ed it$ over&a&ce a&d 7a&a'eme&t

Whether the auditor has identified one or more deficiencies ininternal control

$f yes, whether indi&idually or in combination, they constitutesignificant deficiencies

$f yes, whether the auditor has communicated in writingsignificant deficiencies in internal control identified during the

audit to those charged with go&ernance on a timely basisWhether the auditor has also communicated to management atan appropriate le&el of responsibility on a timely basis:

a $n writing, significant deficiencies in internal control that theauditor has communicated or intends to communicate tothose charged with go&ernance, unless it would beinappropriate to communicate directly to management inthe circumstances; and

b 3ther deficiencies in internal control identified during theaudit that ha&e not been communicated to management by

other parties and that, in the auditor#s professional judgment, are of sufficient importance to meritmanagement#s attention

Whether the auditor has included in the written communicationof significant deficiencies in internal control:

a " description of the deficiencies and an explanation of theirpotential effects; and

b !ufficient information to enable those charged withgo&ernance and management to understand the context of

the communication $n particular, the auditor shall explainthat:




i 'he purpose of the audit was for the auditor to express an opinion on the financial statements;

ii 'he audit included consideration of internal controlrele&ant to the preparation of the financial statements inorder to design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressingan opinion on the effecti&eness of internal control; and

iii 'he matters being reported are limited to thosedeficiencies that the auditor has identified during theaudit and that the auditor has concluded are of sufficientimportance to merit being reported to those charged withgo&ernance but not significant enough to affect the audit

report



SA 2<<


Res!o&si+ilit4 of oi&t Auditors

Ha&e the Coint auditors by mutual discussion di&ided the work amongstthemsel&es

Ha&e the Coint auditors adeuately documented the di&ision of work as wellas areas of work to be co&ered by us and joint auditors and communicated tothe entity?

Ha&e the Coint auditors submitted a report or a note prior to finali6ation of theaudit to all the other joint auditors of matters coming to our attention whichare rele&ant to the other joint auditors?

Ha&e the Coint auditors expressed their own opinion in a separate reportwhere they are in disagreement with regard to any matters to be co&ered bythe report?



SA ;00 (Revised)

Sr. No. Particulars Yes / No / N/A WP Ref Remarks

Pla&&i&' a& Audit of i&a&cial Stateme&ts Effective Date A!ril 0"# 200@

$n establishing the o&erall audit strategy, whether the auditor has:

Whether the engagement partner and other key members of theengagement team ha&e been in&ol&ed in planning the audit

Whether the auditor has undertaken the following acti&ities at the beginningof the current audit engagement:

a @erforming procedures reuired by 0e&ised !" ., =uality 2ontrol for an "udit of +inancial !tatements> regarding the continuance of the client relationship and the specific audit engagement;

b 1&aluating compliance with ethical reuirements, includingindependence, as reuired by 0e&ised !" .; and

c 1stablishing an understanding of the terms of the engagement, as reuired by 0e&ised !" A., ="greeing the 'erms of "udit

1ngagements>

Whether the auditor has established an o&erall audit strategy that sets thescope, timing and direction of the audit and that guides the de&elopment ofaudit plan

a $dentified the characteristics of the engagement that define its scope;

b "scertained the reporting objecti&es of the engagement to plan the timing of the audit and the nature of the communications

reuired;




Additio&al o&sideratio&s i& -&itial Audit E&'a'eme&ts

c 2onsidered the factors that, in the auditor#s professiona l judgment, are significant in directing the engagement team#s

efforts;

d 2onsidered the results of preliminary engagement acti&ities and, where applicable, whether knowledge gained on other

engagements performed by the engagement partner for the entityis rele&ant; and

e "scertained the nature, timing and extent of resources necessary to perform the engagement

Whether the auditor has de&eloped an audit plan that include a descriptionof:

a 5ature, timing and extent of planned risk assessmentprocedures, as determined under !" -A9

b 5ature, timing and extent of planned further audit procedures at the assertion le&el, as determined under !" --.

c 3ther planned audit procedures that are reuired to be carried out so that the engagement complies with !"s

Whether the auditor has planned the nature, timing and extent of directionand super&ision of engagement team members and the re&iew of their work

Whether the auditor has undertaken the following acti&ities prior to startingan initial audit:

a @erforming procedures reuired by !" . regarding theacceptance of the client relationship and the specific auditengagement; and




b 2ommunicating with the predecessor auditor, where there hasbeen a change of auditors, in compliance with rele&ant ethicalreuirements



SA >?0 (Revised)


Su+se%ue&t Eve&ts Effective from A!ril 0"# 200<

Eve&ts *ccurri&' 1etee& t$e Date of t$e i&a&cial Stateme&tsa&d t$e Date of t$e Auditor:s Re!ort

Whether audit procedures designed to obtain sufficient appropriateaudit e&idence performed that all e&ents occurring between the date ofthe financial statements and the date of the auditor#s report that reuireadjustment of, or disclosure in, the financial statements ha&e beenidentified

Whether the procedures reuired by para < performed so that they

co&er the period from the date of the financial statements to the date ofthe auditor#s report, or as near as practicable thereto

Whether the risk assessment in determining the nature and extent ofsuch audit procedures take into account the following: /@ara "8("E)

7 3btaining an understanding of any procedures management hasestablished to ensure that subseuent e&ents are identified

7 $nuiring of management and, where appropriate, those chargedwith go&ernance as to whether any subseuent e&ents ha&eoccurred which might affect the financial statements /@ara "F)

7 0eading minutes, if any, of the meetings, of entity#s owners,management and those charged with go&ernance, that ha&e beenheld after the date of financial statements and inuiring aboutmatters discussed at any such meetings for which minutes are notyet a&ailable /@ara "A.)

7 0eading the entity#s latest subseuent interim financialstatements, if any




Writte& Re!rese&tatio&s

Whether, as a result of the procedures performed as reuired abo&eidentifies e&ents that reuire adjustment of, or disclosure in, financialstatements, determine whether each such e&ent is appropriately

reflected in those financial statements

Whether reuest to management and those charged with go&ernancemade, to pro&ide a written representation in accordance with !" 9E.that all e&ents occurring subseuent to the date of the financialstatements and for which applicable financial reporting frameworkreuires adjustment or disclosure ha&e been adjusted or disclosed

acts W$ic$ 1ecome &o& to t$e Auditor After t$e Date of t$eAuditor:s Re!ort +ut 1efore t$e Date t$e i&a&cial Stateme&ts are

-ssued

When, after the date of the auditor#s report but before the date thefinancial statements are issued, a fact becomes known to the auditorthat, had it been known to the auditor at the date of the auditor#s report,may ha&e caused the auditor to amend the auditor#s report, whether thefollowing has been done: /@ara "AA)

7 Discuss the matter with management and, where appropriate, those charged with go&ernance

7 Determine whether the financial statements need amendment and,

if so,7 $nuire how management intends to address the matter in the

financial statements

$f management amends the financial statements, whether the followinghas been done:

7 2arry out the audit procedures necessary in the circumstances onthe amendment

7 4nless the circumstances in para A apply:




G 1xtend the audit procedures referred in para < and 8 to the date of the new auditor#s report; and

G @ro&ide a new auditor#s report on the amended financial

statements 'he new auditor#s report shall not be dated earlierthan the date of appro&al of the amended financial statements

When law, regulation or financial reporting framework does not prohibitmanagement from restricting the amendment of financial statements tothe effects of subseuent e&ents or e&ents causing that amendmentsand those responsible for appro&ing the financial statements are notprohibited from restricting their appro&al to that amendment, the auditoris permitted to restrict the audit procedures on subseuent e&entsreuired in para AA/b)/i) to that amendment whether either of thefollowing has been done:

"mend the auditor#s report to include an additional date restricted tothat amendment thereby indicating that the auditor#s procedures onsubseuent e&ents are restricted solely to the amendment of thefinancial statements described in the rele&ant note; /@ara "A)

@ro&ide a new or amended auditor#s report that includes a statement inan 1mphasis of atter paragraph or 3ther matter/s) paragraph thatcon&eys that auditor#s procedures on subseuent e&ents are restrictedsolely to the amendment of the financial statements as described in therele&ant note to the f inancial statements

$n some entities, management may not be reuired by the applicablelaw, regulation or the financial reporting framework to issue amendedfinancial statements and, accordingly, the auditor need not pro&ide anamended or new auditor#s report Howe&er, when management doesnot amend the financial statements in circumstances where the auditorbelie&es they need to be amended, then whether the following hasbeen done: /@ara "A-("A)




$f the auditor#s report has not yet been pro&ided to the entity, Whethermodify the opinion as reuired by !" 8.9 and then pro&ide the auditor#sreport; or

$f the auditor#s report has already been pro&ided to the entity, whethernotify management and, those charged with go&ernance, not to issuethe financial statements to third parties before the necessaryamendments ha&e been made $f the financial statements arene&ertheless subseuently issued without the necessary amendments,whether an appropriate action has been taken, to seek to pre&entreliance on the auditor#s report /@ara "A9("A<)

acts W$ic$ 1ecome &o& to t$e Auditor After t$e i&a&cialStateme&ts $ave +ee& -ssued

"fter the financial statements ha&e been issued, the auditor has no

obligation to perform any audit procedures regarding such financialstatements Howe&er, when, after the financial statements ha&e beenissued, a fact becomes known to the auditor that, had it been known tothe auditor at the date of the auditor#s report, may ha&e caused theauditor to amend the auditor#s report, whether the following has beendone:

7 Discuss the matter with management and, where appropriate,those charged with go&ernance

7 Determine whether the financial statements need amendment and, if so,

7 $nuire how management intends to address the matter in thefinancial statements

$f the management amends the financial statements, whether thefollowing has been done /@ara "A8)

7 2arry out the audit procedures necessary in the circumstances on the amendment




7 0e&iew the steps taken by management to ensure that anyone inreceipt of the pre&iously issued financial statements together withthe auditor#s report thereon is informed of the situation

7 4nless the circumstances in para A apply:

1xtend the audit procedures referred to in para < and 8 to the dateof the new auditor#s report, and the date the new auditor#s reportno earlier than the date of appro&al of the amended financialstatements; and

@ro&ide a new auditor#s report on the amended financialstatements

7 When the circumstances in paragraph A apply, amend theauditor#s report, or pro&ide a new auditor#s report as reuired by

paragraph A

Whether to include in the new or amended auditor#s report an1mphasis of atter paragraph or 3ther atter/s) paragraph referring toa note to the financial statements that more extensi&ely discusses thereason for the amendment of the pre&iously issued financial statementsand to the earlier report pro&ided by the auditor

$f management does not take the necessary steps to ensure thatanyone in receipt of the pre&iously issued financial statements isinformed of the situation and does not amend the financial statementsin circumstances where the auditor belie&es they need to be amended,whether management and those charged with go&ernance are notified,that the auditor will seek to pre&ent future reliance on the auditor#sreport $f, despite such notification, management or those charged withgo&ernance do not take these necessary steps, whether appropriateaction to seek to pre&ent reliance on the auditor#s report has beenmade /@ara "AE)



SA >>0 (Revised)


Related Parties Effective from A!ril 0"# 20"0

Risk Assessme&t Procedures a&d Related Activities

$nuire of management regarding:

Whether the audit procedures and related acti&ities set outin para A(A8 performed to obtain information rele&ant toidentifying the risks of material misstatement associatedwith related party relationships and transactions /@ara "E)

8&dersta&di&' t$e E&tit4:s Related Part4 Relatio&s$i!sa&d 5ra&sactio&s

Whether the engagement team discussion that !" -A9 and!" . includes specific consideration of the susceptibilityof financial statements to material misstatement due tofraud or error that could result from the entity#s relatedparty relationships and transactions /@ara "F("A.)

7 identity of the entity#s related parties, includingchanges from the prior period; /@ara "AA("A)

7 nature of the relationships between the entity andthese related parties; and

7 Whether the entity entered into any transactions with these related parties during the period and, the type and purpose of the transactions




7 nature of these transactions; and /@ara "<)

$nuire of management and others within the entity, andperform other risk assessment procedures consideredappropriate, to obtain an understanding of the controls, ifany, that management has established to: /0ef:@ara "A9(

".)

7 $dentify, account for, and disclose related partyrelationships and transactions in accordance withthe applicable financial reporting framework;

7 "uthorise and appro&e significant transactions andarrangements outside the normal course ofbusiness

7ai&tai&i&' Alert&ess for Related Part4 -&formatio&W$e& Reviei&' Records or Docume&ts

Whether the following inspected for indications of theexistence of related party relationships or transactions thatmanagement has not pre&iously identified or disclosed tothe auditor:

7 Iank, legal and third party confirmations obtained as part of the auditor#s procedures;

7 inutes of meetings of shareholders and of thosecharged with go&ernance; and

7 !uch other records or documents considersnecessary in the circumstances of the entity

$f the auditor identifies significant transactions outside theentity#s normal course of business when performing theaudit procedures reuired by para A9 or through otheraudit procedures, inuire of management about: /@ara

"("9)




Whether rele&ant information obtained about the entity#s

7 Whether related parties could be in&ol&ed/@ara "8)

S$ari&' Related Part4 -&formatio& it$ t$e

E&'a'eme&t 5eam

related parties is shared with the other members of theengagement team /@ara"E)

-de&tificatio& a&d Assessme&t of Risks of 7aterial7isstateme&t Associated it$ Related Part4Relatio&s$i!s a&d 5ra&sactio&s

$dentify and assess the risks of material misstatementassociated with related party relationships and transactionsand determine whether those risks are significant

$f fraud risk factors /including circumstances relating to theexistence of a related party with dominant influence)identified when performing the risk assessment proceduresand related acti&ities in connection with related parties,whether such information is considered when identifyingand assessing the risks of material misstatement due tofraud in accordance with !" . /@ara "< and "F("-.)

Res!o&ses to t$e Risks of 7aterial 7isstateme&tAssociated it$ Related Part4 Relatio&s$i!s a&d5ra&sactio&s




$f related parties or significant related party

Whether the auditor designs and performs further auditprocedures to obtain sufficient appropriate audit e&idenceabout the assessed risks of material misstatementassociated with related party relationships and

transactionspara /@ara"-A("-)

-de&tificatio& of Previousl4 8&ide&tified or8&disclosed Related Parties or Si'&ifica&t RelatedPart4 5ra&sactio&s

$f the auditor identifies arrangements or information thatsuggests the existence of related party relationships ortransactions that management has not pre&iously identifiedor disclosed to the auditor, determine whether theunderlying circumstances confirm the existence of thoserelationships or transactions

'ransactions are identified that management has notpre&iously identified or disclosed, whether the auditor hasdone the following:

7 @romptly communicated the rele&ant information to the other members of the engagement team; /@ara "-9)

7 Where the applicable financial reporting framework

establishes related party reuirements:

G 0euest management to identify alltransactions with the newly identified relatedparties for auditor#s further e&aluation; and

G $nuire as to why the entity#s controls o&errelated party relationships and transactionsfailed to enable identification or disclosure ofthe related party relationships or transactions;




7 @erform appropriate substanti&e audit procedures relating to such newly identified related parties or

significant related party transactions; /@ara "-<)

7 0econsider the risk that other related parties orsignificant related party transactions may exist

that management has not pre&iously identified ordisclosed to the auditor, and perform additionalaudit procedures as necessary; and

7 $f the non(disclosure by management appears intentional /and therefore indicati&e of a risk of

material misstatement due to fraud), e&aluate the implications for the audit /@ara "-8)

-de&tified Si'&ifica&t Related Part4 5ra&sactio&s

outside t$e E&tit4:s Normal ourse of 1usi&ess

+or identified significant related party transactions outsidethe entity#s normal course of business, whether done thefollowing:

7 $nspect the underlying contracts or agreements, ifany, and e&aluate whether:

G 'he business rationale /or lack thereof) oftransactions suggests that they may ha&e beenentered into to engage in fraudulent financial

reporting or to conceal misappropriation of assets;/@ara "-E("-F)

G 'he terms of the transactions are consistent withmanagement#s explanations; and

G 'he transactions ha&e been appropriatelyaccounted for and disclosed in accordance withthe applicable financial reporting framework; and




7 3btain audit e&idence that the transactions ha&ebeen appropriately authorised and appro&ed /@ara

".("A)

Assertio&s 5$at Related Part4 5ra&sactio&s Wereo&ducted o& 5erms E%uivale&t to 5$ose Prevaili&' i&a& Arm:s 9e&'t$ 5ra&sactio&

When management has made an assertion in the financialstatements to the effect that a related party transactionwas conducted on terms eui&alent to those pre&ailing inan arm#s length transaction, whether sufficient appropriateaudit e&idence about the assertion has been obtained/@ara "("9 )

Evaluatio& of t$e Accou&ti&' for a&d Disclosure of

-de&tified Related Part4 Relatio&s$i!s a&d5ra&sactio&s

$n forming an opinion on the financial statements inaccordance with !" 8.. /0e&ised) e&aluate the following:/@ara "<)

7 Whether the identified related party relationshipsand transactions ha&e been appropriatelyaccounted for and disclosed in accordance with

the applicable financial reporting framework;

7 Whether the effects of the related partrelationships and transactions:

G @re&ent the financial statements from achie&ing true and fair presentation /for fair presentation

frameworks); or

G 2ause the financial statements to be misleading/for compliance frameworks)





ommu&icatio& it$ 5$ose $ar'ed it$ over&a&ce

Docume&tatio&

Where the applicable financial reporting frameworkestablishes related party reuirements, whether obtainedthe written representations from management and, whereappropriate, those charged with go&ernance that: /@ara

"E("F)

'hey ha&e disclosed to the auditor the identity of theentity#s related parties and all the related partyrelationships and transactions of which they are aware;and

'hey ha&e appropriately accounted for and disclosed suchrelationships and transactions in accordance with thereuirements of the framework

4nless all of those charged with go&ernance are in&ol&edin managing the entity, whether communication with thosecharged with go&ernance on significant matters arisingduring the audit in connection with the entity#s relatedparties /@ara "9.)

$n meeting the documentation reuirements of !" -. andother !"s, whether the audit documentation includes the

names of identified related parties and the nature of therelated party relationships



SA >=0 (Revised)


Effective from A!ril 0"# 200<


Auditi&' Accou&ti&' Estimates# -&cludi&' air Balue Accou&ti&'Estimates# a&d Related Disclosures

Whether an understanding obtained in order to pro&ide a basis foridentification and assessment of the risks of material misstatement foraccounting estimates /@ara "A) :

J 'he reuirements of the applicable financial reportingframework rele&ant to accounting estimates, includingrelated disclosures /@ara"A-("A9)

J How does management identify those transactions,e&ents and conditions that may gi&e rise to the need foraccounting estimates to be recognised or disclosed inthe financial statements $n obtaining this understanding,whether inuiries of management about changes incircumstances that may gi&e rise to new, or the need tore&ise existing, accounting estimates ha&e been made/@ara "A<("A)

J How management makes accounting estimates, and an understanding of the data on which they are based,

including: /@ara "("-)K 'he method, including where applicable the model, used in

making the accounting estimate; /@ara "("<)

K 0ele&ant controls; /@ara "8("E)

K Whether management has used an expert; /@ara "F(-.)

K 'he assumptions underlying the accounting estimates; /@ara "-A("-<)




-de&tif4i&' a&d Assessi&' t$e Risks of 7aterial 7isstateme&t

Res!o&ses to Assessed Risks of 7aterial 7isstateme&t

K Whether there has been or ought to ha&e been a change from the prior period in the methods for making accountingestimates, and why; and /@ara "-8)

K Whether and how management has assessed the effect ofestimation uncertainty /@ara "-E)

Whether the outcome of accounting estimates included in prior periodfinancial statements been re&iewed, or, where applicable, their subseuentre(estimation for the purpose of current period

Whether the nature and extent of re&iew takes account of the nature ofaccounting estimates

Whether information obtained from re&iew would be rele&ant to identifyingand assessing risks of material misstatement of accounting estimates

made in current period financial statements Lthe re&iew is not intended tocall into uestion the judgments made in the prior periods that were basedon information a&ailable at that time /@ara "-F(")M

$n identifying and assessing the risks of material misstatement, as reuiredby !" -A9, whether the degree of estimation uncertainty associated withan accounting estimate e&aluated /@ara "9("<)

Determine whether any of those accounting estimates that ha&e beenidentified as ha&ing high estimation uncertainty gi&e rise to significant risks/@ara "8("9A)

Iased on assessed risks of material misstatement, determine thefollowing: /@ara "9)

K Whether management has appropriately applied thereuirements of applicable financial reporting frameworkrele&ant to the accounting estimate; and /@ara "9-("9<)




K Whether the methods for making accounting estimates areappropriate and ha&e been applied consistently, and whetherchanges, if any, in accounting estimates or in the method for

making them from the prior period are appropriate in the circumstances /@ara "98("9E)

$n responding to the assessed risks of material misstatement, as reuiredby !" --., whether undertake one or more of the following, taking accountof the nature of accounting estimate: /@ara "9F( "<A)

K Determine whether e&ents occurring up to the date of the auditor#s reportpro&ide audit e&idence regarding the accounting estimate /@ara "<("<8)

K 'est how management made the accounting estimate and the data on which it is based $n doing so, e&aluate whether: /@ara "<E("8.)

method of measurement used is appropriate in the I--; and /@ara "8A( "8<)

assumptions used by management are reasonable in light of themeasurement objecti&es of applicable financial reporting framework /@ara

"88("E-)

K'est the operating effecti&eness of controls o&er howmanagement made the accounting estimate, together withappropriate substanti&e procedures /@ara "E( "E<)

K De&elop a point estimate or a range to e&aluatemanagement#s point estimate /@ara "E8("FA)

the auditor uses assumptions or methods that differ from management#s,whether an understanding of management#s assumptions or methodstakes into account rele&ant &ariables and e&aluate any significantdifferences from management#s point estimate /@ara "F)

it concludes that it is appropriate to use a range, whether all outcomeswithin the range are considere reasonable




urt$er Su+sta&tive Procedures to Res!o&d to Si'&ifica&t Risks

Estimatio& 8&certai&t4

Reco'&itio& a&d 7easureme&t riteria

$n determining the matters identified and in responding to the assessedrisks of material misstatement, whether specialised skills or knowledge inrelation to one or more aspects of accounting estimates are reuired inorder to obtain sufficient appropriate audit e&idence /@ara "F<("A.A)

+or accounting estimates that gi&e rise to significant risks, in addition toother substanti&e procedures performed to meet the reuirements of !"--., whether the following has been e&aluated: /@ara "A.)

K How management has considered alternati&e assumptions or outcomes, and why it has rejected them, or how management

has otherwise addressed estimation uncertainty in making the accounting estimate /@ara "A.-("A.<)

K Whether the significant assumptions used by managementare reasonable /@ara "A.8("A.F)

K Where reasonableness of the significant assumptions used by management, the management#s intent to carry outspecific course of action and its ability to do so /@ara "AA.)

$f, in the auditor#s judgment, management has not adeuately addressedthe effects of estimation uncertainty on the accounting estimates that gi&e

rise to significant risks, if considered necessary, whether a range withwhich to e&aluate the reasonableness of the accounting estimate beende&eloped /@ara "AAA("AA)

+or accounting estimates that gi&e rise to significant risks, obtain sufficientappropriate audit e&idence whether the following are in accordance withthe reuirements of applicable financial reporting framework:




Disclosures Related to Accou&ti&' Estimates

-&dicators of Possi+le 7a&a'eme&t 1ias


Docume&tatio&

K management#s decision to recognise, or to not recognise,accounting estimates in the financial statements; and /@ara

"AA-("AA)

K the selected measurement basis for accounting estimates/@ara "AA9)

Evaluati&' Reaso&a+le&ess of Accou&ti&' Estimates# a&dDetermi&i&' 7isstateme&ts

Iased on the audit e&idence, whether the accounting estimates in financialstatements are either reasonable, or are misstated been e&aluated /@ara

"AA<("AAF)

Whether sufficient appropriate audit e&idence obtained about disclosures

in financial statements related to accounting estimates are in accordancewith the reuirements of applicable financial reporting framework /@ara

"A.("AA)

+or accounting estimates that gi&e rise to significant risks, whether theadeuacy of disclosure of their estimation uncertainty in the financialstatements e&aluated /@ara "A("A-)

Whether the judgments and decisions made by management in themaking of accounting estimates re&iewed to identify if there are anyindicators of possible management bias /@ara "A("A9)

3btain written representations from management and where appropriate,those charged with go&ernance whether they belie&e significantassumptions used in making accounting estimates are reasonable /@ara

"A<("A8)




Whether documentation include the following

K 'he basis for auditor#s conclusions about the reasonableness of accounting estimates and their disclosure that gi&e rise to

significant risks; and

K $ndicators of possible management bias, if any /@ara "AE)



SA >;0 (Revised)


Audit Sam!li&' Effective from A!ril 0"# 200<

Sam!le Desi'&# SiCe a&d Selectio& of -tems for 5esti&'

Performi&' Audit Procedures

Nature a&d ause of Deviatio&s a&d 7isstateme&ts

When designing an audit sample, whether the purpose of the audit procedureand characteristics of the population from which the sample will be drawn hasbeen considered /@ara "("F)

K Whether determined sample si6e is sufficient to reducesampling risk to an acceptably low le&el /@ara "A.("AA)

K Whether selected items for the sample demonstrate that eachsampling unit in the population has a chance of selection

/@ara "A("A-)

Whether performed audit procedures, appropriate to the purpose, on eachitem selected

$n case when the audit procedure is not applicable to the selected item,whether performed the procedure on a replacement item

$f unable to apply the designed audit procedures, or suitable alternati&eprocedures, to a selected item, Whether that item is treated as a de&iationfrom the prescribed control, in the case of tests of controls, or a misstatement,

in the case of tests of details /@ara "A9("A<)

Whether the nature and cause of any de&iations or misstatements identified?1&aluate their possible effect on the purpose of audit procedure and on otherareas of the audit /@ara "A8)




$f *es:

Pro,ecti&' 7isstateme&ts

Evaluati&' Results of Audit Sam!li&'

Whether the following e&aluated (

Whether the misstatement or de&iation disco&ered in a sample is an anomaly?3btain a high degree of certainty that such misstatement or de&iation is notrepresentati&e of the population

obtain high degree of certainty by performing additional audit procedures toobtain sufficient appropriate audit e&idence that the misstatement or de&iationdoes not affect the remainder of the population

+or tests of details, whether misstatements found in the sample to thepopulation projected /@ara "AE(".)

K results of the sample /@ara "A(")

K use of audit sampling pro&ides a reasonable basis for conclusionsabout the population that has been tested /@ara"-)



SA >20 (Revised)


A&al4tical Procedures3 Effective Date A!ril 0"# 20"0

Su+sta&tive A&al4tical Procedures

When designing and performing substanti&e analytical procedures, eitheralone or in combination with tests of details, as substanti&e procedures inaccordance with !" --. /@ara "("9):

K Determine the suitability of particular substanti&eanalytical procedures for gi&en assertions, takingaccount of assessed risks of material misstatementand tests of details, if any, for these assertions;

/@ara "<("AA)

K 1&aluate reliability of data from which the auditor#sexpectation of recorded amounts or ratios isde&eloped, taking account of source, comparabilityand nature and rele&ance of information a&ailable andcontrols o&er preparation; /@ara "A(A)

K De&elop an expectation of recorded amounts orratios and e&aluate whether the expectation issufficiently precise to identify a misstatement that,indi&idually or when aggregated with othermisstatements, may cause the financial statementsto be materially misstated; /@ara "A9) and

K Determine the amount of any difference of recorded amounts from expected &alues that is acceptable

without further in&estigation /@ara "A<)

'he abo&e points need to be documented in substanti&e audit program ofrespecti&e account caption




-&vesti'ati&' Results of A&al4tical Procedures

Whether such differences in&estigated by:

A&al4tical Procedures t$at Assist W$e& ormi&' a& *verallo&clusio&

Whether analytical procedures near the end of the audit ha&e beendesigned and performed to conclude whether the financial statements areconsistent with the understanding of the entity /@ara "A8("AF)

Whether analytical procedures performed identify fluctuations orrelationships that are inconsistent with other rele&ant information or thatdiffer from expected &alues by a significant amount

K $nuiring of management and obtaining appropriateaudit e&idence rele&ant to management#s responses

/@ara ".("A)

K @erforming other audit procedures as necessary inthe circumstances /@ara ".("A)

S "0 ( )



SA >"0 (Revised)


-&itial Audit E&'a'eme&ts *!e&i&' 1ala&ces3 Effective from A!ril 0"# 20"0

"pplicable only in case of $nitial "udit 1ngagement

$nitial audit engagement ( "n engagement in which either :

/i) 'he financial statements for the prior period were not audited; or

/ii) 'he financial statements for the prior period were audited by a predecessorauditor

Whether the recent financial statements, if any, and the predecessor auditor#s

report thereon, if any, are re&iewed for information rele&ant to openingbalances, including disclosures

Whether sufficient appropriate audit e&idence about whether the openingbalances contain misstatements that materially affect the current period#sfinancial statements obtained by:

K Determining whether the prior period#s closing balances ha&e been correctly brought forward to the current period or, when appropriate,

any adjustments ha&e been disclosed as prior period items in thecurrent year#s !tatement of @rofit and Noss;

K Determining whether the opening balances reflect the applicationof appropriate accounting policies; and K @erform one or more of the following: /@ara "A(")

Where the prior year financial statements were audited, perusing the copies ofthe audited financial statements including the other rele&ant documentsrelating to the prior period financial statements;

Sr No Particulars Yes/No/N/A WP Ref Remarks




$f *es:

$f *es:

$f 5o:

1&aluating whether audit procedures performed in the current period pro&idee&idence rele&ant to the opening or

@erforming specific audit procedures to obtain e&idence regarding the openingbalances

Whether audit e&idence obtained that opening balances containmisstatements that could materially affect current period#s financial statements

Whether additional audit procedures performed to determine the effect on thecurrent period#s financial statements

Whether it concludes that such misstatements exist in the current period#sfinancial statements

Whether misstatements communicated with appropriate le&el of managementand those charged with go&ernance in accordance with !" 9.

Whether accounting policies reflected in opening balances ha&e beenconsistently applied in the current period#s f inancial statements

Whether changes in accounting policies ha&e been properly accounted for andadeuately presented and disclosed in accordance with applicable financialreporting framework

Whether prior period#s financial statements were audited by a predecessorauditor and there was a modification to the opinion

Whether unable to obtain sufficient appropriate audit e&idence regarding theopening balances

Whether a ualified opinion or a disclaimer of opinion expressed in accordancewith !" 8.9 /@ara "9)

Sr No Particulars Yes/No/N/A WP Ref Remarks




Whether it concludes that the opening balances contain a misstatement thatmaterially affects current period#s financial statements, and the effect ofmisstatement is not properly accounted for or not adeuately presented ordisclosed

Whether express a ualified opinion or an ad&erse opinion, as appropriate, inaccordance with !" 8.9

Whether it concludes that current period#s accounting policies are notconsistently applied in relation to opening balances in accordance with theapplicable financial reporting framework; or

a change in accounting policies is not properly accounted for or not adeuatelypresented or disclosed in accordance with the applicable financial reportingframework

Whether a ualified opinion or an ad&erse opinion expressed in accordance

with !" 8.9

Whether predecessor auditor#s opinion regarding the prior period#s financialstatements included a modification to the auditor#s opinion that remainsrele&ant and material to the current period#s financial statements

Whether the opinion on current period#s financial statements is modified inaccordance with !" 8.9 and !" 8A. /0e&ised) /@ara "<)

SA >0> (Revised)



SA >0> (Revised)Sr. No. Particulars Yes/No/N/A WP Ref Remarks

Eter&al o&firmatio&s Effective from A!ril 0"# 20"0

When using external confirmation procedures:

$f *es:

K Whether a control o&er external confirmation reuests is maintained

K Whether information to be confirmed or reuested determined /@ara "A)

K Whether appropriate confirming party selected /@ara ")

K Whether the confirmation reuests are properlydesigned, including determining that reuests areproperly addressed and contain return information forresponses to be sent directly to the auditor; and/@ara "-("<)

K Whether follow(up reuests ha&e been sent to theconfirming party, if reuired /@ara "8)

Whether management refuses to allow the auditor to send a confirmationreuest

K Whether $nuire as to management#s reasons for the refusal, and seek audit e&idence as to their &alidity

and reasonableness; /@ara "E)

K Whether e&aluated the implications of management#s refusal on the rele&ant risks of material misstatement, including the risk of fraud, and on the

nature, timing and extent of other audit procedures;and /@ara "F)

K @erform alternati&e audit procedures designed toobtain rele&ant and reliable audit e&idence





$f *es:

$f *es:

$f *es:

$f *es:

Whether the same is recei&ed

$f 5o:

Whether management refuse to allow auditors to send a confirmationreuest which is unreasonable

Whether auditor is unable to obtain sufficient appropriate audit e&idence by

performing alternati&e audit procedures

Whether communicate with those charged with go&ernance in accordancewith !" <. /0e&ised)

2onsidering the abo&e - points whether determine the implications for theaudit and the opinion in accordance with !" 8.9

Whether any factors identifies that gi&e rise to doubts about the reliability ofthe response to a confirmation reuest

Whether further audit e&idence to resol&e those doubts obtained /@ara "AA( "A<)

Whether it determines that a response to a confirmation reuest is notreliable

Whether the implications on the assessment of the rele&ant risks of materialmisstatement, including the risk of fraud, and on the related nature, timingand extent of other audit procedures e&aluated /@ara "A8)

Whether in case of each non(response, an alternati&e audit procedures to

obtain rele&ant and reliable audit e&idence performed /@ara "AE("AF)

Whether a response to =a @ositi&e 2onfirmation 0euest> is necessary toobtain sufficient appropriate audit e&idence and alternati&e audit procedureswill not pro&ide the audit e&idence that auditor reuires




$f *es:

Whether following conditions met: /@ara "-)

$f 5o, whether further audit procedures performed /@ara "("9)

Whether determine the implications for the audit and the opinion inaccordance with !" 8.9 /@ara ".)

$n&estigate exceptions to confirmation to determine indications ofmisstatements /@ara "A(")

Whether negati&e confirmation reuests as the sole substanti&e auditprocedure used

K "ssessed the risk of material misstatement as low and has obtained sufficient appropriate audit

e&idence regarding the operating effecti&eness ofcontrols rele&ant to the assertion;

K 'he population of items subject to negati&e

confirmation procedures comprises a large number ofsmall, homogeneous, account balances, transactionsor conditions;

K " &ery low exception rate is expected; and

K 5ot aware of circumstances or conditions that wouldcause recipients of negati&e confirmation reuests todisregard such reuests

Whether the results of external confirmation procedures pro&ide rele&ant andreliable audit e&idence /@ara "("9)



SA >0" ( Revised )


Effective Date A!ril 0"# 20"0

i&ve&tor4

Whether the physical in&entory counting has been attended

$f 5o:

/a) "ttending physical in&entory count to: /@ara "A("-)

$f *es:

Audit Evide&ceS!ecific o&sideratio&s for Selected -tems3

Whether some physical counts are made or obser&ed on an alternati&edate and performed audit procedures on inter&ening transactions

Whether sufficient appropriate audit e&idence obtained regarding the

existence and condition of in&entory by:

K 1&aluate management#s instructions and procedures for recording and controlling the results of the entity#s physical in&entory

counting /@ara ")

K 3bser&e the performance of management#s count procedures/@ara "9)

K $nspect the in&entory /@ara "<)

K @erform test counts /@ara "8("E)

/b) @erforming audit procedures o&er the entity#s final in&entory records to determine whether they accurately reflect actual in&entory count results

Whether physical in&entory counting is conducted at a date other than thedate of the financial statements




Whether attendance at physical in&entory counting is impracticable

$f *es:

$f *es:

9-5-A5-*N AND 9A-7S

*+,ective

Whether following checks ha&e been performed:

Whether changes in in&entory between the count date and the date of thefinancial statements are properly recorded

whether alternati&e audit procedures to obtain sufficient appropriate audite&idence regarding the existence and condition of in&entory has beenperformed

$f it is not possible to perform the abo&e point, whether an opinion ismodified in the auditor#s report in accordance with !" 8.9

Whether the in&entory under the custody and control of a third party ismaterial to the financial statements

Whether sufficient appropriate audit e&idence obtained regarding theexistence and condition of that in&entory by performing one or both of thefollowing:

0euest confirmation from the third party as to the uantities andcondition of in&entory held on behalf of the entity /@ara "A9)

@erform inspection or other audit procedures appropriate in thecircumstances /@ara "A<)

'o identify litigation and claims in&ol&ing the entity which may gi&e rise toa risk of material misstatement /@ara "A8("AF)

K $nuiry of management and where applicable, others within theentity, including in(house legal counsel




$f answer to any of the abo&e points is *es, then:

$f *es:

Whether an alternati&e audit procedures ha&e been performed

K 0e&iewing minutes of meetings of those charged with go&ernance and correspondence between the entity and its external legal

counsel

K 0e&iewing legal expense accounts /@ara ".)Whether a risk of material misstatement regarding litigation or claimsha&e been identified

3n the basis of audit procedures performed whether it indicates that othermaterial litigation or claims may exist

Whether seek direct communication with the entity#s external legalcounsel through (

K " letter of inuiry, prepared by management and sent by auditors

K 0euesting the entity#s external legal counsel to communicatedirectly with auditors

Whether law, regulation or the respecti&e legal professional body prohibitsthe entity#s external legal counsel from communicating directly with theauditor

Whether management refuses to gi&e the auditor permission tocommunicate or meet with the entity#s external legal counsel

Whether the entity#s external legal counsel refuses to respondappropriately to the letter of inuiry, or is prohibited from responding

Whether auditors are unable to obtain sufficient appropriate audite&idence by performing alternati&e audit procedures

Due to the abo&e - points, whether an opinion is modified in the auditor#sreport in accordance with !" 8.9




SE7EN5 -N*R7A5-*N

Whether testing of the application of such methods done

Whether a written representation has been recei&ed from themanagement and, where appropriate, those charged with go&ernancethat all known actual or possible litigation and claims whose effectsshould be considered when preparing the financial statements ha&e been

disclosed to us and appropriately accounted for and disclosed inaccordance with the applicable financial reporting framework

Whether the auditors ha&e obtained and understood the methods usedby management in determining segment information /@ara "8)

Whether auditors ha&e e&aluated the methods to ensure disclosure inaccordance with the applicable financial reporting framework

Whether analytical procedures or other audit procedures appropriate inthe circumstances performed

SA >00 (Revised)



( )

Sr.No Particulars Yes/No/N/A WP Ref Remarks

Effective Date A!ril 0"# 200<

2ompetence, capabilities and objecti&ity of expert

4nderstanding of the work of expert

Audit Evide&ce

Whether auditor has considered rele&ancy and reliability of informationwhich is to be used as audit e&idence

When information to be used as audit e&idence has been prepared usingthe work of a expert, whether the auditor has considered ha&ing regard tothe significance of the work of expert for auditor#s purposes:

"ppropriateness of expert#s work as audit e&idence for the rele&ant

assertion

Whether auditor has taken an o&er&iew of accuracy and completeness ofinformation to be used as audit e&idence

Whether the means of selecting items for testing are effecti&e for meetingthe audit purpose

Whether auditor has faced the problem of inconsistency and doubt o&er thereliability of audit e&idence and necessary modifications and additions ha&ebeen taken to resol&e the same

Whether the audit e&idence are sufficient and appropriate for express anopinion

Whether the audit procedure includes the following for obtaining ande&aluating audit e&idence:

K $nspection

K 3bser&ation

Sr.No Particulars Yes/No/N/A WP Ref Remarks



0ecalculation

K 2onfirmation

K 0e performance

K "nalytical @rocedureWhether the obtained audit e&idence are sufficient to reduce the audit riskto an acceptably low le&el

Whether the auditor has obtained the more assurance about audit e&idencecollected from different sources or different in nature

Whether the auditor has performed the following procedure for drawingconclusion:

K 0isk assessment procedure

K 'est of controls

K !ubstanti&e procedureWhether the auditor has considered the significance of electroniccommerce and data retention policies used by the entity

$f management refuses to clearly differentiates supplementary information,whether the auditor has explained in his report that such supplementaryinformation has not been audited

SA =>0




Evaluatio& of 7isstateme&ts -de&tified Duri&' t$e Audit Effective Date A!ril 0"# 20"0

Whether the auditor has accumulated misstatements identified during theaudit, other than those that are clearly tri&ial

Whether the auditor has determined that the o&erall audit strategy andaudit plan need to be re&ised if :

a 'he nature of identified misstatements and the circumstances of their occurrence indicate that other

misstatements may exist that, when aggregated withmisstatements accumulated during the audit, could bematerial; or

b 'he aggregate of misstatements accumulated during theaudit approaches materiality determined in accordance with!" -. /0e&ised)

$f, at the auditor#s reuest, management has examined a class oftransactions, account balance or disclosure and corrected misstatementsthat were detected, whether the auditor has performed additional auditprocedures to determine whether misstatements remain

Whether the auditor has communicated on a timely basis allmisstatements accumulated during the audit with the appropriate le&el ofmanagement, unless prohibited by law or regulation

Whether the auditor has reuested management to correct thosemisstatements




$f management refuses to correct some or all of the misstatementscommunicated by the auditor, whether the auditor has obtained anunderstanding of management#s reasons for not making the correctionsand has taken that understanding into account when e&aluating whether

the financial statements as a whole are free from material misstatement

@rior to e&aluating the effect of uncorrected misstatements, whether theauditor has reassessed materiality determined in accordance with !"-. /0e&ised) to confirm whether it remains appropriate in the context ofthe entity#s actual financial results

'he auditor shall determine whether uncorrected misstatements arematerial, indi&idually or in aggregate $n making this determination,whether the auditor has considered :

a 'he si6e and nature of the misstatements, both in relation to particular classes of transactions, account balances or

disclosures and the financial statements as a whole and theparticular circumstances of their occurrence; and

b 'he effect of uncorrected misstatements related to priorperiods on the rele&ant classes of transactions, accountbalances or disclosures, and the financial statements as awhole

SA =02 (Revised)



SA =02 (Revised)


Audit o&sideratio&s Relati&' to a& E&tit4 8si&' a Service *r'a&isatio& Effective Date A!ril 0"# 20"0

Whether auditor was unable to obtain a sufficient understanding from the entity

Whether auditor has obtained an understanding of how entity uses the ser&ices of aser&ice organisation in the entity#s operations, including:

a 'he nature of the ser&ices pro&ided by the ser&ice organisation and thesignificance of those ser&ices to the entity, including the effect thereof on the

entity#s internal control

b 'he nature and materiality of the transactions processed or accounts orfinancial reporting processes affected by the ser&ice organisation

c 'he degree of interaction between the acti&ities of the ser&ice organisation and

those of the entity; andd 'he nature of the relationship between the entity and the ser&ice organisation,

including the rele&ant contractual terms for the acti&ities undertaken by the ser&ice organisation

Whether the auditor has e&aluated the design and implementation of rele&ant controlsat the entity that relate to the ser&ices pro&ided by the ser&ice organi6ation

$f *es, then whether auditor has obtained the understanding from one or more of the

following procedures:

a 3btaining a 'ype A or 'ype report, if a&ailable;

L" ser&ice organisation may engage a ser&ice auditor to report on the description anddesign of its controls /'ype A report) or on the description and design of its controlsand their operating effecti&eness /'ype report)M

b 2ontacting the ser&ice organisation, through the entity, to obtain specificinformation;


Oi iti th i i ti d f i d th t ill id



$f yes, whether the auditor has:

$n responding to assessed risks in accordance with !" --., whether the auditor has:

c Oisiting the ser&ice organisation and performing procedures that will pro&ide the necessary information about the rele&ant controls at the ser&ice

organisation; or

d 4sing another auditor to perform procedures that will pro&ide the necessary

information about the rele&ant controls at the ser&ice organi6ation

Whether in determining the sufficiency and appropriateness of the audit e&idencepro&ided by a 'ype A or 'ype report, the auditor has satisfied himself as to:

a 'he ser&ice auditor#s professional competence and independence from theser&ice organisation

b 'he adeuacy of the standards under which the 'ype A or 'ype report wasissued

Whether the auditor has used 'ype A or 'ype report as audit e&idence to support theauditor#s understanding about the design and implementation of controls at the ser&iceorgani6ation

a 1&aluated the description and design of controls at the ser&ice organisation as ata date or for a period that is appropriate for the auditor#s purposes

b 1&aluated the sufficiency and appropriateness of the e&idence pro&ided by thereport for the understanding of the entity#s internal control rele&ant to the audit

and

c Determined the complementary entity controls identified by the ser&iceorganisation are rele&ant to the entity and, if so, Whether ser&ice organisationhas obtained an understanding of the entity#s design and implementation of suchcontrols


a Determined sufficient appropriate audit e&idence concerning the rele&ant



a 3btaining a 'ype report, if a&ailable;

b @erforming appropriate tests of controls at the ser&ice organisation; or

a Determined sufficient appropriate audit e&idence concerning the rele&antfinancial statement assertions which are a&ailable from records held at theentity; and, if not,

b whether he has performed further audit procedures to obtain sufficient appropriate

audit e&idence or has asked another auditor to perform those procedures at theser&ice organisation on his behalf

When the auditor#s risk assessment included an expectation that controls at theser&ice organisation are operating effecti&ely, whether the auditor has obtained audite&idence about the operating effecti&eness of those controls from one or more of thefollowing procedures:

c 4sing another auditor to perform tests of controls at the ser&ice organisationon behalf of the auditor

Whether the auditor has used a 'ype report as audit e&idence that controls at theser&ice organisation are operating effecti&ely

$f yes, Whether auditor has determined that ser&ice auditor#s report pro&ides sufficientappropriate audit e&idence about the effecti&eness of the controls to support his riskassessment by:

$f yes, Whether the auditor has applied the reuirements with respect to the ser&icespro&ided by the subser&ice organi6ation

Whether the auditor has inuired the management of the entity as to whether theser&ice organisation has reported to the entity, or whether the entity is otherwise awareof, any fraud, non(compliance with laws and regulations or uncorrected misstatementsaffecting the financial statements of the entity

$f yes, whether the auditor has e&aluated how such matters affect the nature, timingand extent of further audit procedures, including the effect on conclusions and auditor#sreport


Whether the auditor has modified the opinion in the auditor#s report if he was unable to



Whether the auditor has modified the opinion in the auditor s report if he was unable toobtain sufficient appropriate audit e&idence regarding the ser&ices pro&ided by theser&ice organisation which are rele&ant to the audit of the entity#s financial statements

'he auditor shall not refer to the work of a ser&ice auditor in the auditor#s reportcontaining an unmodified opinion unless reuired by law or regulation to do so $f suchreference is reuired by law or regulation, the auditor#s report shall indicate that thereference does not diminish the user auditor#s responsibility for the audit opinion

SA ;;0




5$e Auditor:s Res!o&ses to Assessed Risks Effective from A!ril 0"# 200@

1mphasi6ing to the audit team the need to maintain professional skepticism

"ssigning more experienced staff or those with special skills or using experts

@ro&iding more super&ision

5ests of o&trols

Whether the auditor has designed and implemented o&erall responses toaddress the assessed risks of material misstatement at the financialstatement le&el $t include:

$ncorporating additional elements of unpredictability in the selection of furtheraudit procedures to be performed

aking general changes to the nature, timing or extent of audit procedures,for example: performing substanti&e procedures at the period end instead ofat an interim date; or modifying the nature of audit procedures to obtain morepersuasi&e audit e&idence

Whether the auditor has designed and performed further audit procedureswhose nature, timing and extent are based on and are responsi&e to theassessed risks of material misstatement at the assertion le&el

$n designing the further audit procedures to be performed, whether theauditor has considered the reasons for the assessment gi&en to the risk ofmaterial misstatement at the assertion le&el for each class of transactions,account balance, and disclosure


Wh h h di h d i d d f d f l b i



Nature a&d Ete&t of 5ests of o&trols$n designing and performing tests of controls, whether the auditor has:

5imi&' of 5ests of o&trols

8si&' audit evide&ce o+tai&ed duri&' a& i&terim !eriod

8si&' audit evide&ce o+tai&ed i& !revious audits

Whether the auditor has designed and performed tests of controls to obtainsufficient appropriate audit e&idence as to the operating effecti&eness ofrele&ant controls

a @erformed other audit procedures in combination with inuiry to obtainaudit e&idence about the operating effecti&eness of the controls

b Determined whether the controls to be tested depend upon other controls /indirect controls), and if so, whether it is necessary to obtain audit

e&idence supporting the effecti&e operation of those indirect controls

Whether the auditor has tested controls for the particular time, or throughoutthe period, for which the auditor intends to rely on those controls in order topro&ide an appropriate basis for the auditor#s intended reliance

When the auditor obtains audit e&idence about the operating effecti&eness ofcontrols during an interim period, whether the auditor has:

a 3btained audit e&idence about significant changes to those controlssubseuent to the interim period; and

b Determined the additional audit e&idence to be obtained for the remainingperiod /@ara "--("-)

$n determining whether it is appropriate to use audit e&idence about theoperating effecti&eness of controls obtained in pre&ious audits, and, if so, thelength of the time period that may elapse before retesting a control, whetherthe auditor has considered the following:


'h ff ti f th l t f i t l t l i l di th



c 'he effecti&eness of general $'(controls;

a 'he effecti&eness of other elements of internal control, including thecontrol en&ironment, the entity#s monitoring of controls, and the entity#srisk assessment process;

b 'he risks arising from the characteristics of the control, including whether itis manual or automated;

d 'he effecti&eness of the control and its application by the entity, includingthe nature and extent of de&iations in the application of the control noted inpre&ious audits, and whether there ha&e been personnel changes thatsignificantly affect the application of the control;

e Whether the lack of a change in a particular control poses a risk due to

changing circumstances; andf 'he risks of material misstatement and the extent of reliance on the

control

$f the auditor plans to use audit e&idence from a pre&ious audit about theoperating effecti&eness of specific controls, whether the auditor hasestablished the continuing rele&ance of that e&idence by obtaining audite&idence about significant changes in those controls ha&e occurredsubseuent to the pre&ious audit

Whether the auditor has obtained this e&idence by performing inuiry

combined with obser&ation or inspection, to confirm the understanding ofthose specific controls, and:

a $f there ha&e been changes that affect the continuing rele&ance of the audite&idence from the pre&ious audit, the auditor shall test the controls inthe current audit


b $f there ha&e not been such changes the auditor shall test the controls at



Evaluati&' t$e *!erati&' Effective&ess of o&trols

b "dditional tests of controls are necessary; or

Su+sta&tive Procedures

b $f there ha&e not been such changes, the auditor shall test the controls atleast once in e&ery third audit, and shall test some controls each audit toa&oid the possibility of testing all the controls on which the auditor intends torely in a single audit period with no testing of controls in the

subseuent two audit periods

When e&aluating the operating effecti&eness of rele&ant controls, whether theauditor has e&aluated those misstatements that ha&e been detected bysubstanti&e procedures indicate that controls are not operating effecti&ely'he absence of misstatements detected by substanti&e procedures, howe&er,does not pro&ide audit e&idence that controls related to the assertion beingtested are effecti&e

When de&iations from controls upon which the auditor intends to rely aredetected, whether the auditor has made specific inuiries to understand thesematters and their potential conseuences, and has determined whether :

a 'he tests of controls that ha&e been performed pro&ide an appropriatebasis for reliance on the controls;

c 'he potential risks of misstatement need to be addressed using substanti&e procedures /@ara "A)

Whether the auditor has e&aluated that, on the basis of the audit workperformed, the auditor has identified a material weakness in the operatingeffecti&eness of controls

$rrespecti&e of the assessed risks of material misstatement, whether theauditor has designed and performed substanti&e procedures for eachmaterial class of transactions, account balance, and disclosure


Whether the auditor has performed audit procedures to e&aluate whether the



Whether the auditor has performed audit procedures to e&aluate whether theo&erall presentation of the financial statements, including the relateddisclosures, is in accordance with the applicable financial reporting framework

Iased on the audit procedures performed and the audit e&idence obtained,whether the auditor has e&aluated before the conclusion of the audit that theassessments of the risks of material misstatement at the assertion le&elremain appropriate

Whether the auditor has concluded that sufficient appropriate audit e&idencehas been obtained

$f the auditor has not obtained sufficient appropriate audit e&idence as to amaterial financial statement assertion, whether the auditor has attempted toobtain further audit e&idence

$f the auditor is unable to obtain sufficient appropriate audit e&idence, whetherthe auditor has expressed a ualified opinion or a disclaimer of opinion

SA ;20 (Revised)

Sr No Particulars Yes / No / N/A W P Ref Remarks



Sr. No. Particulars Yes / No / N/A W P Ref Remarks

7aterialit4 i& Pla&&i&' a&d Performi&' a& Audit Effective Date A!ril 0"# 20"0

When establishing the o&erall audit strategy, whether the auditor hasdetermined materiality for the financial statements as a whole

$f, in the specific circumstances of the entity, there is one or moreparticular classes of transactions, account balances or disclosures forwhich misstatements of lower amounts be expected to influence theeconomic decisions of users taken on the basis of the financialstatements, whether the auditor has also determined the materiality le&elor le&els to be applied to those particular classes of transactions, accountbalances or disclosures

Whether the auditor has determined performance materiality forpurposes of assessing the risks of material misstatement anddetermining the nature, timing and extent of further audit procedures

Whether the auditor has re&ised materiality for the financial statementsas a whole in the e&ent of becoming aware of information during theaudit that would ha&e caused the auditor to ha&e determined a differentamount /or amounts) initially

$f the auditor concludes that a lower materiality for the financial

statements as a whole than that initially determined is appropriate,whether the auditor has determined whether it is necessary to re&iseperformance materiality, and whether the nature, timing and extent of thefurther audit procedures remain appropriate

SA ;">

Sr No Particulars Yes / No / N/A WP Ref Remarks




Effective Date A!ril 0"# 200@

Whether the auditor has obtained an understanding of the following:

b 'he nature of the entity, including:

-de&tif4i&' a&d Assessi&' t$e Risks of 7aterial 7isstateme&t t$rou'$

8&dersta&di&' t$e E&tit4 a&d -ts E&viro&me&tWhether the auditor has performed risk assessment procedures to pro&idea basis for the identification and assessment of risks of materialmisstatement at the financial statement and assertion le&el

Whether the engagement partner and other key engagement teammembers has discussed the susceptibility of entity#s financial statements tomaterial misstatement and application of applicable financial reportingframework to entity#s facts and circumstances

a 0ele&ant industry, regulatory and other external factors includingthe applicable financial reporting framework

K its operations;

K its ownership and go&ernance structures;

K the types of in&estments that the entity is making and plans to make including in&estments in special Gpurpose entities; and

K the way that the entity is structured and how it is financed; to enable the auditor to understand the classes of transactions,

account balances, and disclosures to be expected in thefinancial statements


c 'he entity#s selection and application of accounting policies,



e 'he measurement and re&iew of the entity#s financial performance

a $dentifying business risks rele&ant to financial reporting objecti&es;

b 1stimating the significance of the risks;

c "ssessing the likelihood of their occurrence; and

d Deciding about actions to address those risks

including the reasons for changes thereto 'he auditor shalle&aluate whether the entity#s accounting policies are appropriatefor its business and consistent with the applicable financialreporting framework and accounting policies used in the rele&antindustry

d 'he entity#s objecti&es and strategies and those related businessrisks that may result in risk of material misstatement

Whether the auditor has obtained an understanding of internal controlrele&ant to the audit

Whether the auditor has e&aluated the design of those controls anddetermine that they ha&e been implemented by performing procedures in

addition to inuiry of the entity#s personnel

Whether the auditor has obtained an understanding of whether the entityhas a process for:

Where the entity has established risk assessment process, whether theauditor has obtained an understanding of it and the results thereof

Whether the auditor has obtained an understanding of the informationsystem, including the related business processes, rele&ant to financialreporting, including the following areas:

a 'he classes of transactions in the entity#s operations that aresignificant to the financial statements;


b 'he procedures, within both information technology /$') andl t b hi h th t ti i iti t d



a the financial statement le&el; and

manual systems by which those transactions are initiated,recorded, processed, corrected as necessary, transferred to thegeneral ledger and reported in the financial statements;

c 'he related accounting records, supporting information andspecific accounts in the financial statements that are used toinitiate, record, process and report transactions; this includes thecorrection of incorrect information and how information istransferred to the general ledger 'he records may be in eithermanual or electronic form;

d How the information system captures e&ents and conditions, other than transactions, that are significant to the financial statements;

e 'he financial reporting process used to prepare the entity#s

financial statements, including significant accounting estimatesand disclosures;

f 2ontrols surrounding journal entries, including non(standard journal entries used to record non(recurring, unusual transactions or

adjustments

Whether the auditor has obtained an understanding of the major acti&itiesthat the entity uses to monitor internal control o&er financial reporting,including those related to those control acti&ities rele&ant to the audit, andhow the entity initiates remedial actions to deficiencies in its controls

Whether the auditor has obtained an understanding of the sources of theinformation used in the entity#s monitoring acti&ities and the basis uponwhich management considers the information to be sufficiently reliable forthe purpose

Whether the auditor has identified and assessed the risks of materialmisstatement at:


b the assertion le&el for classes of transactions, account balances,and disclosures;



to pro&ide a basis for designing and performing further audit procedures

a Whether the risk is a risk of fraud;

c 'he complexity of transactions;

and disclosures;

"s part of the abo&e risk assessment whether the auditor has determinedthat any of the risks identified are, in the auditor#s judgment, a significantrisk

$n exercising this judgment, whether the auditor has excluded the effects ofidentified controls related to the risk and considered at least the following:

b Whether the risk is related to recent significant economic,accounting, or other de&elopments like changes in regulatoryen&ironment, etc and therefore reuires specific attention;

d Whether the risk in&ol&es significant transactions with relatedparties;

e 'he degree of subjecti&ity in the measurement of financialinformation related to the risk, especially those measurementsin&ol&ing a wide range of measurement uncertainty; and

$f Whether the risk in&ol&es significant transactions that are outside thenormal course of business for the entity or that otherwise appear to beunusual

Where there is change in risk assessment during the course of the auditas additional audit e&idence is obtained, whether the auditor has obtainedaudit e&idence from performing further audit procedures or if newinformation is obtained either of which is inconsistent with the audite&idence on which the auditor originally based the assessment, whetherthe auditor has re&ised the assessment and modify the further plannedaudit procedures accordingly

SA >0 (Revised)





oi&' o&cer& Effective from A!ril 0"# 200<


Evaluati&' 7a&a'eme&t:s Assessme&t

When performing risk assessment procedures as reuired by!" -A9 consider whether there are e&ents or conditions thatmay cast significant doubt on the entity#s ability to continue asa going concern $n so doing, determine whether managementhas already performed a preliminary assessment of the entity#sability to continue as a going concern, and: /@ara "("9 )

P $f such an assessment has been performed, whether theassessment has been discussed with management and

determined whether management has identified e&ents orconditions that, indi&idually or collecti&ely, may castsignificant doubt on the entity#s ability to continue as agoing concern and, if so, management#s plans to addressthem; or

P $f such an assessment has not yet been performed,whether the basis for the intended use of the goingconcern assumption has been discussed withmanagement, and inuire of management whether e&entsor conditions exist that, indi&idual ly or collecti&ely, maycast significant doubt on the entity#s ability to continue as

a going concern

Whether e&aluated management#s assessment of the entity#sability to continue as a going concern /@ara "8("F; "AA("A)


$n e&aluating management#s assessment of the entity#s abilityto continue as a going concern, whether co&er the same



Period 1e4o&d 7a&a'eme&t:s Assessme&t

period as that used by management to make its assessmentas reuired by the applicable financial reporting framework, orby law or regulation if it specifies a longer period /@ara "A.(

"A)

$f management#s assessment of the entity#s ability to continueas a going concern co&ers less than twel&e months from thedate of the financial statements as defined in !" 9<. whethera reuest was made to management to extend its assessmentperiod to at least twel&e months from that date /@ara "A.(

"A)

Whether management#s assessment includes all rele&antinformation of which auditor are aware as a result of the audit

Whether inuiry of management done as to its knowledge ofe&ents or conditions beyond the period of management#sassessment that may cast significant doubt on the entity#sability to continue as a going concern (Para A13–A14)

Additio&al Audit Procedures W$e& Eve&ts or co&ditio&sAre -de&tified

When e&ents or conditions ha&e been identified that may cast

significant doubt on the entity#s ability to continue as a goingconcern, whether obtained sufficient appropriate audite&idence to determine whether or not a material uncertaintyexists through performing additional audit procedures,including consideration of mitigating factors 'hese proceduresshall include: /@ara "A9)


P When management has not yet performed an assessment of the entity#s ability to continue as a going concern,



Audit o&clusio&s a&d Re!orti&'

reuesting management to make its assessment

P 1&aluating management#s plans for future actions inrelation to its going concern assessment, whether theoutcome of these plans is likely to impro&e the situationand whether management#s plans are feasible in thecircumstances /@ara "A<)

P When the entity has prepared a cash flow forecast, andanalysis of the forecast is a significant factor inconsidering the future outcome of e&ents or conditions inthe e&aluation of management#s plans for future action:/@ara "A8("AE)

1&aluating the reliability of the underlying data generated toprepare the forecast; and

Determining whether there is adeuate support for theassumptions underlying the forecast

P 2onsidering whether any additional facts or informationha&e become a&ailable since the date on whichmanagement made its assessment

P 0euesting written representations from management and, where appropriate, those charged with go&ernance,

regarding their plans for future action and the feasibility ofthese plans


Iased on the audit e&idence obtained, is it conclude whether,in the auditor#s judgment, a material uncertainty exists relatedt t diti th t i di id ll ll ti l



to e&ents or conditions that, indi&idually or collecti&ely, maycast significant doubt on the entity#s ability to continue as agoing concern " material uncertainty exists when the

magnitude of its potential impact and likelihood of occurrenceis such that, in the auditor#s judgment, appropriate disclosureof the nature and implications of the uncertainty is necessaryfor :

P $n the case of a fair presentation financial reportingframework, the fair presentation of the financialstatements, or

P $n the case of a compliance framework, the financialstatements not to be misleading /@ara "AF)

8se of oi&' o&cer& Assum!tio& A!!ro!riate +ut a7aterial 8&certai&t4 Eists

When it concludes that the use of the going concernassumption is appropriate in the circumstances but a materialuncertainty exists, is it determine whether the financialstatements:

P "deuately describe the principal e&ents or conditions that may cast significant doubt on the entity#s ability to

continue as a going concern and management#s plans todeal with these e&ents or conditions; and

P Disclose clearly that there is a material uncertainty related to e&ents or conditions that may cast significant doubt on

the entity#s ability to continue as a going concern and,therefore, that it may be unable to realise its assets anddischarge its liabilities in the normal course of business/@ara ".)


$f adeuate disclosure is made in the financial statements,whether express an unmodified opinion and include an1mphasis of atter para in the auditor#s report to:



8se of oi&' o&cer& Assum!tio& -&a!!ro!riate

7a&a'eme&t 8&illi&' to 7ake or Ete&d -ts Assessme&t

ommu&icatio& it$ 5$ose $ar'ed it$ over&a&ce

1mphasis of atter para in the auditor s report to:

P Highlight the existence of a material uncertainty relating to

the e&ent or condition that may cast significant doubt onthe entity#s ability to continue as a going concern; and to

P Draw attention to the note in the financial statements that discloses the matters set out in para AE /!ee !" 8.<)

/@ara "A(")

$f adeuate disclosure is not made in the financial statements,whether express a ualified or ad&erse opinion, as appropriate/!ee !" 8.9) Whether stated in the auditor#s report that thereis a material uncertainty that may cast significant doubt aboutthe entity#s ability to continue as a going concern /@ara "-(

")

$f the financial statements ha&e been prepared on a goingconcern basis but, in the auditor#s judgment, management#suse of the going concern assumption in the financialstatements is inappropriate, whether expresses an ad&erseopinion /@ara "9("<)

$f management is unwilling to make or extend its assessmentwhen reuested to do so by the auditor, whether consider theimplications for the auditor#s report /@ara "8)


4nless all those charged with go&ernance are in&ol&ed inmanaging the entity, the auditor shall communicate with thosecharged with go&ernance e&ents or conditions identified that



Si'&ifica&t Dela4 i& t$e A!!roval of i&a&cial Stateme&ts

charged with go&ernance e&ents or conditions identified thatmay cast significant doubt on the entity#s ability to continue asa going concern !uch communication with those charged with

go&ernance shall include the following:

P Whether the e&ents or conditions constitute a materialuncertainty;

P Whether the use of the going concern assumption isappropriate in the preparation and presentation of thefinancial statements; and

P 'he adeuacy of related disclosures in the financialstatements

When there is significant delay in the appro&al of the financialstatements by management or those charged with go&ernanceafter the date of the financial statements, whether inuire as tothe reasons for the delay

When the auditor belie&es that the delay could be related toe&ents or conditions relating to the going concern assessment,whether perform those additional audit procedures necessary,as described in para A<, as well as consider the effect on theauditor#s conclusion regarding the existence of a material

uncertainty, as described in para A8

SA >@0 (Revised)




Writte& Re!rese&tatio&s Effective from A!ril 0"# 200<

7a&a'eme&t from W$om Writte& Re!rese&tatio&s Re%uested

Writte& Re!rese&tatio&s a+out 7a&a'eme&t:s Res!o&si+ilities

Pre!aratio& of t$e i&a&cial Stateme&ts

-&formatio& Provided a&d om!lete&ess of 5ra&sactio&s

Descri!tio& of 7a&a'eme&t:s Res!o&si+ilities i& t$e Writte&

Re!rese&tatio&s

Whether a reuest written representations from management withappropriate responsibilities for the financial statements andknowledge of the matters concerned was made /@ara "("E)

Whether a reuest to management to pro&ide a writtenrepresentation that it has fulfilled its responsibility for the preparation

of the financial statements in accordance with the applicable financialreporting framework, including where rele&ant their fair presentation,as set out in the terms of the audit engagement/@ara "F("AA, "A<,

")

Whether a reuest to management to pro&ide a writtenrepresentation that it has pro&ided the auditor with all rele&antinformation and access as agreed in the terms of the auditengagement, and that all transactions ha&e been recorded and arereflected in the financial statements has been made /@ara "F("AA,

"A<, ")


Whether anagement#s responsibilities shall be described in thewritten representations reuired by para F and A. in the manner inwhich these responsibilities are described in the terms of the audit



*t$er Writte& Re!rese&tatio&s

Date of a&d Period(s) overed +4 Writte& Re!rese&tatio&s

orm of Writte& Re!rese&tatio&s

Dou+t as to t$e Relia+ilit4 of Writte& Re!rese&tatio&s

which these responsibilities are described in the terms of the auditengagement

3ther !"s reuire the auditor to reuest written representations $f, inaddition to such reuired representations, the auditor determines thatit is necessary to obtain one or more written representations tosupport other audit e&idence rele&ant to the financial statements orone or more specific assertions in the financial statements, whether areuest for such other written representations has been made /@ara

"A("A9, "A<, ")

Whether the date of the written representations shall be as near aspracticable to, but not after, the date of the auditor#s report on thefinancial statements

Whether the written representations is in the form of a representationletter addressed to the auditor

$f law or regulation reuires management to make written publicstatements about its responsibilities, and the auditor determines thatsuch statements pro&ide some or all of the representations reuiredby para F or A., whether the rele&ant matters co&ered by such

statements need not be included in the representation letter /@ara "A("-)

Dou+t as to t$e Relia+ilit4 of Writte& Re!rese&tatio&s a&dRe%uested Writte& Re!rese&tatio&s Not Provided


$f the auditor has concerns about the competence, integrity, ethical&alues or diligence of management, or about its commitment to orenforcement of these whether determine the effect that such



Re%uested Writte& Re!rese&tatio&s Not Provided

enforcement of these, whether determine the effect that suchconcerns may ha&e on the reliability of representations /oral orwritten) and audit e&idence in general /@ara "<("8)

$n particular, if written representations are inconsistent with otheraudit e&idence, whether perform audit procedures to attempt toresol&e the matter

$f the matter remains unresol&ed, whether reconsider the assessmentof the competence, integrity, ethical &alues or diligence ofmanagement, or of its commitment to or enforcement of these, andshall determine the effect that this may ha&e on the reliability ofrepresentations /oral or written) and audit e&idence in general /@ara

"9)

$f it concludes that the written representations are not reliable,whether an appropriate actions, including determining the possibleeffect on the opinion in the auditor#s report in accordance with !" 8.9/0efer @ara AF)

$f management does not pro&ide one or more of the reuested writtenrepresentations, whether the following has been done:

F Discuss the matter with management;

F 0e(e&aluate the integrity of management and e&aluate the effect

that this may ha&e on the reliability of representations /oral orwritten) and audit e&idence in general; and

F 'ake appropriate actions, including determining the possible

effect on the opinion in the auditor#s report in accordance with !"8.9, ha&ing regard to the reuirement in para AF of this !"


Writte& Re!rese&tatio&s a+out 7a&a'eme&t:s Res!o&si+ilities

Wh th di l i i i th fi i l t t t i



Whether disclaim an opinion on the financial statements inaccordance with !" 8.9 if: /@ara "E("F)

F $t concludes that there is sufficient doubt about the integrity ofmanagement such that the written representations reuired bypara F and A. are not reliable; or

F anagement does not pro&ide the written representations

reuired by para F and A.

SA ?00




8si&' t$e Work of A&ot$er Auditor Effective Date A!ril "# 2002

+or this purpose the auditor would consider:

Whether the principal auditor determined how the work of the otherauditor will affect the audit

Whether the auditor has considered that his own participation issufficient to be able to act as the principal auditor

a the materiality of the portion of the financial information whichthe principal auditor audits;

b the principal auditorQs degree of knowledge regarding thebusiness of the components;

c the risk of material misstatements in the financial informationof the components audited by the other auditor; and

d the performance of additional procedures as set out in this !" regarding the components audited by other auditor resulting in

the principal auditor ha&ing significant participation in suchaudit

Whether the principal auditor has considered the professionalcompetence of the other auditor in the context of specificassignment if the other auditor is not a member of the $nstitute of2hartered "ccountants of $ndia

Whether the principal auditor has performed following proceduresto obtain sufficient appropriate audit e&idence, that the work of theother auditor is adeuate for the principal auditorQs purposes, in thecontext of the specific assignment

a Whether the principal auditor has ad&ised other auditor aboutthe use of his work and report and made arrangements forcoordination of their efforts at planning stage


b Whether the principal auditor has informed the other auditor of matters such as areas reuiring special consideration,

procedures for the identification of inter(component



transactions that may reuire disclosure and the time(table forcompletion of audit

c Whether the principal auditor has ad&ised the other auditor ofthe significant accounting, auditing and reporting reuirementsand obtain representation as to compliance with them

L'he principal auditor might discuss with the other auditor the auditprocedures applied or re&iew a written summary of the otherauditor#s procedures and findings which may be in the form of acompleted uestionnaire or check(list 'he principal auditor mayalso wish to &isit the other auditor 'he nature, timing and extent ofprocedures will depend on the circumstances of the engagementand the principal auditorQs knowledge of the professional

competence of the other auditor 'his knowledge may ha&e beenenhanced from the re&iew of the pre&ious audit work of the otherauditorM

Whether the principal auditor ha&e considered the significantfindings of the other auditor

When the principal auditor concludes, based on his procedures,that the work of the other auditor cannot be used and the principalauditor has not been able to perform sufficient additional

procedures regarding the financial information of the componentaudited by the other auditor, whether the principal auditor ha&eexpressed a ualified opinion or disclaimer of opinion due tolimitation on the scope of audit


When the principal auditor has to base his opinion on the financialinformation of the entity as a whole relying upon the statementsand reports of the other auditors, whether his report clearly statesth di i i f ibilit f th fi i l i f ti f th



the di&ision of responsibility for the financial information of theentity by indicating the extent to which the financial information of

components audited by the other auditors ha&e been included inthe financial information of the entity, eg, the number of di&isions%branches% subsidiaries or other components audited by otherauditors

SA ?"0 (Revised)


8si&' 5$e Work of -&ter&al Auditors Effective Date A!ril 0" 20"0



8si&' 5$e Work of -&ter&al Auditors Effective Date A!ril 0"# 20"0

a 'he objecti&ity of the internal audit function

b 'he technical competence of the internal auditors

Whether external auditor has planned to rely on the work of theinternal auditor

$f yes, whether a general e&aluation of the internal audit function isdone from the perspecti&e of:

c Whether the work of the internal auditors is likely to be carriedout with due professional care

d Whether there is likely to be effecti&e communication betweenthe internal auditors and the external auditor

Whether the external auditor using specific work of the internalauditors has re(e&aluated his assessment of the risks of materialmisstatement /@ara ")

Whether the external auditor has considered the following indetermining the planned effect of the work of the internal auditors onthe nature, timing or extent of the external auditor#s procedures:

a 'he nature and scope of specific work performed, or to beperformed, by the internal auditors

b 'he assessed risks of material misstatement at the assertionle&el for particular classes of transactions, account balances,and disclosures

c 'he degree of subjecti&ity in&ol&ed in the e&aluation of the audite&idence gathered by the internal auditors in support of therele&ant assertions


Whether external auditor has e&aluated following, to determine theadeuacy of specific work performed by the internal auditors for theexternal auditor#s purposes:



b 'he work was properly super&ised, re&iewed and documented

a 'he work was performed by internal auditors ha&ing adeuatetechnical training and proficiency

c "deuate audit e&idence has been obtained to enable theinternal auditors to draw reasonable conclusions

d 2onclusions reached are appropriate in the circumstances andany reports prepared by the internal auditors are consistent withthe results of the work performed

e "ny exceptions or unusual matters disclosed by the internalauditors are properly resol&ed

Whether the external auditor using specific work of the internalauditors, has documented conclusions regarding the e&aluation ofthe adeuacy of the work of the internal auditors, and the auditprocedures performed by the external auditor on that work


8si&' t$e Work of a& Auditor:s E!ert Effective Date A!ril 0" 20"0

SA ?20 (Revised)



8si&' t$e Work of a& Auditor s E!ert Effective Date A!ril 0"# 20"0

a 'he nature of the matter to which that expert#s work relates

c 'he significance of that expert#s work in the context of the audit

b 1&aluate the adeuacy of that work for the auditor#s purposes

Whether auditor has determined to use the work of an auditor#sexpert to obtain sufficient appropriate audit e&idence in an expertisefield other than accounting or auditing

$f auditor has determined to use the work of an auditor#s expert,whether he has considered the following in determining the nature,timing and extent of auditor#s procedures:

b 'he risks of material misstatement in the matter to which thatexpert#s work relates

d 'he auditor#s knowledge of and experience with pre&iouswork performed by that expert

e Whether that expert is subject to the auditor#s firm#suality control policies and procedures

Whether auditor has e&aluated that the auditor#s expert hasnecessary competence, capabilities and objecti&ity for the auditor#spurposes

Whether auditor has obtained a sufficient understanding of the field

of expertise of the auditor#s expert to enable him to:

a Determine the nature, scope and objecti&es of that expert#swork for the auditor#s purposes


a 'he nature, scope and objecti&es of that expert#s work

Whether auditor has agreed, in writing when necessary, with theauditor#s expert on the following matters:



b 'he respecti&e roles and responsibilities of the auditor andthat expert

c 'he nature, timing and extent of communication between the auditor and that expert, including the form of any report to be

pro&ided by that expert

d 'he need for the auditor#s expert to obser&e confidentialityreuirements

Whether auditor has e&aluated the adeuacy of the auditor#s expert#swork for the auditor#s purposes, considering:

a 'he rele&ance and reasonableness of that expert#s findings or conclusions, and their consistency with other audit

e&idence

b $f that expert#s work in&ol&es use of significant assumptionsand methods, the rele&ance and reasonableness of thoseassumptions and methods in the circumstances

c $f that expert#s work in&ol&es the use of source data that issignificant to that expert#s work, the rele&ance,completeness, and accuracy of that source data

$f the auditor has concluded that the work of the auditor#s expert isnot adeuate for the his purposes, whether auditor has:

a "greed with that expert on the nature and extent of furtherwork to be performed by that expert or


b @erformed further audit procedures appropriate to thecircumstances

Whether auditor has made reference to auditor#s expert in anauditor#s report?



auditor s report?

$f yes, whether such reference is reuired by law or regulation or suchreference is rele&ant to an understanding of a modification to theauditor#s opinion in his report

$f reference to the work of an auditor#s expert in the auditor#s reporthas been made for understanding of a modification to the auditor#sopinion in auditor#s report, whether permission of the auditor#s expertbefore making such a reference was obtained

$f reference to the work of an auditor#s expert in the auditor#s reporthas been made, whether the auditor has indicated in the auditor#sreport that such reference does not reduce the auditor#s responsibilityfor that opinion

SA 00 (Revised)




ormi&' a& *!i&io& a&d Re!orti&' o& i&a&cial Stateme&ts Effective Date A!ril 0"# 20""

c 'he accounting estimates made by management are reasonable;

$n order to form an opinion on financial statements, whether the auditor hasconcluded as to, whether the auditor has obtained reasonable assurance aboutwhether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error 'hat conclusion shall take intoaccount:

a 'he auditor#s conclusion, in accordance with !" --., whether sufficientappropriate audit e&idence has been obtained; and

b 'he auditor#s conclusion, in accordance with !" 9., whether uncorrectedmisstatements are material, indi&idually or in aggregate;

Whether auditor has e&aluated, in all material respects, that the financialstatements prepared are in accordance with the reuirements of the applicablefinancial reporting framework and in particular in &iew of the reuirements of theapplicable financial reporting framework whether the auditor has e&aluated thefollowing:

a 'he financial statements adeuately disclose the significant accountingpolicies selected and applied

b 'he accounting policies selected and applied are consistent with theapplicable financial reporting framework and are appropriate

d 'he information presented in the financial statements is rele&ant, reliable,comparable and understandable


e 'he financial statements pro&ide adeuate disclosures to enable theintended users to understand the effect of material transactions and e&entson the information con&eyed in the financial statements

f 'he terminology used in the financial statements, including the title of each



a 'he o&erall presentation, structure and content of the financial statements

Whether the auditor has included following in audit report

a 'itle

b "ddressee

e !ection $ndicating "uditor#s 0esponsibility

f !ection Describing an "udit

h "uditors 3pinion

gy , gfinancial statement, is appropriate

Whether the auditor has e&aluated as to whether the financial statementsachie&e fair presentation which shall include consideration of:

b Whether the financial statements, including the related notes, represent the underlying transactions and e&ents in a manner that achie&es fair

presentation

Whether the auditor has expressed an unmodified opinion when auditorconcludes that financial statements are prepared, in all material respects, inaccordance with applicable financial reporting framework

c $ntroductory !ection identifying the financial statements that ha&e beenaudited along with significant accounting policies and other explanatoryinformation and specify the date or period co&ered by such financialstatements

d !ection $ndicating anagement#s 0esponsibility for the +inancial!tatements

g +act that the auditor has obtained is sufficient and appropriate audite&idence to pro&ide a basis for the auditor#s opinion


i Date of the report

j @lace of signature

k "uditor#s signature and embership 5umber

l +i 0 i t ti 5 b / t i d d !" 8.. b t i d



a 'itle

b "n addressee, as reuired by the circumstances of the engagement

c "n introductory paragraph that identifies the financial statements audited

f " reference to !tandards on "uditing and the law or regulation; and

g " description of an audit in accordance with those !tandards

i 'he auditor#s signature

j 'he date of the auditor#s report

k 'he place of signature

l +irm 0egistration 5umber /not reuired under !" 8.. but reuired as per

notification issued by $2"$)Whether the auditor is reuired by any law or regulation to use a specific layoutor wording of the auditor#s report

$f yes, then the auditor#s report shall refer to !tandards on "uditing only if theauditor#s report includes, at a minimum, each of the following elements

d " description of the responsibility of management for the preparation of the

financial statements

e " description of the auditor#s responsibility to express an opinion on thefinancial statements and the scope of the audit, that includes:

h "n opinion paragraph containing an expression of opinion on the financialstatements and a reference to the applicable financial reporting frameworkused to prepare the financial statements

Whether the auditor has complied with the $nternational !tandards on "uditing/$!"s) in the conduct of the audit in addition to the auditing !tandards issued bythe $2"$


$f yes to abo&e, then the auditor#s report may refer to $nternational !tandards on "uditing in addition to the national auditing standards only if

'here is no conflict between the reuirements in the national auditing standardsand those in $!"s that would lead the auditor /i) to form a different opinion, or



/ ) p/ii) not to include an 1mphasis of atter paragraph that, in the particular

circumstances, is reuired by $!"s and

'he auditor#s report includes, at a minimum, each of the elements set in para-/a)G/i)

Whether the auditor has identified the national auditing standards being the!tandards on "uditing issued by the $nstitute of 2hartered "ccountants of $ndia

Whether supplementary information that is not reuired by the applicablefinancial reporting framework is presented with the audited f inancial statements

$f yes to abo&e, whether the auditor has e&aluated that supplementaryinformation is clearly differentiated from the audited financial statements

$f management refuses to clearly differentiates supplementary information,whether the auditor has explained in his report that such supplementaryinformation has not been audited

SA 0?

Sr.No. Particulars Yes / No / N/A WP Ref Remarks

Effective Date A!ril 0" 20""Em!$asis of 7atter Para a&d *t$er 7atter Para i& t$e -&de!e&de&t



Effective Date A!ril 0"# 20""Em!$asis of 7atter Para a&d *t$er 7atter Para i& t$e -&de!e&de&t

Auditor:s Re!ort

When an =1mphasis of atter> para is included in the auditor#s report,Whether the auditor has considered following:

F =1mphasis of atter> para is included immediately after the

3pinion para in the auditor#s report

F 4se of heading =1mphasis of atter> or other appropriate

heading

F a clear reference to the matter being emphasised is included in

the para and where rele&ant disclosures that fully describe thematter can be found in the financial statements and

F $ndication that the auditor#s opinion is not modified in respect of

the matter emphasised /@ara "-(" of !" 8.<)

Whether the "uditor has communicated with those charged withgo&ernance regarding inclusion of an 1mphasis of atter or an 3theratter para in the auditor#s report and the proposed wording of the para

SA 0>




7odificatio&s to t$e *!i&io& i& t$e -&de!e&de&t Auditor:s Re!ort Effective Date A!ril 0"# 20""

Whether the auditor has modified the opinion in the auditor#s report when:

$f the answer to abo&e uestion is *es,$ ( Whether the auditor has expressed a ualified opinion when:

/a) he concludes that, based on the audit e&idence obtained, thefinancial statements as a whole are not free from materialmisstatement; or

/b) he is unable to obtain sufficient appropriate audit e&idence toconclude that the financial statements as a whole are free frommaterial misstatement

/a) ha&ing obtained sufficient appropriate audit e&idence which conclude that misstatements, indi&idually or in the aggregate, are material, but not per&asi&e, to the financial statements; or

/b) he was unable to obtain sufficient appropriate audit e&idence onwhich to base the opinion, but he concluded that the possible

effects on the financial statements of undetected misstatementscould be material but not per&asi&e

$$ ( Whether the auditor has expressed an ad&erse opinion when he has obtained sufficient appropriate audit e&idence, concluded thatmisstatements, indi&idually or in the aggregate, are both materialand per&asi&e to the financial statements


$$$ ( Whether the auditor has expressed disclaimer of opinion when hewas unable to obtain sufficient appropriate audit e&idence to basethe opinion, and he concluded that the possible effects on thefinancial statements of undetected misstatements could be bothmaterial and per&asi&e



$f yes,

material and per&asi&e

Whether the auditor has reuested management to remo&e the limitationon the scope of audit when after accepting the engagement, he becameaware that management has imposed a limitation on the scope of theaudit

$f management has refused to remo&e the limitation as referred abo&e,whether the auditor has communicated the matter to those charged withgo&ernance and whether he determined the possibility of performingalternati&e procedures to obtain sufficient appropriate audit e&idence

When the auditor considers i t necessary to express an ad&erse opinion or

disclaim an opinion on the financial statements as a whole, to ensure thatthe auditor#s report shall not also include an unmodified opinion withrespect to the same financial reporting framework on a single financialstatement or one or more specific elements, accounts or items of afinancial statement

Whether the auditor has placed modification para immediately before theopinion para in the auditor#s report and has used the heading =Iasis forualified 3pinion>, =Iasis for "d&erse 3pinion>, or =Iasis for Disclaimerof 3pinion>, as appropriate

Whether there is a material misstatement of the financial statements that

relates to specific amounts in the financial statements /includinguantitati&e disclosures)

/a)Whether the auditor has included in the basis for modification para adescription and uantification of the financial effects of the misstatement

/b)$f it is not practicable to uantify the financial effects, whether theauditor has so stated in the basis for modification para


Whether there is a material misstatement of the financial statements thatrelates to narrati&e disclosures

$f yes, the auditor has included in the basis for modification para anexplanation of how the disclosures are misstated



$f yes, whether the auditor has:

/a) discussed the non(disclosure with those charged with go&ernance

Whether there is a material misstatement of the financial statements thatrelates to the non( disclosure of information reuired to be disclosed

/b) described in the basis for modification para the nature of the omitted information; and

/c) 4nless prohibited by law or regulation, included the omitteddisclosures and the auditor has obtained sufficient appropriate audite&idence about the omitted information

$f the modification results from an inability to obtain sufficient appropriateaudit e&idence, whether the auditor has included in the basis formodification para, the reasons for that inability

1&en if the auditor has expressed an ad&erse opinion or disclaimed anopinion on the financial statements, whether the auditor has described inthe basis for modification para the reasons for any other matters of whichthe auditor is aware that would ha&e reuired a modification to theopinion, and the effects thereof

Whether the auditor has used the heading =ualified 3pinion>, ="d&erse

3pinion>, or =Disclaimer of 3pinion>, as appropriate, for the opinion parawhile modifying the audit opinion

Whether the auditor has amended the description of the auditor#sresponsibility as to state that the auditor belie&es that the audit e&idencewhich the auditor has obtained is sufficient and appropriate to pro&ide abasis for the auditor#s modified audit opinion while expressing an ualifiedor ad&erse opinion


When the auditor disclaims an opinion due to an inability to obtainsufficient appropriate audit e&idence, whether the auditor ha&e amendedthe introductory para of the auditor#s report to state that the auditor wasengaged to audit the financial statements Whether the auditor has alsoamended the description of the auditor#s responsibility and the description



p p y p

of the scope of the audit to state only the following: =3ur responsibility isto express an opinion on the financial statements based on conductingthe audit in accordance with !tandards on "uditing issued by the $nstituteof 2hartered "ccountants of $ndia Iecause of the matter/s) described inthe Iasis for Disclaimer of 3pinion para, howe&er, we were not able toobtain sufficient appropriate audit e&idence to pro&ide a basis for an auditopinion>

Whether the auditor has communicated with those charged withgo&ernance the circumstances that led to the expected modification andthe proposed wording of the modification




When the auditor#s report on the prior period, as pre&iously issued,included a ualified opinion, disclaimer of opinion, or ad&erse opinion andthe matter which ga&e rise to the modification in the audit report isunresol&ed whether the auditor#s report has been modified regarding thecorresponding figures



$f yes then in such circumstances,

$f yes,

/c) 'he date of that report /@ara "8)

om!arative i&a&cial Stateme&ts

Whether the auditor has identified material misstatement that affects theprior period financial statements on which an unmodified report has beenpre&iously issued

Whether the misstatement has been dealt with as reuired under theapplicable financial reporting f ramework

if not, whether the auditor has issued a modified report on the currentperiod financials modified with respect to the corresponding figuresincluded therein

Whether the financial statements of the prior period were audited by apredecessor auditor,

whether the auditor has stated in an 3ther atter para in the auditor#sreport:

/a) 'hat the financial statements of the prior period were audited by thepredecessor auditor;

/b) 'he type of opinion expressed by the predecessor auditor and, if the

opinion was modified, the reasons therefor; and

When the prior period financial statements are not audited, whether theauditor has stated in the auditor#s report that the corresponding figures areunaudited


When comparati&e financial statements are presented, whether theauditor#s opinion refer to each period for which financial statements arepresented and on which an audit opinion is expressed /@ara "EG"F)

When reporting on prior period financial statements in connection with thecurrent periodQs audit whether the auditorQs opinion on such prior period



$f yes,

$f yes,

/c) 'he date of that report,

$f yes,

current period s audit, whether the auditor s opinion on such prior periodfinancial statements diffeers from the opinion the auditor pre&iouslyexpressed,

whether the auditor has disclosed the substanti&e reasons for the differentopinion in an 3ther atter para in accordance with !" 8.<

Whether the financial statements of the prior period were audited by apredecessor auditor

in addition to expressing an opinion on the current period#s financialstatements, the auditor shall state in an 3ther atter para:

/a) 'hat the financial statements of the prior period were audited by apredecessor auditor;

/b) 'he type of opinion expressed by the predecessor auditor and, if theopinion was modified, the reasons therefor; and

unless the predecessor auditor#s report on the prior period#s financialstatements is re&ised with the financial statements

Whether the auditor concludes that a material misstatement exists thataffects the prior period financial statements on which the predecessorauditor had pre&iously reported without modification,


the auditor has communicated the misstatement with the appropriate le&elof management and those charged with go&ernance and reuested thatthe predecessor auditor be informed $f the prior period financialstatements are amended and the predecessor auditor agrees to issue anew auditor#s report on the amended financial statements of the prior



period, the auditor shall report only on the current period

When the prior period financial statements were not audited, whether theauditor has stated in an 3ther atter para that the comparati&e financialstatements are unaudited

SA @0>


Effective Date A!ril 0"# 20""S!ecial o&sideratio&sGAudits of Si&'le i&a&cial Stateme&ts a&d S!ecificEleme&ts# Accou&ts or -tems of a i&a&cial Stateme&t



$f yes,

Whether the auditor has complied with all !"s rele&ant to the "udit as necessary inthe circumstances of the engagement as reuired by !" ..

Whether the auditor has determined the acceptability of the financial reportingframework applied in the preparation of the financial statements as reuired by !"A.

!" A. /0e&ised) reuires that the agreed terms of the audit engagement includethe expected form of any reports to be issued by the auditor

Whether the auditor has considered that the expected form of opinion is appropriate

in the circumstancesWhether the auditor has expressed a separate opinion for each engagement whenhe undertakes an engagement to report on a single financial statement or on aspecific element of a financial statement in conjunction with an engagement to auditthe entity#s complete set of financial statements

Whether the opinion in the auditor#s report on an entity#s complete set of financialstatements is modified, or that report includes an 1mphasis of atter para or an3ther atter para

/a) Whether the auditor has determined the effect of this on the auditor#s report on a single financial statement or on a specific element of those financial

statements

/b) Whether the auditor has not expressed an unmodified opinion on the singlefinancial statement or of the specific element of a financial statement


Whether the auditor has ensured that he has not included in the same auditor#sreport an unmodified opinion on a single financial statement or on a specificelement that forms part of entity#s complete set of financial statements where hehas expressed modified opinion on entity#s complete set of financial statements/0efer !" 8.9)



SA @00

Sr. No. Particulars Yes / No /N/A WP Ref Remarks

Effective Date A!ril 0"# 20""Audits of i&a&cial Stateme&ts Pre!ared i& Accorda&ce it$ S!ecialPur!ose rameorks



Whether the auditor has obtained an understanding of:

/a) 'he purpose for which the financial statements are prepared;

/b) 'he intended users; and

/c) 'he steps taken by management to determine that the applicablefinancial reporting framework is acceptable in the circumstances

Whether the auditor has ensured the compliance with all !"s rele&ant to the "udit

Whether the auditor has determined application of the !"s reuires specialconsideration in the circumstances of the engagement /0efer !" ../0e&ised))

Whether the auditor has obtained an understanding of the entity#s selectionand application of accounting policies /0efer !" -A9)

Whether the auditor has e&aluated that the financial statements adeuatelyrefer to or describe the applicable financial reporting framework

Whether the auditor#s report describes the purpose for which the financial

statements are prepared and the intended users, or reference is made to anote in the special purpose financial statements that contains that information

Sr. No. Particulars Yes / No /N/A WP Ref Remarks

Whether the auditor#s report includes an 1mphasis of atter para alertingusers of the auditor#s report that the financial statements are prepared inaccordance with a special purpose framework and may not be suitable foranother purpose



SA 20

Sr. No. Particulars Yes / No / N/A WP Ref

Effective Date A!ril 0"# 20"05$e Auditor:s Res!o&si+ilit4 i& Relatio& to *t$er -&formatio& i&

D t t i i A dit d i i l St t t



Docume&ts o&tai&i&' Audited i&a&cial Stateme&ts

Whether the auditor has made appropriate arrangements with managementto obtain the other information either prior to the date of the auditor#s reportor if its not possible as soon as practicable

Whether the auditor has read the other information to identify materialinconsistencies, if any, with the audited financial statements

Whether on reading the other information any material inconsistency isidentified

$f yes, whether the auditor has determined the need to re&ise the auditedfinancial statements or the other information

when material inconsistencies identified in 3ther $nformation prior to thedate of the "uditor#s 0eport:

$f re&ision of audited financial statements is necessary and managementrefuses to make re&ision,

F whether auditor has modified the opinion as per !" 8.9 if re&ision of

other information is necessary and management refuses to makere&ision,

F whether the auditor has communicated this matter to those chargedwith go&ernance

F where withdrawal is legally permitted, withdraw from the engagement

Sr. No. Particulars Yes / No / N/A WP Ref

When material inconsistencies identified in other information is obtainedsubseuent to the date of the "uditor#s 0eport and re&ision of auditedfinancial statements is necessary:

Whether auditor has followed the rele&ant reuirements in !" 9<.

/0 i d)



/0e&ised)

While identifying material inconsistencies, if the auditor becomes aware ofan apparent material misstatement of fact

F Whether same is discussed with management

F When, following such discussions, if the auditor still considers that

there is an apparent material misstatement of fact, whether the auditorhas reuested management to consult with a ualified third party

F When management refuses to correct, whether the auditor has notified

those charged with go&ernance of the concern regarding the otherinformation and has taken any further appropriate action

Remarks



Remarks



SA @"0


E&'a'eme&ts to Re!ort o& Summar4 i&a&cial Stateme&ts Effective Date A!ril 0"# 20""

Iefore accepting an engagement to report on summary financial

statements Whether the auditor has:



statements, Whether the auditor has:

P determined that the applied criteria are acceptable /"pplied criteria('he criteria applied by management in the preparation of the

summary financial statements)

P obtained the agreement of management that it acknowledges andunderstands its responsibility

P agree with management the form of opinion to be expressed on thesummary financial statements

Whether the summary financial statements adeuately disclose theirsummarised nature and identify the audited financial statements

When summary financial statements are not accompanied by the auditedfinancial statements, whether they describe clearly:

P +rom whom or where the audited financial statements are a&ailable or

P 'he law or regulation that specifies that the audited financialstatements need not be made a&ailable to the intended users of thesummary financial statements and establishes the criteria for thepreparation of the summary financial statements

Whether the summary financial statements adeuately disclose the appliedcriteria

Whether the summary financial statements agree with or can be re(calculated from the related information in the audited financial statements


Whether the summary financial statements are prepared in accordancewith the applied criteria

Whether the summary financial statements contain the informationnecessary, and are at an appropriate le&el of aggregation, so as not to bemisleading in the circumstances

Wh th dit # t th fi i l t t t i d t d



When the auditor#s report on the summary financial statements is datedlater than the date of the auditor#s report on the audited financialstatements, Whether the auditor#s report on the summary financialstatements state that the summary financial statements and auditedfinancial statements do not reflect the effects of e&ents that occurredsubseuent to the date of the auditor#s report on the audited financialstatements that may reuire adjustment of, or disclosure in, the auditedfinancial statements

When the auditor become aware of facts that existed at the date of the

auditor#s report on the audited financial statements, but of which the auditorpre&iously was unaware, whether the auditor has not issued the auditor#sreport on the summary financial statements until the auditor#s considerationof such facts in relation to the audited financial statements in accordancewith !" 9<. /0e&ised) has been completed

Whether the auditor#s report on summary financial statements includes thefollowing elements:

P " title clearly indicating it as the report of an independent auditor

P "n addressee

P "n introductory para that:

G $dentifies the summary financial statements on which the auditor isreporting, including the title of each statement included in the summaryfinancial statement

G $dentifies the audited financial statements;


G 0efers to the auditor#s report on the audited financial statements, thedate of that report, the fact that an unmodified opinion is expressed onthe audited financial statements

G $f the date of the auditor#s report on the summary financial statementsis later than the date of the auditor#s report on the audited financial

statements, states that the summary financial statements and theaudited financial statements do not reflect the effects of e&ents that



s a e e s, s a es a e su a y a c a s a e e s a d eaudited financial statements do not reflect the effects of e&ents thatoccurred subseuent to the date of the auditor#s report on the auditedfinancial statements and

G " statement indicating that the summary financial statements do notcontain all the disclosures reuired by the financial reporting frameworkapplied in the preparation of the audited financial statements, and thatreading the summary financial statements is not a substitute forreading the audited financial statements

P a description of management#s responsibility for the summary financial statements, explaining that management is responsible for thepreparation of the summary financial statements in accordance withthe applied criteria

P a statement that the auditor is responsible for expressing an opinion on the summary financial statements based on the procedures

reuired by this !"

P a para clearly expressing an opinion

P 'he auditor#s signature along with the firm registration number, and

the membership number assigned by the $nstitute of 2hartered "ccountants of $ndia /$2"$)

P 'he date of the auditor#s report

P 'he place of signature


Whether the auditor has e&aluated the appropriateness of using a differentaddressee when the addressee of the summary financial statements is notthe same as the addressee of the auditor#s report on the audited financialstatements

Whether the auditor has ensured that the auditor#s report on the summary

financial statements is not dated earlier than the date of the auditor#s report



/b) Description of the basis for ad&erse opinion or disclaimer of opinion

pon the audited financial statements

When the auditor#s report on the audited financial statements contains anad&erse opinion or a disclaimer of opinion, whether the auditor#s report onthe summary financial statements contain:

/a) !tatement that the auditor#s report on the audited financial statements contains an ad&erse opinion or disclaimer of opinion;

/c) !tatement that as a result of the ad&erse opinion or disclaimer ofopinion, it is inappropriate to express an opinion on the summaryfinancial statements

Whether the auditor has expressed an ad&erse opinion on the summaryfinancial statements when summary financial statements are notconsistent, in all material respects, with or are not a fair summary of theaudited financial statements, in accordance with the applied criteria, andmanagement does not agree to make the necessary changes

Whether the auditor has included a similar restriction or alert in the

auditor#s report on the summary financial statements which is stated in theauditor#s report on the audited financial statements

$f the audited financial statements contain comparati&es, but the summaryfinancial statements do not, whether the auditor has determinedreasonableness of such omission in the circumstances of the engagement


$f the summary financial statements contain comparati&es that werereported on by another auditor, whether the auditor#s report on thesummary financial statements also contains the matters that !" 8A./0e&ised) reuires the auditor to include in the auditor#s report on theaudited financial statements

Whether the auditor has identified any unaudited supplementaryi f ti t d ith th fi i l t t t hi h i t



$f yes,

$f yes,

information presented with the summary financial statements which is notclearly differentiated from the summary financial statements

P Whether the auditor has asked management to change thepresentation of the unaudited supplementary information

P Whether the auditor#s report on the summary financial statementsexplains that such information is not co&ered by that report whenmanagement refuses to change the presentation

$f on reading the other information, whether the auditor has identified amaterial inconsistency

Whether the auditor has determined summary financial statements or theother information needs to be re&ised

$f on reading the other information, the auditor becomes aware of anapparent material misstatement of fact, Whether the auditor has discussedthe matter with management

SA 220 (Revised)


Hualit4 o&trol for a& Audit of i&a&cial Stateme&ts Effective Date A!ril 0"# 20"0

9eaders$i! Res!o&si+ilities for Hualit4 o& Audits

Whether the engagement partner took the responsibility for the o&erall uality on eachaudit engagement to which he is assigned /@ara "-)



Releva&t Et$ical Re%uireme&ts

Acce!ta&ce a&d o&ti&ua&ce of lie&t Relatio&s$i!s a&d Audit E&'a'eme&ts

audit engagement to which he is assigned /@ara "-)

1ngagement partner while forming a conclusion on compliance with independencereuirements that apply to the audit engagement whether done the following:

a) 3btain rele&ant information from the firm and, where applicable, network firms, toidentify and e&aluate circumstances and relationships that create threats toindependence;

b) 1&aluate information on identified breaches, if any, of the firm#s independence

policies and procedures to determine whether they create a threat toindependence for the audit engagement; and

c) 'ake appropriate action to eliminate such threats or reduce them to an acceptable le&el by applying safeguards, or, if considered appropriate, to withdraw from the

audit engagement, where withdrawal is permitted by law or regulation

L'he engagement partner shall promptly report to the firm any inability to resol&e thematter for appropriate action /@ara "9("8)M

Whether the engagement partner is satisfied that appropriate procedures regarding theacceptance and continuance of client relationships and audit engagements ha&e beenfollowed, and shall determine that conclusions reached in this regard are appropriate/@ara "E("F)


Assi'&me&t of E&'a'eme&t 5eams

$f the engagement partner obtains information that would ha&e caused the firm todecline the audit engagement had that information been a&ailable earlier, whether theengagement partner had communicated that information promptly to the firm, so thatthe firm and the engagement partner can take the necessary action /@ara "F)

whether engagement partner satisfied that the engagement team, and any auditor#s



E&'a'eme&t Performa&ce

Directio&# Su!ervisio& a&d Performa&ce

o&sultatio&

Whether the engagement partner has :

g g p g g yexperts who are not part of the engagement team, collecti&ely ha&e the appropriatecompetence and capabilities to:

a) @erform the audit engagement in accordance with professional standards andregulatory and legal reuirements; and

b) 1nable an auditor#s report that is appropriate in the circumstances to be issued/@ara "A.("A)

3n or before the date of the auditor#s report, whether the engagement partner shall,through a re&iew of the audit documentation and discussion with the engagementteam, be satisfied that sufficient appropriate audit e&idence has been obtained tosupport the conclusions reached and for the auditor#s report to be issued /@ara "AE(

".)

a) 'aken responsibility for the engagement team undertaking appropriate consultation on difficult or contentious matters;

b) Ieen satisfied that members of the engagement team ha&e undertakenappropriate consultation during the course of the engagement, both within theengagement team and between the engagement team and others at theappropriate le&el within or outside the f irm;


E&'a'eme&t Hualit4 o&trol Revie

c) Ieen satisfied that the nature and scope of, and conclusions resulting from, suchconsultations are agreed with the party consulted; and

d) Determined that conclusions resulting from such consultations ha&e beenimplemented /@ara "A(")

+or audits of financial statements of listed entities and those other audit engagements



a) Determine that an engagement uality control re&iewer has been appointed;

Whether the engagement uality control re&iewer e&aluated the following:

a) Discussion of significant matters with the engagement partner;

+or audits of financial statements of listed entities, and those other audit engagements,if any, for which the firm has determined that an engagement uality control re&iew isreuired, the engagement partner shall:

b) Discuss significant matters arising during the audit engagement, including thoseidentified during the engagement uality control re&iew, with the engagementuality control re&iewer; and

c) 5ot date the auditor#s report until the completion of the engagement uality control re&iew /@ara "-("9)

b) 0e&iew of the financial statements and the proposed auditor#s report;

c) 0e&iew of selected audit documentation relating to the significant judgments theengagement team made and the conclusions it reached; and

d) 1&aluation of the conclusions reached in formulating the auditor#s report andconsideration of whether the proposed auditor#s report is appropriate /@ara

"<("8, "F("-A)


+or audits of financial statements of listed entities, the engagement uality controlre&iewer, on performing an engagement uality control re&iew, whether also considerthe following:

a) 'he engagement team#s e&aluation of the firm#s independence in relation to theaudit engagement;

b) Whether appropriate consultation has taken place on matters in&ol&ing differences



Differe&ces of *!i&io&

7o&itori&'

Docume&tatio&

Whether following matters ha&e been documented appropriately:

) pp p p g of opinion or other difficult or contentious matters, and the conclusions arising from

the consultations; and

c) Whether audit documentation selected for re&iew reflects the work performed inrelation to the significant judgments made and supports the conclusions reached/@ara "E("-A)

$n case of differences of opinion, whether the engagement team follow the firm#spolicies and procedures for dealing with and resol&ing differences of opinion

Whether the engagement partner considers the results of the firm#s monitoring processas e&idenced in the latest information circulated by the firm and, if applicable, othernetwork firms and whether deficiencies noted in that information may affect the auditengagement /@ara "-("-)

a) $ssues identified with respect to compliance with rele&ant ethical reuirements and how they were resol&ed

b) 2onclusions on compliance with independence reuirements that apply to theaudit engagement, and any rele&ant discussions with the firm that support theseconclusions


c) 2onclusions reached regarding the acceptance and continuance of clientrelationships and audit engagements

d) 'he nature and scope of, and conclusions resulting from, consultationsundertaken during the course of the audit engagement /@ara "-9)

Whether the engagement uality control re&iewer document, for the audit engagementre&iewed, that:



,

a) 'he procedures reuired by the firm#s policies on engagement uality controlre&iew ha&e been performed;

b) 'he engagement uality control re&iew has been completed on or before the date of the auditor#s report; and

c) 'he re&iewer is not aware of any unresol&ed matters that would cause the re&iewer to belie&e that the significant judgments the engagement team made and the

conclusions they reached were not appropriate

icai sa checklist for audit

Documents