Auditing standards in India are the guidelines and principles that are established by the Institute of Chartered Accountants of India (ICAI) for the conduct of audits in the country. These standards provide a framework for the planning, execution, and reporting of audits, and are intended to ensure that audits are conducted in a consistent and professional manner.
The Auditing and Assurance Standards Board (AASB) of ICAI is responsible for issuing and updating the auditing standards in India. The AASB has issued a set of Standards on Auditing (SAs) which are mandatory for all auditors to follow while conducting an audit.
The SAs cover various aspects of the audit process, including the planning and execution of the audit, the assessment of risk, and the use of audit evidence. They also cover the reporting requirements for auditors, including the preparation of the auditor’s report and the presentation of financial statements.
The SAs are based on International Standards on Auditing (ISAs) issued by International Auditing and Assurance Standards Board (IAASB), the SAs are intended to be consistent with ISAs, and are reviewed and updated regularly to keep pace with changes in accounting and auditing practices and to align with international standards.
The Auditing Standards in India are mandatory for all auditors to follow while conducting an audit, non-compliance with the standards can result in disciplinary action by the ICAI. Auditing standards help to ensure that audits are conducted in a consistent and professional manner, and that the financial statements are presented in a true and fair manner.
