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SA 210: Agreeing the Terms of Audit Engagements
This S.A deals with the Auditor’s Responsibility in Agreeing with the Terms of Audit Engagement with Management and See Whether any of the Preconditions of the Management Restricts his Scope.
The Objective of the Auditor is to Accept or continue an Audit Engagement Only when the basis upon which it is to be Performed has been Agreed, through:
i) Establishing whether the Preconditions for an Audit are Present; and
ii) Confirming that there is a Common Understanding between the Auditor and Management and, where Appropriate, those Charged with Governance of the terms of the Audit Engagement.
In Order to establish whether the Preconditions for an Audit are Present, the Auditor shall:
• Determine whether the Financial Reporting Framework to be Applied in the Preparation of the FS is Acceptable; and
• Obtain the Agreement of Management that it Acknowledges and Understands its Responsibility:
a) For the Preparation of the FS in Accordance with the Applicable Financial Reporting Framework, including where Relevant their Fair Presentation;
b) For such Internal Control as Management Determines is Necessary to Enable the Preparation of FS that are Free from Material Misstatement, whether Due to Fraud or Error;
Acceptance of a Change in the Terms of the Audit Engagement
SA 250 - Consideration of Laws & Regulations in an Audit of Financial Statements
SA 260 - Communication with Those Charged with Governance
SA 299 - Responsibility of Joint Auditors
Deals with the Auditor’s responsibility to conduct audit jointly where two or more practicing firms are appointed to conduct audit of a single entity
In respect of audit work divided among the JAs each JA is responsible only for the work allocated to him, whether or not he has prepared a separate report
JAs are jointly and severally responsible for:
SA 300(Revised) Planning an Audit of Financial Statements
CA. Anurag Singal secured All India Ranks 25 and 22 in CA inter and Final. He has authored the book “Auditing Mantras’ for CA IPCC. He can be mailed at email@example.com