Amendments for law and audit for may 2017 exam

Paper 3: Advanced Auditing and Professional Ethics

• Statements and Standards

1. Statement on Reporting under Section 227(1A) of the Companies Act, 1956

(Section 143(1) of the Companies Act, 2013).

2. Framework for Assurance Engagements.

• Engagements and Quality Control Standards on Auditing

S.No         SA    Title of Standard on Auditing

1 SQC 1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements

2 SA 200 Overall Objectives of the Independent Auditor and the Conduct of

an Audit in Accordance with Standards on Auditing

3 SA 210 Agreeing the Terms of Audit Engagements

4 SA 220 Quality Control for Audit of Financial Statements

5 SA 230 Audit Documentation

6 SA 240 The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements

7 SA 250 Consideration of Laws and Regulations in An Audit of Financial Statements

8 SA 260 Communication with Those Charged with Governance

9 SA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management

10 SA 299 Responsibility of Joint Auditors

11 SA 300 Planning an Audit of Financial Statements

12 SA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment

13 SA 320 Materiality in Planning and Performing an Audit

14 SA 330 The Auditor’s Responses to Assessed Risks

15 SA 402 Audit Considerations Relating to an Entity Using a Service Organization

16 SA 450 Evaluation of Misstatements Identified during the Audits

17 SA 500 Audit Evidence

18 SA 501 Audit Evidence - Specific Considerations for Selected Items

19 SA 505 External Confirmations

20 SA 510 Initial Audit Engagements-Opening Balances

21 SA 520 Analytical Procedures

22 SA 530 Audit Sampling

23 SA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures

24 SA 550 Related Parties

25 SA 560 Subsequent Events

26 SA 570 Going Concern

27 SA 580 Written Representations

28 SA 600 Using the Work of Another Auditor

29 SA 610 (Revised) Using the Work of Internal Auditors

30 SA 620 Using the Work of an Auditor’s Expert

31 SA 700 Forming an Opinion and Reporting on Financial Statements

32 SA 705 Modifications to the Opinion in the Independent Auditor’s Report

33 SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report

34 SA 710 Comparative Information – Corresponding Figures and

Comparative Financial Statements

35 SA 720 The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements

36 SA 800 Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework

37 SA 805 Special Considerations-Audits of Single Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement

38 SA 810 Engagements to Report on Summary Financial Statements

39 SRE 2400 (Revised) Engagements to Review Historical Financial Statements

40 SRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity

41 SAE 3400 The Examination of Prospective Financial Information

42 SAE 3402 Assurance Reports on Controls At a Service Organisation

43 SAE 3420 (New) Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus

44 SRS 4400 Engagements to Perform Agreed Upon Procedures Regarding Financial Information

45 SRS 4410 (Revised) Compilations Engagements

• Guidance Notes and other publications

1. Code of Ethics

2. Guidance Note on Independence of Auditors.

3. Guidance Note on Audit under Section 44AB of the Income-tax Act.

4. Guidance Note on Audit of Inventories.

5. Guidance Note on Audit of Debtors, Loans and Advances.

6. Guidance Note on Audit of Investments.

7. Guidance Note on Audit of Cash and Bank Balances.

8. Guidance Note on Audit of Liabilities.

9. Guidance Note on Audit of Revenue.

10. Guidance Note on Audit of Expenses.

11. Guidance Note on Computer Assisted Audit Techniques (CAATs).

12. Guidance Note on Audit of Payment of Dividend.

13. Guidance Note on Audit of Capital and Reserves.

14. Guidance Note on Audit of Banks.

15. Guidance Note on Audit of Internal Financial Controls over Financial Reporting.

16. Guidance Note on Reporting under section 143(3)(f) and (h) of the Companies Act, 2013.

17. Guidance Note on Reporting on Fraud under section 143(12) of the Companies Act, 2013.

18. Guidance Note on the Companies (Auditor’s Report) Order, 2016.

IV Applicability of the Companies Act, 2013:

(i) The relevant notified Sections of the Companies Act, 2013 and other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authorities, cut-off date will be 31st October, 2016.

(ii) SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Companies (Auditor’s Report) Order, 2016 are applicable for May, 2017 Examination.

Paper 4 : Corporate and Allied Laws

Applicability of the following Amendments/Circulars/Notifications:

(I) The Companies Act, 2013 The relevant sections of the Companies Act, 2013, along with significant Rules/ Notifications/ Circulars/ Clarification/ Orders issued by the Ministry of Corporate Affairs upto 31st October 2016.

For updates, see https://www.mca.gov.in/

(II) SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2009 Vide Notification No. SEBI/LAD-NRO/GN/2016-17/003 dated 25th May, 2016, SEBI hereby further amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 through

the enforcement of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations,2016 from the date of their publication in the Official Gazette.

Amendments have been made in relevant Regulations 2, 4,73 & 84 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and these shall be applicable to issuers filing offer documents with the Registrar of companies on or after the date of commencement of these regulations.

For amendment, refer the following Link

https://www.sebi.gov.in/cms/sebi_data/attachdocs/1464245320010.pdf

(III) The Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016 Ministry of Law and Justice on 16th August, 2016 has published for general information, the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016.

It is an Act further to amend four laws: (i) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI), (ii) Recovery of Debts due to Banks and Financial Institutions Act, 1993 (RDDBFI), (iii) Indian Stamp Act, 1899 and (iv) Depositories Act, 1996, and for matters connected therewith or incidental thereto.

Chapter II, of this amendment Act deals with the amendments to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, whereby, it is an act to regulate securitisation and reconstruction of financial assets and enforcement of security interest and to provide for a central database of security interests created on property rights, and for matters connected therewith or incidental thereto.

For amendment, refer the following Link https://financialservices.gov.in/Banking/LAWS.pdf

Non-Applicability of the following Amendments/Circulars/Notifications / chapters of the Study material:

Chapter 9 of the study material (January 2016 edition) covering provisions relating to Revival and Rehabilitation of Sick-Industrial Companies.