Important Announcement on revised Effective Date/ Applicability of three
Standards on Auditing, namely –
- SA 700 (Revised), “Forming an Opinion and Reporting on Financial
Statements”;
- SA 705, “Modifications to the Opinion in the Independent Auditor’s
Report”;
- SA 706, “Emphasis of Matter Paragraphs and Other Matter Paragraphs
in the Independent Auditor’s Report”
During the last few weeks, the President and Vice-President, during their interaction with
members especially statutory central and branch auditors of banks, business community
and Council Members, have been urged that concerted efforts be made by the Institute by
way of regular CPE and other programmes to familiarise the practicing members with the
requirements of the following three Standards on Auditing namely:
- SA 700 (Revised), “Forming an Opinion and Reporting on Financial Statements”;
- SA 705, “Modifications to the Opinion in the Independent Auditor’s Report”;
- SA 706, “Emphasis of Matter Paragraphs and Other Matter Paragraphs in the
Independent Auditor’s Report”
which were issued in 2010 to be effective/applicable for audits of financial statements for
the periods beginning on or after 1.4.2011 and only after ensuring adequate education,
publicity and familiarization, the said standards, be made mandatory.
The above concerns were shared by the President and Vice-President among other Council
colleagues and thereafter based on the view emerged, the President directed the office to
circulate a proposal, under Regulation 165, among Council Members for taking a decision
on postponement by one year of the applicability of aforementioned Standards on Auditing.
Accordingly, a proposal for postponement by one year of the effective date/applicability of
the above mentioned three Standards on Auditing was circulated among Council Members
for taking a decision in the matter, in accordance with the applicable provisions of
Regulation 165 of the Chartered Accountants Regulations 1988. The decision so taken by
the Council is as follows :
“The Council, in partial modification of the decision taken by it at its 291
st
meeting held in December, 2009, decided that the effective date/applicability of
the following Standards on Auditing –
a) SA 700 (Revised), “Forming an Opinion and Reporting on Financial
Statements”;
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