The Institute of Chartered Accountants of India (ICAI), through its Auditing and Assurance Standards Board (AASB), has released an Exposure Draft of Standards on Auditing (SAs) for Limited Liability Partnerships (LLPs). This marks a significant milestone as it is the first time auditing standards will be notified under the LLP Act, 2008.
Under Section 34A of the LLP Act, the Central Government- after consultation with the National Financial Reporting Authority (NFRA)-has empowered ICAI to recommend auditing standards for LLPs. Responding to this mandate, ICAI has tailored a dedicated set of auditing standards specifically for LLPs by adapting the existing standards used for companies, while making context-specific amendments.
Key Highlights of the Exposure Draft
- Terminology and contextual changes: The standards have been revised to reflect LLP-specific terminology and operational structures.
- Illustrative formats updated: Formats of the Independent Auditor's Report and Engagement Letters have been customized for LLPs.
- Conforming amendments: Incorporation of updates from recently finalized standards such as SQM 1, SQM 2, SA 220 (Revised), SA 250 (Revised), SA 315 (Revised), and SA 540 (Revised). These are not open for comment.
Public Participation Invited
The ICAI is encouraging professionals, stakeholders, and the public to review the proposed changes and submit comments particularly on the LLP-specific modifications by May 1, 2025. Feedback can be submitted online, via email, or by post.
Official copy of the notification has been attached
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