Auditing and Assurance Standard 1

Like, GAAP, there are 35 auditing and assurance standards. Ist AAS  ( Basic Principles Governing an Audit) out of there explains basic rules for auditing of any organization. These rules are very simple but it is needed for all type of examination of accounts. This standard classifies these rules in 10 points.

1.    Integrity, objectivity and independence

As per this rule, auditor should do his auditing work independently. He should not be affected due to the any approach. Whether he is auditing of his relative or any other person, he should be impartial all the time. Only then, his examination will be useful.

2.    Confidentiality

Businessman shares many confidential information to the auditor. It is the rule for auditor; he should not share it with other. He may only share if as per any law, it is compulsory.

3.    Skill and Competence

For solving auditing problem, auditor should use his skills and competence. For example when a auditor has checked the balance sheet, he saw building value Rs. 40,00,000 but normal rate of building in this area is just Rs. 4,00,000 to Rs. 5,00,000 in same area. So, he should find normal mistake by using his common sense.

4.    Work Performed by Others

Sometime auditor has to depend on other auditors and employees for completing his audit work. So, it is the duty of auditor, he should appoint them as per their qualification and skill. He should also check the work which is done by other. Because he is responsible for his advice even he does not check all the accounts.

5.    Documentation

Auditor should collect all the documents which is needed for his audit. All document should be classified and keep in a direction that it can easily be found when it is needed.

6.    Planning

Auditor should make the plan of audit. He should complete the audit on the time. For completing audit on the time, he should make the plan when its ledger accounts will audit. When company’s final account’s will audit. When company’s stock will  be checked physically. Auditor will also make the plan about “How to audit ledger accounts and financial statements?”

7.    Audit Evidence

Audit evidence is the base of better audit. These evidence are relating to financial information. If he has to give his opinion on the financial information, he should obtain its all proofs. These proofs will be bills, vouchers and receipts of transactions. On this, he can ensure the validity of transactions.

8.    Accounting System and Internal Control

Auditor should check both accounting system and internal control system before accepting it as it is. If there is the need of improvement in it, he can bring it in the notice.

9.    Audit Conclusions and Reporting

Auditor should conclude in his reports:
  • Financial information follows all statutory requirements.
  •  Financial information are prepared on the basis of accounting policies.
  • Audit report must be in written and a clear opinion on the financial information.

10. Effective Date

All the auditing and assurance standard apply on or after 1st April 1985

Related : CA IPCC






access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar Control Your Spending corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Finance Journal Entries Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Journal Entries eBook Help Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents Partnership pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching Wealth wikipedia working capital youtube
Accounting Education: Auditing and Assurance Standard 1
Auditing and Assurance Standard 1
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock