What are Audit Standards: Auditing StandardsA are sets of criterions against which the quality ofA auditsA are performed and may be judged. Several organisations have developed such sets of rules, which vary by district.Why Audit Standards Needed: The trade and commercialism grew enormously and engagement of public money has increased. The investors invest the concern puting trust on audited histories, so undoubtly the audit should be carried out extreme professional attention and earnestness to continue the religion posed by public in them.
To construct up the trust on audited histories and religion on hearer there should be criterions. All audit procedure should be carried by following those criterions which in bends heighten the dependability up on hearer that nil goes incorrect and all procedure had been followed by the hearer.Auditing criterions besides help the members in proper and optimal discharge of their profession responsibilities.
Auditing criterions besides promote uniformity in pattern as besides comparison.Does India Has Set of Audit Standard In India The Institute of Chartered Accountants of India has duty to publish the audit criterion. It is done by their Audited account and Assurance Standard Board. Broadly following is the procedure for publishing the Audited account StandardsThe Auditing and Assurance Standards Board identifies the countries where scrutinizing criterions necessitate to be formulated and the precedence in respect to their choice.
In the readying of the auditing criterions, the Board is usually, assisted by survey groups consisting of a cross subdivision of members of the Institute.On the footing of the work of the survey groups, an Exposure Draft of the proposed scrutinizing criterion is prepared by the Board and issued for remarks of the members.After taking into the remarks received, the bill of exchange of the proposed scrutinizing criterion is finalised by the Board and submitted to the Council of the Institute.
The Council considers the concluding bill of exchange of the proposed scrutinizing criterion and, if necessary, modifies the same in audience with the Board. The scrutinizing criterion is so issued under the authorization of the Council.While explicating the auditing criterions, the Board besides takes into consideration the applicable Torahs, imposts, uses and concern environment in the stateIndia has about 35 Audit Standard mentioned in Annexure I.The Institute of Chartered Accountants of India is a member of the International Federation of Accountants. Therefore, as a affair of policy, the auditing criterions issued by the ICAI are in harmoniousness with the International Standards on Auditing Till day of the month, the IAASB of the IFAC has issued 30 nine Engagement Standards, consisting one Standard on Quality control ( ISQC ) , 30 two ISAs, two International Standards on Review Engagements ( ISREs ) , two International Standards on Assurance Battles ( ISAEs ) and two International Standards on Related Services ( ISRSs ) .
A List of comparing of Indian Audit Standard ( AAS ) with Internal criterions ( ISQC ) is given in annexure II.Situation in Australia: The Australian Government established the Auditing and Assurance Standard Board ( AUASB ) which is responsible for developing, publishing and keeping Auditing criterions in Australia. The standard issued by the board has legal enforceability under Corporation Act 2001.Australia has issued 41 audit criterions.How Audit criterions issued in AustraliaThe AUASB Board members and staff or other Australian stakeholders may place proficient issues that require consideration and these may be referred to the IAASB.A undertaking proposal will be developed by AUASB for relevant proficient issues and if the undertaking is worthwhile it is placed on the work plan docket.Following research and stakeholder audience the concluding result may be the issue of a dictum, such as a Standard, Guidance Statement, or a Bulletin.
The AUASB makes entries to the International Auditing and Assurance Board ( IAASB ) and besides provides formal entries on paperss issued for remark by the IAASB, to lend to the scene of international auditing and confidence criterions.Comparison with International Standards: Followings are member of the International Federation of AccountantsCAP AustraliaThe Institute of Chartered Accountants in AustraliaNational Institute of Accountants in AustraliaIn Australia The AUASB is responsible for publishing criterions. From April 2006 onwards Australian Standards are issued based on International audit and confidence criterions. This ensures that Australia ‘s auditing criterions are consistent with international criterions.
Does either India or China have an equivalent of the Corporations Act or the ASX Listing Rules, and if so, how does it back up quality scrutinizing in that state? Compare with the state of affairs in Australia.
Corporation /Company act
The Corporation Act 2001 was formed to put out the Torahs covering with concern in Australia focused on Companies. The Corporations Act is the chief statute law modulating companies in Australia. It regulates affairs such as the formation and operation of companies ( in concurrence with a fundamental law that may be adopted by a company ) , responsibilities of officers, coup d’etats and fund elevation( Source hypertext transfer protocol: //en.
wikipedia.org/wiki/Corporations_Act_2001 )Company Act 1956 is formed to modulate the formation, funding, working and weaving up of companies. The Act contains the mechanism sing organizational, fiscal, managerial and all the relevant facets of a company
ASX Listing Rules
ASX ‘s Listing Rules govern the admittance of entities to the official list, citation of securities, suspension of securities from +quotation and remotion of entities from the official list. They besides govern revelation and some facets of a listed entity ‘s behavior. Conformity with the Listing Rules is a demand for admittance to the official list. It is besides a demand under the contract that an entity enters into on being admitted.Awww.
htmThe Securities Transactions in India at present are chiefly governed by two Acts.A AA A A A A 1. The Securities Contracts ( Regulation ) Act, 1956, andA A A A A 2. The Securities & A ; Exchange Board of India Act, 1992.The Securities Contracts ( Regulation ) Act, 1956 is an Act to forestall unwanted minutess in securities by modulating the concern of covering therein, by supplying for certain other affairs connected therewithSecurities & A ; Exchange Board of India ( SEBI ) 1992 was formed to Protect the involvement of investor in securities Promote the development of the securities Market, To modulate the securities Market and for affair concerned therewith or incidental at that place to.
hypertext transfer protocol: //www.sebi.gov.in
Quality of Auditing
As per corporation Act hearer has to organize sentiment that fiscal studies is accordance with the act and present true and fare position.Further the Act cover the elaborate commissariats over -Audited account to be conducted in conformity with auditing criterions AAudit working documents to be retained for 7 old ages AAuditor ‘s independency declaration AAuditor ‘s study on one-year fiscal study AAuditor ‘s study on half-year fiscal study AAuditor ‘s power to obtain information AReporting to ASIC AHelping hearer AParticular commissariats on audit of unsecured bond issuers and suretieshypertext transfer protocol: //www.austlii.
edu.au/au/legis/cth/consol_act/ca2001172/in Australia as per ASX listing regulations company ‘s has to lodge Audited Financial Statement and one-year studies.Therefore all demands as per corporation act, listing regulations and other act and ordinances provide the guidelines and signifiers harmonizing which audit should be carried and assisting the hearer to show true and fare position over the fiscal statement of companies.The company act 1956 and regulations made there under provide elaborate commissariats over books of histories and other statutory registry that are to maintained. The intent of audit is that histories are showing true and fare position.Fur this act and regulations made there under provide the commissariats for assignment of hearer, their qualification/disqualification, their retirement, surrenders, rights etc.The Department of Company Affairs notified the Companies ( Auditor ‘s Report ) Order, 2003 which provide the inside informations on which point audit of the company is to execute.Securities Contract ( Regulation ) regulations 1957 requires that every company which is using for listing or is listed has to supply audited fiscal statement.
Further The SEBI ( Disclosure and Investor Protection ) Guidelines 2000 requires audited fiscal statement. There are broad scope of subject which the fiscal statement has to cover.Therefore these ordinances besides improve the audit quality in India.
Does either India or China have an equivalent of Australia ‘s APES110 Code of Ethics for Professional Accountants? If so, how is it applied and enforced? Compare with the state of affairs in Australia.
The “ Code of Conduct ” is basically a set of professional ethical criterions modulating the relationship of Chartered Accountants with their clients, employers, employees, fellow members of the group and the public by and large.The care of ethical criterions is the corporate concern of the Institute every bit good as all members of the profession. The ideal state of affairs, of class, would be that the care of ethical criterions at single member degree is so axiomatic that its farther reference need non be made. However, the human nature being what it is, a adult male may frequently put his personal addition above service. Therefore, it is necessary to maintain on reenforcing the thought of maintaining up and detecting the highest ethical criterions repeatedly.
Code of Ethical motives for
CPA Australia members must follow with APES 110A Code of moralss for professional comptrollers. Section 290 of the codification trades with issues associating to professional independency for confidence battles, where an bing client of a member engages them to supply confidence services and where the member ‘s ability to supply these services could potentially be compromised by bing battles.The criterion is based on theA Code of Ethics for Professional AccountantsA issued by the International Federation of Accountantshypertext transfer protocol: //www.
htmlThe Chartered Accountants Act, 1949 and the Schedules to the Act set out the acceptable signifiers of behavior of the members of the profession. The Behavior of the Chartered Accountants is judged under commissariats contained in the Chartered Accountants Act, 1949 and the Schedules thereto ; puting out different signifiers of behavior which would represent professional or other misconduct under the Act. The Chartered Accountants Act is framed for the ordinance of the profession of Chartered Accountants.hypertext transfer protocol: //icai.org/post.html? post_id=735
How it applies and enforced
APESB criterions contain the professional regulations on moralss and demands associating to the behavior and public presentation of professional services across assorted types of battles. They are compulsory for all members of the professional accounting organic structures.If any members violate so there are some penal commissariats.
In India the codification of moralss are compulsory for the Members of the ICAI.If any members violate any commissariats a penal action is taken against that Member.The ICAI has set up the disciplinary commission to position and take stairss against professional misconduct.
Finally, compare the overall quality of scrutinizing in either India or China with the experience in Australia. Are the experiences similar? Different? Where is Australia executing better, or worse, than either India or China
Auditing criterions and patterns are the anchor on which reported fiscal public presentation is based.
The information and footing of reported fiscal statements are scrutinizing criterions and patterns as applied
Whether state has Auditing StandardsYesYesWhether Country has Accounting StandardsYesYesProfessional Ethical motives to Ensure Independent, true and fare auditsYesYesRegulative Requirements like corporation act or other act?YesYesWhether Countries has commanding Body?Yeshas assorted board likeAustralian Accounting Standards Board ( AASB ) , CPA Australia,Auditing and Assurance Standards Board ( AUASB )Accounting Professional & A ; Ethical Standard Board ( EPESB ) ,Yes1. Institute for Financial Accounting & A ; Audit i.e.
The Institute of Chartered Accountants of India ( ICAI ) which entirely is responsible for Accounting and Auditing Standards, keeping codification of behaviors among the Members.2. The Indian Institute of Cost and Work Accountant ( ICWA ) for cost audit.