Conducting Statutory Financial Audit in India using Audit Evidences: A Review of Select Standards on Auditing (SAs)

Abstract

The study initially deduces that quality of financial reporting depends upon quality of statutory financial audit. Adequacy and reliability of audit evidences may influence quality of audit. While collecting audit evidences, the auditor has to depend upon a few internal and external members of the company, such as internal auditors, auditor’s expert, external third parties (e.g. Banks, Debtors, Creditors, etc.). Statutory auditors’ responsibilities with respect to collection of sufficient and appropriate evidences from these parties are governed by their respective standards. The current study conceptually reviews statutory auditors’ responsibilities with respect to ‘using the work of internal auditors’, ‘external confirmations’, and ‘using the work of auditor’s expert’ in light of their governing auditing standards.

Keywords: Internal Auditor, External Confirmation, Auditor’s Expert, ICAI, SAs.