I know audit has always been the most dreadful while preparing for CA final exams. What I am trying to do through this post is to brew SA 200 in simple words.
SA 200- Overall Objectives of the Independent Auditor and the conduct of an audit in accordance with Standards on Auditing
As the name suggests, this standard basically sets out the objectives and responsibilities of an independent auditor while carrying out audit of financial statements as per SAs. This is a base standard that applies to every audit of financial statements.
It establishes the obligation of an auditor to comply with SAs while auditing the historical financial information of a client.
Auditor is required to obtain reasonable assurance with respect to financial statements being free from material misstatements due to fraud or error.
Auditor must exercise professional skepticism and professional judgement while performing his duties. It means that auditor should always be alert to circumstances or evidence that indicate possibility of misstatement.
The purpose of audit is to enhance the confidence of users in financial statements. Auditor needs to make sure that his opinion does justice to the same. Auditor needs to express an opinion as to financial statements have been prepared as per applicable financial reporting framework.
In order to provide reasonable opinion, the auditor shall obtain sufficient and appropriate audit evidence.
Alright, by now you have gained brief idea about this SA. I will be posting further articles in this series called- Briefing SAs.
Happy Reading !