According to the assessment of accounting and auditing practices conducted by the World Bank in 2004, the Institute of Chartered Accountants of India (ICAI) uses the International Standards on Auditing (ISAs) extensively in developing the national Auditing and Assurance Standards (AASs). The ICAI duly considers ISAs in the standard setting process and may depart from these standards if justified, keeping in mind the local environment and practices. However, there is a gap between AASs and ISAs which is significant in its material effect on assurance engagements. The modifications made to ISAs when adapting to Indian AASs appear to allow a less flexible audit approach, perhaps in order to reduce the extent of auditor's judgment required to properly apply sophisticated auditing standards and procedures. Moreover, as indicated in the assessment prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, India has based AASs on ISAs effective prior to December 15, 2004. Subsequent revisions to ISAs and new ISAs have not been incorporated into Indian requirements. During the period of 2005-2006, the Auditing and Assurance Standards Board (AASB) of the ICAI carried out a project of comparison of AASs vis-à-vis corresponding international standards and suggested the necessary revisions of AASs to bring them in line with the corresponding ISAs.

General Overview

According to the assessment of accounting and auditing practices conducted by the World Bank in 2004, the Institute of Chartered Accountants of India (ICAI) uses the International Standards on Auditing (ISAs) extensively in developing the national Auditing and Assurance Standards (AASs). The ICAI duly considers ISAs in the standard setting process and may depart from these standards if justified, keeping in mind the local environment and practices. However, there is a gap between AASs and ISAs which is significant in its material affect on assurance engagements. The modifications made to ISAs when adapting to Indian AASs appear to allow a less flexible audit approach, perhaps in order to reduce the extent of auditor's judgment required to properly apply sophisticated auditing standards and procedures. Moreover, as indicated in the assessment prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, India has based AASs on ISAs effective prior to December 15, 2004. Subsequent revisions to ISAs and new ISAs have not been incorporated into Indian requirements. During the period of 2005-2006, the Auditing and Assurance Standards Board (AASB) of the ICAI carried out a project of comparison of AASs vis-à-vis corresponding international standards and suggested the necessary revisions of AASs to bring them in line with the corresponding ISAs. (WB 2004, pp. 12, 18; ICASL 2006, pp.8, 9; ICAI 2006b, p. 13)

The World Bank concluded that the quality of audit practice differs significantly among audit firms. This is mainly because of inadequacy of quality control arrangements in most of the smaller audit firms. Discussions with professionals representing a cross section of audit firms conducted during the ROSC assessment revealed that majority of auditors use a traditional vouching-based audit approach focusing on transactions, as opposed to the modern risk-based approach focusing on critical assertions. In addition, most auditors focus their audit effort on financial reporting and compliance with provisions of statutes. Improvements in audit quality can be achieved by the development and dissemination of practical guidelines on the implementation of auditing standards. (WB 2004, p. 19)

The Companies Act of 1956 provides the basic requirements relating to financial reporting of all companies incorporated in India. The Companies Act requires an audit of all companies by a member-in-practice certified by the ICAI. The Companies Act has been amended on numerous occasions. The 1999 amendment requires the auditor to specifically state in the audit report whether the financial statements comply with the Indian Accounting Standards (IASs). The Central Government enforces the Companies Act through the Ministry of Company Affairs (MCA), formerly the Department of Company Affairs (DCA), the Company Law Board, the Regional Directors, and the Registrars of Companies (RoC). The MCA has the mandate to monitor general purpose financial reporting, which is exercised primarily through the statutory audit. (WB 2004, p. 2)

Listed companies in India are required to comply with the Securities and Exchange Board of India (SEBI) requirements as outlined in the SEBI Act and the Securities Contracts (Regulation) Act. To protect investor interests, SEBI-issued listing requirements specify disclosures applicable to listed companies in addition to other applicable auditing and accounting requirements. The SEBI, through Listing Agreement, requires compliance with the ICAI-issued accounting standards. According to the World Bank, the SEBI does not proactively monitor compliance with financial reporting requirements, which is unlike many other international securities market regulators. The SEBI only looks at financial statements contained in the prospectus at the time of a public offering or in the case of a complaint against a listed company. The SEBI refers cases of noncompliance that come to its attention to the Stock Exchange, the ICAI, and the MCA, as applicable. (WB 2004, pp. 5, 13)

The Banking Regulation Act of 1949 empowers the Reserve Bank of India (RBI) to regulate financial reporting of the financial sector, including banks and financial institutions. Banking companies are also required to comply with requirements of the Companies Act provided they are consistent with the Banking Regulation Act. The RBI relies on banks' statutory auditors to ensure compliance with the general purpose financial reporting requirements. The private sector and foreign banks are required to receive prior approval from the RBI before appointing their auditors. The public sector banks appoint their statutory auditors (principal auditors and branch auditors) on the basis of recommendations of RBI (except for State Bank of India where the principal auditors are appointed directly by the RBI as per State Bank of India Act); this recommendation is made from the list of RBI-empanelled auditors. A statutory principal auditor relies on branch auditors' reports for issuing audit opinion on the bank's annual financial statements. The list of RBI-empanelled auditors is compiled from a self-disclosure form completed annually by interested auditors. Bank statutory auditor appointment, re-appointment, or removal requires RBI approval. All state-owned banks must have a minimum of four (joint) statutory auditors. Bank auditors must be replaced at least once in four years. No audit firm is allowed to audit more than 4 private-sector banks and 1 state-owned bank during any single year. (WB 2004, pp. 5-6)

The Insurance Regulatory and Development Authority (IRDA) regulates the financial reporting practices of insurance companies under the IRDA Act. Insurance companies and their auditors are required to comply with the requirements of the IRDA Regulations (Preparation of Financial Statements and Auditor's Report of the Insurance Companies) in preparing and presenting their financial statements and the format and content of the audit report. All insurance companies appoint two firms of auditors for a period of four years. The firms are selected from the list of approved auditors maintained by the IRDA. Appointment of joint auditors and audit firm rotation are mandatory for insurance companies. The IRDA has the authority to impose sanctions for noncompliance. However, in practice, this power has rarely been exercised. (WB 2004, p. 7)

The Institute of Chartered Accountants of India (ICAI) was established in 1949 under the Chartered Accountants Act (1949). The ICAI regulates the accountancy profession and, in line with India's imperial history, was initially modeled on the Institute of Chartered Accountants in England and Wales (ICAEW). Other professional bodies include the Institute of Cost and Works Accountants of India (ICWAI), and the Institute of Company Secretaries of India (ICSI). The Auditing and Assurance Standards Board (AASB) of the ICAI is responsible for assisting the ICAI in setting standards. (WB 2004, pp. 8, 12)

The AASB was constituted as a technical organ of the ICAI in September 1982 in the form of a Non-Standing Committee named Auditing Practices Committee (APC). Following the international trend, the Council of the ICAI converted APC into AASB in the year 2002. The conversion of APC into AASB introduced participation of representatives from regulators and industries on the Board to ensure greater transparency, efficiency and safeguarding public interest. The AASB invites nominees (one person each) from the following institutions: (1) the RBI; (2) Indian Institute of Management (on rotation basis); (3) Confederation of Indian Industries, Associated Chambers of Commerce & Industry and Federation of Indian Chambers of Commerce & Industry (on rotation basis); and (4) the SEBI. As of 2006, the AASB issued thirty-four AASs, three Statements, three General Clarifications and thirty seven Guidance Notes, including four industry specific Guidance Notes, to its credit. (ICAI 2006, pp. 1, 12)

The Institute of Chartered Accountants of India and the Institute of Cost and Works Accountants of India is a member of the International Federation of Accountants (IFAC). (IFAC website)

The Principles

ISA 200 Objective and General Principles Governing an Audit of Financial Statements (effective 2006)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 1, Basic Principles Governing an Audit - has been effective since April 1, 1985. The corresponding standard - AAS 2, Objective and Scope of an Audit of Financial Statements - has been effective since April 1, 1985. (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 200 effective December 15, 2005 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 1; ICASL 2006, p. 4)

ISA 210 Terms of Audit Engagements (effective 2006)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 26 Terms of Audit Engagements has been effective since April 1, 2003. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 210 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 1; ICASL 2006, p. 4)

ISA 220R Quality Control for Audits of Historical Financial Information (effective 2005)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 17 Quality Control for Audit Work has been effective since April 1, 1999. The requirements of AAS 17 have gaps that need to be aligned with corresponding International Standard on Auditing (ISA). (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 220 effective June 15, 2005 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 1; ICASL 2006, p. 4)

ISA 230R Documentation (effective 2006)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 3, Documentation - has been effective since July 1, 1985. According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 230 Revised effective June 15, 2006 is under review in India. (WB 2004, p. 29; ICASL 2006, p. 4)

Exposure Draft (revised) of AAS 3 Audit Documentation (ED AAS 3) was issued by the Council of the Institute of Chartered Accountants of India and, as of February 2007, was still outstanding. As indicated in the ED, the auditing standards established in ED AAS 3 are generally consistent in all material respects with those set out in the exposure draft of the International Standard on Auditing (ISA) 230 on Audit Documentation. (ED AAS 3; AASB 2007, p. 1)

ISA 240 The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 4 (Revised) The Auditor's Responsibility to Consider Fraud and Error in an Audit of Financial Statements - was issued in June 1987 and was revised in January 2003. The revised standard has been effective since April 1, 2003. (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 240 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 1; ICASL 2006, p. 4)

ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 21 Consideration of Laws and Regulations in an Audit of Financial Statements - has been effective since April 1, 2001. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 250 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 2; ICASL 2006, p. 4)

ISA 260 Communications of Audit Matters With Those Charged With Governance (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 27 Communications of Audit Matters With Those Charged With Governance has been effective since April 1, 2003. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 260 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 2; ICASL 2006, p. 4)

ISA 300 Planning an Audit of Financial Statements (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 8 Audit Planning has been effective since April 1, 1989. The requirements of AAS 8 have gaps that need to be aligned with corresponding International Standard on Auditing (ISA). (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 300 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 2; ICASL 2006, p. 4)

ISA 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 20 Knowledge of the Business - has been effective since April 1, 2000. The standard was based on International Standard on Auditing (ISA) 310 later withdrawn by the International Auditing and Assurance Standards Board (IAASB). The Auditing and Assurance Standards Board of India (AASB) has undertaken a project to prepare AAS corresponding to the ISA 315. As of February 2007, the Exposure Draft of the proposed AAS was under reconsideration by the AASB. (WB 2004, p. 30; AASB 2007, p. 2)

ISA 320 Audit Materiality (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 13 Audit Materiality has been effective since April 1, 1996. (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 320 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 2; ICASL 2006, p. 4)

ISA 330 The Auditor’s Procedures in Response to Assessed Risks (effective 2006)

ID

According to the Auditing and Assurance Standards Board (AASB) of the Institute of Chartered Accountants of India (ICAI), as of February 2007, the Exposure Draft of the standard corresponding to International Standard on Auditing (ISA) 330 was under consideration by the AASB. (AASB 2007, p. 2)

ISA 402 Audit Considerations Relating to Entities Using Service Organizations (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 24, Audit Considerations Relating to Entities Using Service Organizations has been effective since April 1, 2003. The requirements of International Standard on Auditing (ISA) 402 were modified in AAS 24. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 402 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 2; ICASL 2006, p. 4)

ISA 500 Audit Evidence (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 5 Audit Evidence - has been effective since January 1, 1989. The Auditing and Assurance Standards Board (IASB) has undertaken a project to prepare AAS corresponding to the International Standard on Auditing (ISA) 500 (revised). (WB 2004, p. 29; ICAI 2004, p. 7)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 500 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 2; ICASL 2006, p. 4)

ISA 501 Audit Evidence - Additional Considerations for Specific Items (effective 2004)

ID

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 501 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 2; ICASL 2006, p. 4)

ISA 505 External Confirmations (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 30 External Confirmations - has been effective since April 1, 2003. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 505 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 2; ICASL 2006, p. 4)

ISA 510 Initial Engagements — Opening Balances (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 22, Initial Engagements--Opening Balances has been effective since July 1, 2001. The requirements of International Standard on Auditing (ISA) 510 were modified in AAS 22, Initial Engagements - Opening Balances. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 510 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 2; ICASL 2006, p. 4)

ISA 520 Analytical Procedures (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 14 Analytical Procedures - has been effective since April 1, 1997. (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 520 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 4)

ISA 530 Audit Sampling and Other Selective Testing Procedures (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 15 Audit Sampling - has been effective since April 1, 1998. The standard on Audit Sampling and Other Selective Testing Procedures, both as written and as practiced in India, significantly differs from International Standard on Auditing (ISA). Few auditors use sampling techniques prescribed by ISA. (WB 2004, pp. 18, 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 530 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 4)

ISA 540 Audit of Accounting Estimates (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 18 Audit of Accounting Estimates - has been effective since April 1, 2000. (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 540 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 5)

ISA 545 Auditing Fair Value Measurements and Disclosures (effective 2004)

ID

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 545 effective December 15, 2004 has been kept in abeyance till the time an Accounting Standard on Fair Value Measurement and Disclosures is issued by the Institute of Chartered Accountants of India (ICAI). (ICASL 2006, p. 5)

ISA 550 Related Parties (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 23 Related Parties - has been effective since April 1, 2001. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 550 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 5)

ISA 560 Subsequent Events (effective 2006)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 19 Subsequent Events - has been effective since April 1, 2000. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 560 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 5)

ISA 570 Going Concern (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, the corresponding standard - Auditing and Assurance Standard (AAS) 16 Going Concern - has been effective since April 1, 1999. (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 570 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 5)

ISA 580 Management Representations (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 11 Representations by Management has been effective since April 1, 1995. The requirements of AAS 11 have gaps that need to be aligned with corresponding International Standard on Auditing (ISA). (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 580 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 5)

ISA 600 Using the Work of Another Auditor (effective)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Revised Auditing and Assurance Standard (AAS) 10, Using the Work of Another Auditor was issued in September 2002. The requirements of International Standard on Auditing (ISA) 600 were modified in AAS 22, Using the Work of Another Auditor. (WB 2004, p. 30)

ISA 610 Considering the Work of Internal Auditing (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 7 Relying Upon the Work of an Internal Auditor has been effective since April 1, 1989. (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 610 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 5)

ISA 620 Using the Work of an Expert (effective 2005)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 9 Using the Work of an Expert has been effective since April 1, 1991. (WB 2004, p. 29)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 620 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 5)

ISA 700 The Auditor’s Report on Financial Statements (effective 2006)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 28 The Auditor's Report on Financial Statements has been effective since April 1, 2003. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 700 Revised effective December 31, 2006 is under review in India. As of 2006, India adopted ISA 700 The Auditor's Report on Financial Statements effective September 30, 2002. (ICASL 2006, pp. 5, 11)

ISA 701 Modifications to the Independent Auditor's Report (effective 2006)

ID

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 701 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 6; ICASL 2006, p. 11)

ISA 710 Comparatives (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, Auditing and Assurance Standard (AAS) 25 Comparatives has been effective since April 1, 2003. (WB 2004, p. 30)

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 710 effective December 15, 2004 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 3; ICASL 2006, p. 5)

ISA 720 Other Information in Documents Containing Audited Financial Statements (effective 2004)

ID

As stated in the assessment of accounting and auditing practices in India conducted by the World Bank in 2004, India has not issued equivalent Auditing and Assurance Standard (AAS) to International Standard on Auditing (ISA) 720, Other Information in Documents Containing Audited Financial Statements as there is no such requirement under the Companies Act of 1956. (WB 2004, p. 18; ICASL 2006, p. 5)

According to the Auditing and Assurance Standards Board (AASB) of the Institute of Chartered Accountants of India (ICAI), as of February 2007, ISA 720 was under consideration by the AASB; however, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 6)

ISA 800 The Auditor’s Report on Special Purpose Audit Engagements (effective 2006)

ID

According to a comparison prepared by the Centre of Excellence for Standards & Quality of the Institute of Chartered Accountants of Sri Lanka (ICASL) in 2006, adoption of ISA 800 is under review in India. However, as of February 2007, no exposure draft of the proposed standard had been issued. (AASB 2007, p. 6; ICASL 2006, p. 5)