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    SA 600 Revised Public Consultation

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    srinath290102

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    SA 600 Revised Public Consultation

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    srinath290102
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    SA-600-Revised-Public-Consultation

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    9 views8 pages

    SA 600 Revised Public Consultation

    Uploaded by

    srinath290102

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    SA 600 (Revised):

    Public Consultation
    NFRA invites comments on proposed revisions to SA 600, aligning
    with ISA 600 (Revised), to improve audit quality for group financial
    statements.

    by Srinath Reddy
    Purpose of Public Consultation
    1 2 3

    Background International Convergence Public Interest


    NFRA seeks public input on The revisions aim to converge SA The revisions are crucial for
    proposed changes to SA 600, 600 with ISA 600, issued by the safeguarding public interest and
    aligning with international International Auditing and investor protection in India's
    standards. Assurance Standards Board (IAASB). growing financial markets.
    NFRA's Observations from
    Enforcement Cases
    1 Audit Deficiencies 2 Lack of
    Understanding
    NFRA has observed
    significant deficiencies in Audit firms and auditors
    group audits, particularly often lack understanding
    in Public Interest Entities of their responsibilities in
    (PIEs). law and proper
    application of standards.

    3 Detrimental Impact
    These deficiencies result in negligence and lack of due
    diligence, harming stakeholders' interests.
    NFRA's Objective and Obligations
    Statutory Functions Protecting Public Interest Growing Complexity

    NFRA is mandated to make NFRA aims to establish high-quality The increasing complexity of group
    recommendations on accounting standards of accounting and structures necessitates robust
    and auditing standards for auditing to protect investors and standards to safeguard public
    companies. creditors. interest.
    Judicial and Parliamentary
    Pronouncements
    Hon'ble Supreme Court Emphasized the need for
    convergence with global
    standards to address
    challenges of globalization.

    Hon'ble Delhi High Court Stressed the importance of


    global best practices for
    multinational accounting
    firms operating in India.

    Parliamentary Standing Recognized the need for


    Committees modernization of corporate
    regulation aligned with
    global standards.
    Key Aspects of SA 600 at
    Variance with ISA 600

    Principal Auditor's Responsibility


    SA 600 provides less clarity on the principal auditor's responsibility compared to ISA 600.

    Component Auditor's Competence


    SA 600 focuses on the component auditor being a CA, while ISA 600 emphasizes
    broader competence criteria.

    Sharing of Work Papers


    SA 600 does not permit review of work papers by the principal auditor, unlike ISA 600.
    Basis for Revision of ISA 600
    Public Interest Issues International Adoption Need for Alignment
    The IAASB revised ISA 600 to Major jurisdictions worldwide India's aspiration to become a
    address public interest concerns have adopted or converged with leading economy necessitates a
    related to audit quality and ISA 600 (Revised), including the financial reporting framework
    investor protection. UK, EU, and Australia. aligned with global standards.
    Public Consultation and
    Request for Comments
    Key Issues
    NFRA seeks comments on the proposed revisions to SA 600,
    addressing key issues related to audit quality and
    convergence with ISA 600.

    Stakeholder Input
    NFRA encourages stakeholders to provide their views and
    comments on specific questions related to the proposed
    revisions.

    Deadline
    The last date for receiving comments is 30 October 2024.

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