Financial statements is a set of documents which show the result of business operation during a period - how the result

was achieved and the position of assets and liabilities on the given date.

International Auditing and Assurance Standards Board IAASB achieves this objective by: Establishing high quality auditing standards and guidance for financial statement audits that are generally accepted and recognized by investors, auditors, governments, banking regulators, securities regulators and other key stakeholders across the world; Establishing high quality standards and guidance for other types of assurance services on both financial and non-financial matters; Establishing high quality standards and guidance for other related services; Establishing high quality standards for quality control covering the scope of services addressed by the IAASB; and Publishing other pronouncements on auditing and assurance matters, thereby advancing public understanding of the roles and responsibility of professional auditors and assurance service providers

Auditing and Assurance Standards are now renamed

based on the type of assurance provided by the engagement undertaken by a member, viz.,

(i) Standards on Auditing (SAs) - to be applied in the audit of historical financial information (ii) Standards on Review Engagements (SREs) - to be applied in the review of historical financial information (iii) Standards on Assurance Engagements (SAEs) - to be applied in assurance engagements, engagements dealing with subject matters other than historical financial information (iv) Standards on Related Services (SRSs) - to be applied to engagements to apply agreed upon procedures to information and other related services engagements such as compilation engagements

Standards pertaining to a particular group is allotted a number from that numerical series:
Type of Standard Numerical Series Standards on Quality Control 01-99 Standards on Auditing 100-999 Standards on Review Engagements 2000-2699 Standards on Assurance Engagements 3000-3699 Related Services 4000-4699

The Standards on Auditing have also been further divided into seven categories

given below. Existing AAS Number Title of the Standard New Number of the Standard 1 Basic Principles Governing an Audit SA 200 2 Objectives and Scope of the Audit of Financial Statements SA 200A Nature of Auditing 1.7 Existing AAS Number Title of the Standard New Number of the Standard 3 Audit Documentation SA 230 4 The Auditors Responsibilities Relating To Fraud in an Audit of Financial Statements SA 240 5 Audit Evidence SA 500 6 Risk Assessments and Internal Control* SA 400 7 Using the Work of Internal Auditor SA610 8 Planning an Audit of Financial Statements SA 300 9 Using the Work of an Expert SA 620

10 Using the Work of another Auditor SA 600 11 Written Representations SA 580 12 Responsibility of Joint Auditors SA 299 13 Materiality in Planning and Performing an Audit SA 320 14 Analytical Procedures SA 520 15 Audit Sampling SA 530 16 Going Concern SA 570 17 Quality Control for Audit Work SA 220 18 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures SA 540 19 Subsequent Events SA 560 20 Knowledge of the Business* SA 310 21 Consideration of Laws and Regulations in an Audit of Financial Statements SA 250 22 Initial Audit Engagements Opening Balances SA 510 23 Related Parties SA 550 24 Audit Considerations Relating to Entities Using Service Organisations SA 402 25 Comparatives SA 710 26 Agreeing the Terms of Audit Engagements SA 210 27 Communication with Those Charged with Governance SA 260 28 The Auditor's Report on Financial Statements SA 700 29 Audit in a Computer Information Systems Environment* SA 401 30 External Confirmations SA 505

31 Engagements to Compile Financial Information SRS 4410 32 Engagements to Perform Agreed- upon Procedures Regarding Financial Information SRS 4400 33 Engagements to Review Financial Statements SRE 2400 34 Audit Evidence Additional Considerations for Specific items SA 501 35 The Examination of Prospective Financial Information SAE 3400 **