Important Standards on Auditing (SAs) – ICAI
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What are Standards on Auditing (SAs)?

Standards on Auditing (SAs) are a set of professional guidelines issued by the Institute of Chartered Accountants of India (ICAI). These standards guide Chartered Accountants (CAs) in planning, performing, and reporting on audits in a structured, transparent, and ethical manner.

Whether you’re conducting a statutory audit, a tax audit, or a bank branch audit, these standards ensure that your audit work is not only technically sound but also legally and professionally compliant.

In short, SAs are the backbone of audit quality.

Important Standards on Auditing (SAs)

Foundational SAs

  • SA 200 – Overall Objectives of the Independent Auditor
  • SA 210 – Agreeing the Terms of Audit Engagements
  • SA 220 – Quality Control for an Audit
  • SA 230 – Audit Documentation
  • SA 240 – Auditor’s Responsibilities Relating to Fraud
  • SA 250 – Consideration of Laws and Regulations
  • SA 260 – Communication with Those Charged with Governance
  • SA 265 – Communicating Deficiencies in Internal Control (Often missed but important)

Audit Planning & Risk Assessment

  • SA 299 – Joint Audits of Financial Statements
  • SA 300 – Planning an Audit
  • SA 315 – Identifying and Assessing the Risks of Material Misstatement
  • SA 320 – Materiality in Planning and Performing an Audit
  • SA 330 – Auditor’s Responses to Assessed Risks

Audit Evidence

  • SA 402 – Audit Considerations Relating to an Entity Using a Service Organization
  • SA 450 – Evaluation of Misstatements Identified During the Audit
  • SA 500 – Audit Evidence
  • SA 501 – Audit Evidence – Specific Considerations (Inventory, Legal Claims, Segment Info)
  • SA 505 – External Confirmations
  • SA 510 – Initial Audit Engagements – Opening Balances
  • SA 520 – Analytical Procedures
  • SA 530 – Audit Sampling
  • SA 540 – Auditing Accounting Estimates
  • SA 550 – Related Parties
  • SA 560 – Subsequent Events
  • SA 570 – Going Concern
  • SA 580 – Written Representations

Using Work of Others

  • SA 600 – Using the Work of Another Auditor
  • SA 610 – Using the Work of Internal Auditors
  • SA 620 – Using the Work of an Auditor’s Expert

Audit Conclusions & Reporting

  • SA 700 – Forming an Opinion and Reporting on Financial Statements
  • SA 701 – Communicating Key Audit Matters (KAM)
  • SA 705 – Modifications to the Opinion
  • SA 706 – Emphasis of Matter & Other Matter Paragraphs
  • SA 710 – Comparative Information – Corresponding Figures and Comparative FS
  • SA 720 – Auditor’s Responsibilities Relating to Other Information

SAs to Focus by Audit Type

  • Statutory Audit: SA 200, 230, 240, 315, 330, 700–706
  • Tax Audit: SA 230, 500, 540, 580
  • Bank Audit: SA 505, 580, 705
  • Internal Audit: Use SAs + ICAI Standards on Internal Audit
  • Fraud Risk Audits: SA 240, 250, 550

Tips for Practising CAs / professionals

General Audit Execution Tips

  • Always begin with SA 200 & SA 210: Set the foundation — ensure terms of engagement are clearly agreed upon with the client.
  • Document everything as per SA 230 — if it’s not documented, it’s considered not done.
  • Don’t ignore SA 240: Always perform fraud risk procedures, especially in cash-heavy or control-deficient environments.
  • Communicate early with management and those charged with governance (SA 260).

Planning & Risk Assessment Tips

  • Do a thorough risk assessment (SA 315) — Understand business processes, control risks, and tailor the audit accordingly.
  • Use checklists & planning templates under SA 300 for consistency across clients.
  • Define materiality (SA 320) practically — use industry benchmarks and client size.
  • Respond to risk with tailored audit tests (SA 330) — avoid one-size-fits-all testing.

Evidence Gathering Tips

  • Use external confirmations (SA 505) wherever possible — banks, loans, debtors.
  • Always physically verify inventory (SA 501) if material — involve experts if needed.
  • Apply analytical procedures (SA 520) to identify anomalies — ratios, trends, etc.
  • Be skeptical of accounting estimates (SA 540) — check assumptions, compare with actuals.

Internal Control & Deficiencies

  • Report internal control weaknesses (SA 265) — even if not reportable in audit report, communicate in management letter.
  • Review previous year’s deficiencies and check if resolved.

Audit Documentation Tips

  • Keep proper working paper files — planning, execution, conclusion should be traceable.
  • Use cloud-based tools or audit software to maintain version control and track reviewer comments.

Special Cases

  • Joint audit? Follow SA 299 — clearly define scope and division of work.
  • Bank audits? Focus on SA 505 (confirmations), SA 580 (representations), and documentation.
  • Using an expert? (SA 620) — Check qualifications, independence, and documentation trail.

Bonus Tips for GST, Tax, and Internal Audits:

  • Use SA 500 and SA 540 heavily in tax audits — for expense claims, estimates, and provisions.
  • For GST turnover reconciliation, rely on analytical procedures (SA 520) and external confirmations.
  • Internal audits should also align with SAs where applicable — especially SA 240 (fraud), SA 315 (risk), SA 265 (control weaknesses)

Reporting Tips

  • Use SA 700 as base: For every audit report, ensure structure and content is per this SA.
  • If you have concerns about FS, consider SA 705 (modify opinion) or SA 706 (emphasis of matter).
  • Disclose KAMs (SA 701) only in listed companies and large audits — tailor based on engagement.
  • Compare prior year info for accuracy under SA 710.