TMI BlogPreface to the Standards on Quality Control, Auditing, Assurance, Review, and Related Services rendered by the Cost AccountantsX X X X Extracts X X X X X X X X Extracts X X X X ..... rnational Auditing and Assurance Standards Board (IAASB) established by the IFAC has issued series of International Standards on Auditing, which primarily focus on the Financial audit. There are fundamental differences between the scope and methodology of financial and cost audit. Therefore, it will not be appropriate to adopt in full or with modifications the International Standards on Auditing issued by the IAASB. However in formulating the standards, the CAASB will ensure that the framework and other aspects of the International Standards are considered, to the extent relevant and applicable to cost audit. Standards issued by the Cost Audit and Assurance Standards Board under the authority of the Council of the Institute of Cost Accountants of India The CAASB issues the following Standards under the authority of the Council of the Institute of Cost Accountants of India: (a) Standards on Quality Control - to be applied for all services rendered by the Cost Accountants. (b) Standards on Auditing - to be applied in the audit of historical cost statements. (c) Standards on Review Assignments - to be applied in the review of historical cost statements. (d) Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal cost accountants in implementing the Standards on Quality Control, Standards on Auditing, Assignment Standards, and Standards on Related Services issued by the CAASB under the authority of the Council of the Institute. Guidance Notes are also issued to provide guidance on other generic or industry specific issues, not necessarily arising out of a Standard. Professional cost accountants should be aware of and consider Guidance Notes applicable to the assignment. A professional cost accountant who does not consider and apply the guidance included in the relevant Guidance Note should justify the appropriateness and completeness of the alternate procedures adopted by him to deal with the objectives and basic principles set out in the Guidance Note. Technical Guides, Practice Manuals and other Papers The CAASB may also publish Technical Guides, Practice Manuals and other Papers. Technical Guides are generally aimed at imparting broad knowledge to the professional cost accountants about a particular aspect of an industry. Practice Manuals are aimed at providing additional guidance to the professional cost accountants in performing audit and other related assignments. Other Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards, Standards on Auditing and Standards on Related Services so that they may be issued under the authority of the Council of the Institute. (c) To develop Guidance Notes on issues arising out of any Standard or on auditing issues pertaining to any specific industry or on generic issues so that they may be issued under the authority of the Council of the Institute. (d) To formulate and issue Technical Guides, Practice Manuals and other Papers under its own authority for guidance of Cost Accountants in the cases felt appropriate by the Board. (e) To review the existing Standards, Guidance Notes, Technical Guides, Practice Manuals and other Papers to assess their relevance in the changed conditions and to undertake their revision, if necessary. (f) To provide Interpretations or formulate General Clarifications, where necessary, on issues arising from the Standards. Procedure for issuing the Standards The following procedure is adopted for formulating and issuing the Standards: I. Proposals to develop new Standards or revise the existing ones, are identified by the CAASB based on the national and international developments, inputs from members of the Counci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Exchange Board of India vii. Institute of Chartered Accountants of India viii. Institute of Company Secretaries of India ix. Industry Associations such as CII, FICCI, ASSOCHAM and PHDCCI x. Concerned regulators or any other body considered relevant by the CAASB keeping in view the nature and requirements of the Standard. VIII. To allow adequate time for due consideration and comment from all interested parties, exposure period is of minimum 45 days or higher as decided by the CAASB. IX. The comments and suggestions received within the exposure draft period are read and considered by the CAASB. Outcome of each comment/suggestion is recorded in the minutes of the relevant CAASB meeting. X. After taking into consideration the comments received, the draft of the proposed Standard is finalised by the CAASB and submitted to the Council of the Institute for its consideration and approval. XI. The Council of the Institute considers the final draft of the proposed Standard, and if found necessary, modifies the same in consultation with the CAASB. The concerned Standard is then issued under the authority of the Council of the Institute. XII. The effective date of im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Institute for its consideration and approval. IX. The Council of the Institute considers the final draft of the proposed Guidance Note, and if found necessary, modifies the same in consultation with the CAASB. The concerned Guidance Note is then issued under the authority of the Council of the Institute. X. The Guidance Note of a Standard is explanatory to the corresponding Standard and will not override the same. Procedure for issuing Technical Guides, Practice Manuals and other Papers For issuance of a Technical Guide, Practice Manual etc., the procedure followed by the CAASB is generally the same as in case of a Guidance Note except that the draft Technical Guide, Practice Manual etc. is never exposed for public comments. Also since Technical Guide, Practice Manual etc. do not have any authority attached to them, those are not required to be placed for consideration and approval by the Council of the Institute; rather they are issued by the CAASB under its own authority. Procedure for Revision of the Standards, Guidance Notes, Technical Guides, Practice Manuals and other Papers The CAASB undertakes revision of the Standards, Guidance Notes, Technical Guid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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