CA Final Audit Notes (Sep/June’23 Edition) Index

Ch. no. Main topic Sub topics Pg no.

1 SQC 1 Elements of system of quality control 1.1
1 SQC 1 Leadership responsibilities for quality within firm 1.1
1 SQC 1 Independence 1.2
1 SQC 1 Acceptance and continuance of client relationships and engagement 1.2
1 SQC 1 Evaluating integrity of client 1.3
1 SQC 1 Withdrawal from engagement 1.4
1 SQC 1 Human resources 1.4
1 SQC 1 Assignment of engagement teams 1.4
1 SQC 1 Engagement performance 1.5
1 SQC 1 Consultation 1.5
1 SQC 1 Engagement quality control reviewer 1.5
1 SQC 1 Engagement documentation 1.6
1 SQC 1 Complaints an allegation 1.7
1 SA 220 Difference of opinion 1.7
1 SA 200 Overall objective of auditor 1.8
1 SA 200 Definitions 1.8
1 SA 200 Ethical requirements relating to audit of financial statements 1.9
1 SA 200 Professional skepticism 1.9
1 SA 200 Professional judgement 1.9
1 SA 200 Sufficient and appropriate audit evidence 1.10
1 SA 200 Audit risk 1.10
1 SA 200 Scope of audit 1.11
1 SA 200 The premise (responsibilities of management and TCWG) 1.11
1 SA 200 Inherent limitations of Audit 1.12
1 SA 200 Conduct of audit in accordance with SAs 1.13
1 SA 210 Objective 1.14
1 SA 210 Preconditions of audit 1.14
1 SA 210 Limitations on scope prior to audit engagement acceptance 1.14
1 SA 210 Contents of agreement on terms of audit engagement 1.14
1 SA 210 Recurring audits 1.15
1 SA 210 Acceptance of Change in terms of audit engagement 1.15
1 SA 210 FRF prescribed by law or regulation 1.15
Factors relevant to auditor’s determination of acceptability of FRF to be
1 SA 210 applied in preparation of FS 1.16
1 SA 210 Audit of components 1.16
1 SA 230 Purpose of audit documentation 1.16
1 SA 230 Form, content and extent of audit documentation 1.16
1 SA 230 Factors affecting form, content and extent of audit documentation 1.17
1 SA 230 Documentation of matters arising after date of auditor’s report 1.17
1 SA 230 Assembly of final audit file 1.17
1 SA 240 Objectives of auditor 1.19
Techniques: fraudulent financial reporting and management override of
1 SA 240 controls 1.19
Fraud risk Factors relating to misstatement arising from misappropriation
1 SA 240 of assets 1.20
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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
1 SA 240 Responsibilities of auditor 1.20
1 SA 240 Duties of auditor for prevention and detection of fraud 1.21
1 SA 240 Auditor unable to complete Engagement 1.21
1 SA 240 Enquiring about management assessment of fraud risk 1.21
1 SA 240 Identification & assessment of risk of material misstatement due to fraud 1.22
Audit procedures responsive to risk related to Management override of
1 SA 240 controls 1.22
1 SA 250 Management responsibility for compliance with laws and regulations 1.24
1 SA 250 Auditor responsibility in relation to compliance with law and regulation 1.24
1 SA 250 Auditor consideration of compliance with laws and regulation 1.25
1 SA 250 Audit procedures when non-compliance is identified or suspected 1.25
1 SA 250 Reporting of identified or suspected non-compliance with L/R 1.26
1 SA 250 Indicators of non-compliance with L/R 1.26
1 SA 260 Role of communication 1.27
1 SA 260 Auditors objective 1.28
1 SA 260 Matters to be communicated 1.28
1 SA 260 Auditor independence 1.29
1 SA 260 Factors affecting mode of communication 1.29
1 SA 265 Auditors objective 1.30
1 SA 265 Requirements 1.30
1 SA 265 How to determine if there are significant deficiencies in internal control 1.30
1 SA 265 How to decide if identified deficiency is significant or not 1.31
1 SA 265 How detailed should be our communication of significant deficiencies? 1.32
1 SA 299 Audit planning, risk assessment and allocation of work 1.32
1 SA 299 Responsibility and coordination among joint auditors 1.33
1 SA 299 Audit conclusion and reporting 1.33
1 SA 315 Objective of auditor and assertions 1.36
1 SA 315 Internal control 1.37
1 SA 315 Methods included in auditors risk assessment procedures 1.37
Auditor is required to obtain an understanding of entities risk assessment
1 SA 315 procedures 1.37
1 SA 315 Auditors process of assessing ROMM 1.38
1 SA 315 Understanding of entity information system relevant to financial reporting 1.38
1 SA 315 IT benefits 1.38
1 SA 315 IT risk 1.39
1 SA 315 Significant risks 1.39
Further audit procedures in response to assessed ROMM at assertion
1 SA 330 level 1.40
1 SA 330 Should we test controls every time we do audit 1.41
1 SA 330 How to know how much testing is to be done 1.41
1 SA 330 Using audit evidence obtained during interim period 1.42
1 SA 320 Performance materiality 1.42
1 SA 320 Determining materiality and performance materiality when planning audit 1.42
1 SA 320 Revision of materiality 1.43
1 SA 320 Benchmark 1.43
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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
How to know if SO's Services are relevant to user entity's financial
1 SA 402 reporting 1.44
1 SA 402 Auditor objectives 1.45
1 SA 402 Type of reports 1.45
1 SA 402 Obtaining understanding of services provided by service organisation 1.45
1 SA 402 Auditors considerations 1.45
1 SA 402 Information w.r.t. controls at sub service organization 1.46
1 SA 402 Reporting by user auditor 1.46
Report on description, design and operating effectiveness of controls at
1 SA 402 service organization 1.46
1 SA 450 objective 1.47
1 SA 450 Sources of misstatement 1.47
1 SA 450 Accumulation of identified misstatements 1.47
1 SA 450 Consideration of identified misstatements as audit progresses 1.47
1 SA 450 Communication and correction of misstatements 1.48
1 SA 450 Uncorrected misstatements 1.48
1 SA 500 objective 1.49
1 SA 500 Information to be used as audit evidence (management expert) 1.49
Matters affecting NTE of audit procedures in case of information produced
1 SA 500 using work of management expert 1.50
1 SA 500 Methods of obtaining audit evidence 1.50
1 SA 500 Factors indicating reliability of the evidence 1.51
1 SA 501 Inventory 1.51
1 SA 501 Litigation and claims 1.53
1 SA 501 Segment information 1.54
1 SA 505 External confirmation procedures 1.55
1 SA 505 Management refusal to allow auditor to send a confirmation request 1.55
1 SA 505 Positive confirmation request 1.55
1 SA 505 Negative confirmation request 1.56
1 SA 505 Alternate audit procedures : non responses 1.56
1 SA 505 Topics related to external confirmation in SA 330 1.56
1 SA 505 How to know if we can use external confirmation as audit procedures 1.57
1 SA 510 Audit procedures: opening balance 1.58
1 SA 510 Consistency of accounting policies 1.58
1 SA 510 Conclusion and reporting 1.58
1 SA 520 Substantive analytical procedures 1.60
1 SA 520 Suitability of particular analytical procedure for given assertion 1.60
1 SA 520 Investigating results of analytical procedures 1.61
1 SA 520 Techniques for analytical procedures 1.61
1 SA 530 Objective 1.62
1 SA 530 Types of sampling risk 1.62
1 SA 530 Tolerable misstatements 1.63
1 SA 530 Sample design, size and selection of items for testing 1.63
1 SA 530 Performing audit procedures 1.63
1 SA 530 Nature and cause of deviation and misstatements 1.63
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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
1 SA 530 Projecting misstatements 1.64
1 SA 530 Evaluating results of audit sampling 1.64
1 SA 530 Sample selection methods 1.65
1 SA 530 Factors determining extent of checking on a sampling plan 1.66
Accounting estimates involve relatively low estimation uncertainty and give
1 SA 540 rise to lower ROMM 1.67
Accounting estimates with relatively high estimation uncertainty based on
1 SA 540 significant assumptions 1.67
Risk assessment procedures and related activities identifying and
1 SA 540 assessing ROMM 1.68
1 SA 540 Inquiries from management 1.68
1 SA 540 Estimation uncertainty: Accounting estimates with significant risk 1.69
1 SA 540 Understanding of assumptions 1.69
1 SA 540 What factors influenced degree of estimation uncertainty 1.70
1 SA 540 Review of outcome of accounting estimates 1.70
1 SA 540 Disclosures in F.S. 1.71
1 SA 540 written representation 1.71
1 SA 550 Responsibility & Objectives of auditor 1.72
1 SA 550 Engagement team discussion 1.73
1 SA 550 Understanding entity’s related party relationships and transactions 1.73
1 SA 550 Maintain Alertness for RP Information when reviewing records/documents 1.74
1 SA 550 Documents to be inspected for identifying RP 1.74
1 SA 550 Fraud risk factor Associated with a related party with dominant influence 1.74
Identification of previously unidentified/undisclosed RP or significant RP
1 SA 550 transactions 1.75
What if identified significant RP transaction outside entities normal course
1 SA 550 of business 1.75
1 SA 560 Events occurring between date of FS and date of auditor report 1.76
The facts that become known to auditor after date of audit report but
1 SA 560 before FS are issued 1.77
1 SA 560 Facts which become known to auditor after FS are issued 1.77
1 SA 570 Going concern basis of accounting 1.78
Responsibility for assessment of entities ability to continue as going
1 SA 570 concern 1.78
1 SA 570 Auditors responsibilities 1.79
1 SA 570 Risk assessment procedures and related activities 1.79
1 SA 570 Evaluating management assessment of going concern 1.80
1 SA 570 Additional audit procedures when events or conditions are identified 1.80
1 SA 570 Auditors conclusion 1.81
1 SA 570 Adequacy of disclosures 1.81
1 SA 570 Implications for reporting 1.82
1 SA 570 Communication with TCWG 1.82
1 SA 570 Significant delay in an approval of FS 1.82
Events and conditions that may cast Significant doubt on entities ability to
1 SA 570 continue as going concern 1.83
1 SA 580 Objectives of auditor 1.84
1 SA 580 Date and period covered by WR 1.84
1 SA 580 Doubt as to reliability of written representation 1.85
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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
1 SA 580 Requested written representation not provided 1.85
1 SA 600 Acceptance as principle auditor 1.86
1 SA 600 Principle auditor's procedures 1.86
1 SA 600 Roll of principle and other auditor ( Coordination b/w auditors) 1.86
1 SA 600 Reporting considerations 1.87
1 SA 600 Division of responsibility 1.87
1 SA 620 Types of report or opinions auditor can obtain from auditor's expert 1.88
1 SA 620 Objectives of auditor 1.88
1 SA 620 Areas where auditor expert can assist the auditor 1.88
1 SA 620 Considerations when deciding to use work of auditor's expert 1.88
1 SA 620 When management has used a management expert 1.89
1 SA 620 Nature, time extent of audit procedures when using work of auditor expert 1.89
1 SA 620 Competence, capability and objectivity of auditor expert 1.89
1 SA 620 Evaluating objectivity of auditor's external expert 1.90
1 SA 620 Agreement with auditor's expert 1.90
1 SA 620 Evaluating adequacy of auditor's expert work 1.90
1 SA 620 Use of Significant assumptions and methods 1.91
1 SA 620 Source data ( Relevance, completeness and accuracy) 1.91
1 SA 620 Inadequate work 1.91
1 SA 620 Reference to auditor's expert in auditor's report 1.91
1 SA 700 Objective 1.92
1 SA 700 Specific evaluation by the auditor 1.92
1 SA 700 Forming an opinion on FS 1.92
1 SA 700 Basic elements of audit report 1.92
1 SA 700 Audit report for audit as per both SAs and international standards on audit 1.96
1 SA 700 Supplementary info. presented with FS 1.96
1 SA 701 Objective & Communicating KAM is not 1.97
1 SA 701 Factors determine key audit matters 1.97
1 SA 701 Can matters other than disclosed in FS be KAM? 1.97
1 SA 701 Communicating key audit matters 1.98
1 SA 701 Placement of KAM section in auditors report 1.98
1 SA 701 KAM when opinion is modified 1.98
1 SA 705 Objective and definition of pervasive 1.100
1 SA 705 Opinions: Qualified, adverse and disclaimer of opinion 1.99
1 SA 705 Management imposed limitations after acceptance of engagement 1.100
1 SA 705 Auditors in ability to obtain SAAE/ Limitation on scope of audit 1.100
1 SA 706 EOM para 1.101
1 SA 706 OM para 1.102
1 SA 706 EOM para is not substitute for 1.102
1 SA 710 Audit procedures for comparative information 1.103
1 SA 710 Corresponding figures 1.103
1 SA 710 Reporting for comparative FS 1.104
1 SA 710 Reporting treatment common to both ( Corresponding and comparative) 1.104

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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
1 SA 720 scope 1.105
1 SA 720 Obtaining the other information 1.105
1 SA 720 Reading and considering the other information 1.105
1 SA 720 When other information is materially misstated 1.105
1 SA 720 Reporting 1.106
Example of amount or other items that may be included in other
1 SA 720 information 1.106
2 Initial topics Fundamental principles 2.1
2 Initial topics Types of threats 2.2
Circumstances that may create a threat for professional accountant when
2 Initial topics undertaking a professional service 2.2
Circumstances that may create a threat for professional accountant when
2 Initial topics undertaking a professional activity 2.3
2 Initial topics Safeguards to address the threats 2.4
2 Initial topics Disabilities for the purpose of membership 2.4
2 Initial topics Types of members 2.4
2 Initial topics Effective date of restoration in case of membership removal 2.5
2 Initial topics Penalty for falsely claiming to be a member 2.5
2 Initial topics Cancellation and restoration of COP 2.5
2 Initial topics Members- deemed to be in practice 2.6
2 Initial topics Member in practice prohibited from using a designation other than CA 2.8
2 Initial topics Branch office (Sec 27) 2.9
2 Initial topics KYC norms 2.10
Part 1 to First
2 schedule Clause 1 2.11
Part 1 to First
2 schedule Clause 2 2.11
Part 1 to First
2 schedule Clause 3 2.13
Part 1 to First
2 schedule Clause 4 2.13
Part 1 to First
2 schedule Clause 5 2.14
Part 1 to First
2 schedule Clause 6 2.14
Part 1 to First
2 schedule Clause 7 2.19
Part 1 to First
2 schedule Clause 8 2.22
Part 1 to First
2 schedule Clause 9 2.23
Part 1 to First
2 schedule Clause 10 2.24
Part 1 to First
2 schedule Clause 11 2.25
Part 1 to First
2 schedule Clause 12 2.28
Part 2 to First
2 schedule Clause 1 2.29
Part 2 to First
2 schedule Clause 2 2.29
Part 3 to First
2 schedule Clause 1 2.29

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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
Part 3 to First
2 schedule Clause 2 2.29
Part 3 to First
2 schedule Clause 3 2.30
Part 4 to First
2 schedule Clause 1 2.30
Part 4 to First
2 schedule Clause 2 2.30
Part 1 to second
2 schedule Clause 1 2.31
Part 1 to second
2 schedule Clause 2 2.32
Part 1 to second
2 schedule Clause 3 2.32
Part 1 to second
2 schedule Clause 4 2.32
Part 1 to second
2 schedule Clause 5 2.33
Part 1 to second
2 schedule Clause 6 2.33
Part 1 to second
2 schedule Clause 7 2.33
Part 1 to second
2 schedule Clause 8 2.34
Part 1 to second
2 schedule Clause 9 2.34
Part 1 to second
2 schedule Clause 10 2.35
Part 2 to second
2 schedule Clause 1 2.35
Part 2 to second
2 schedule Clause 2 2.36
Part 2 to second
2 schedule Clause 3 2.36
Part 2 to second
2 schedule Clause 4 2.36
Part 3 to second
2 schedule Other misconduct in relation to members of the institute generally 2.36
Council general
2 guidelines Chapter I, II 2.37
Council general
2 guidelines Chapter V: Maintenance of books of accounts 2.37
Council general Chapter VI: Tax audit assignments under section 44AB of income tax act,
2 guidelines 1961 2.37
Council general Chapter VII: Appointment of an auditor in case of non-payment of
2 guidelines undisputed fees 2.37
Council general
2 guidelines Chapter VIII: Specified number of audit assignments 2.38
Council general
2 guidelines Chapter IX: Appointment as statutory auditor 2.38
Council general
2 guidelines Chapter X : Appointment of an auditor when he is indebted to a concern 2.38
Council general
2 guidelines Chapter XI: Directions in case of unjustified removal of auditors 2.39
Council general
2 guidelines Chapter XV: Networking 2.39
Council general
2 guidelines Chapter XIV: Unique document identification number (UDIN) guidelines 2.41
Council general
2 guidelines Chapter XVI: Logo guidelines 2.41
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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
Council general
2 guidelines Chapter XVII: Guidelines for corporate form of practice 2.41
2 Other topics Recommended self-regulatory measures 2.42
2 Other topics Recent decisions of ethical standard board 2.42
2 Other topics Disciplinary proceedings 2.43
2 Other topics NOCLAR 2.43
2 Summary Summary 2.45
3 Audit planning Benefits of planning audit 3.1
3 Audit planning Nature and extent of planning 3.1
3 Audit planning Planning - a continuous process 3.1
3 Audit planning Additional matters for initial audit 3.1
3 Audit planning Contents of audit plan 3.2
3 Audit planning Relationship between overall audit strategy and audit plan 3.2
3 Audit planning Overall audit strategy 3.2
3 Audit planning Benefits of overall audit strategy 3.2
3 Audit planning Considerations in establishing overall audit strategy 3.3
3 Audit planning Documenting audit plan 3.3
3 Audit planning Audit program 3.4
3 Audit planning Circumstances requiring alteration of audit program 3.4
3 Audit planning Key phases in audit execution 3.4
3 Audit planning Example of audit program: movie theatre complex 3.4
Identification and verification of plant & machinery, tools & dies to check
3 Audit planning obsolescence 3.5
Is M.O.M increase in wastage -> audit plan to locate wastage of raw
3 Audit planning material 3.6
Risk assessment
4 & internal control Audit risk components 4.1
Risk assessment
4 & internal control Steps for risk identification 4.1
Risk assessment
4 & internal control Indicators of possible potential misstatement 4.2
Risk assessment
4 & internal control Audit procedures in case purchases are made without POs 4.2
Risk assessment
4 & internal control Steps in conduct of risk-based audit 4.2
Risk assessment
4 & internal control Internal control 4.3
Risk assessment
4 & internal control Limitations of internal control 4.4
Risk assessment
4 & internal control Structure of internal control 4.4
Risk assessment
4 & internal control Components of internal control 4.5
Risk assessment
4 & internal control Risk can arise or change due to certain circumstances 4.6
Risk assessment
4 & internal control Control activities 4.6
Risk assessment
4 & internal control Internal check system 4.7
Risk assessment
4 & internal control Considerations for effectiveness of internal check 4.7
Risk assessment
4 & internal control Standard operating procedures 4.8
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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
Risk assessment
4 & internal control Basic consumptions about good internal control questionnaire 4.8
Risk assessment
4 & internal control Flow chart depiction of flow of documents 4.9
Risk assessment
4 & internal control Material weakness 4.9
Risk assessment
4 & internal control International internal control frameworks 4.10
5 Group audits Mandatory under company's act, 2013 5.1
5 Group audits Requirement to prepare CFS doesn’t apply 5.1
5 Group audits Responsibility of parent 5.2
5 Group audits Auditor's objectives in audit of CFS 5.2
5 Group audits Auditor's considerations about materiality in audit of CFS 5.2
5 Group audits Planning audit of CFS 5.3
5 Group audits How auditor ensures completeness of components included in CFS 5.3
5 Group audits Permanent consolidation adjustments 5.4
5 Group audits Current period consolidation adjustments 5.4
Example of info. which is given in SFS of parent or subsidiary need not be
5 Group audits given in CFS 5.5
5 Group audits Management representation regarding CFS 5.5
5 Group audits Reporting 5.5
6 Bank audit Special audit considerations 6.1
6 Bank audit Legal framework 6.1
6 Bank audit Contents of appointment letter 6.1
6 Bank audit Conduct of audit 6.2
6 Bank audit Special considerations in IT environment 6.3
6 Bank audit Internal controls: General, cash, clearings 6.4
Internal controls: Bills for collection, bills purchased, loans & advances,
6 Bank audit demand drafts, Credit card operations. 6.5
6 Bank audit SLR/CRR requirement 6.6
Verification of asset: Cash, balance with RBI, money at call/short notice,
6 Bank audit spl purpose certificates relating to investment 6.7
6 Bank audit Advances 6.7
6 Bank audit Provisioning of NPA 6.8
6 Bank audit Sale/ purchase of NPA 6.10
Verification of liabilities: Current and saving account, borrowing, bills
6 Bank audit payable 6.12
6 Bank audit Contingent liabilities 6.14
6 Bank audit Auditors reports 6.15
6 Bank audit LFAR 6.15
6 Bank audit Concurrent audit 6.16
7 NBFC Definition 7.1
7 NBFC Companies exempt from RBI registration 7.1
7 NBFC NBFC classification 7.2
7 NBFC Categorization of NBFC carrying out specific activity 7.3
7 NBFC Difference between bank and NBFC 7.3
7 NBFC Prudential norms: Capital adequacy ratio, provisioning 7.3
7 NBFC Audit procedures 7.4
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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
7 NBFC Classification of frauds by NBFC 7.5
7 NBFC Audit checklist- NBFC-investment and credit company 7.6
7 NBFC Auditor's duty to report to BOD 7.6
7 NBFC Reasons for unfavourable/ qualified statements 7.7
7 NBFC Obligation of auditor to submit an exception report to RBI 7.7
7 NBFC Difference between division II & division III of schedule III 7.8
7 NBFC CARO 2020 reporting 7.8
8 PSU audit Articles of constitution 8.1
8 PSU audit Organizations subject to C&AG audit 8.1
8 PSU audit 3 committees that consider audit reports of C&AG 8.1
8 PSU audit C&AG's role as friend, philosopher and guide to committees 8.2
8 PSU audit Objective and scope of PSU audit 8.2
8 PSU audit Principals of PSU audit 8.3
8 PSU audit Roll of C&AG in audit of government company 8.3
8 PSU audit Compliance audit 8.4
8 PSU audit Performance audit 8.4
Case study: Performance audit of enforcement mechanism administering
8 PSU audit provisions of minimum wages act 8.5
8 PSU audit Planning for performances audit 8.5
8 PSU audit Methods and Means for conducting performance audit 8.6
8 PSU audit Comprehensive audit 8.6
8 PSU audit Proprietary audit 8.7
8 PSU audit Parts of audit report of C&AG 8.7
9 Internal audit Indicative objectives and scope of internal audit 9.1
9 Internal audit Applicability of internal audit 9.1
9 Internal audit Who can be internal auditor 9.1
9 Internal audit Critical activities performed by internal audit function 9.2
9 Internal audit Main responsibilities of internal auditor 9.2
9 Internal audit Scope of internal auditor’s work 9.2
9 Internal audit Qualities of internal auditor 9.4
9 Internal audit Performing internal audit engagement 9.4
9 Internal audit 2 Stages reporting 9.5
9 Internal audit Key elements of internal audit report 9.6
9 Internal audit Follow up 9.6
9 Internal audit Relationship between Internal Auditor and external auditor 9.7
9 Internal audit Difference between internal and external audit 9.7
9 Internal audit Factors responsible for high employee attrition rate 9.7
9 Internal audit Internal audit as management function 9.8
9 Internal audit Audit trail 9.8
9 Internal audit Approach to develop internal audit plan 9.9
9 SA 610 Objective of auditor were entity has internal audit functions 9.10
Evaluating whether work of internal audit function can be used for audit
9 SA 610 purpose 9.10
9 SA 610 Determining nature and extent of work of internal audit function 9.10

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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
Written agreements: Prior to using IA to provide Direct assistance for
9 SA 610 purpose of audit 9.11
9 SA 610 Areas where internal auditor can't provide direct assistance 9.11
9 SA 610 Documentation External auditor uses IA to provide direct assistance 9.11
Factors to be considered while evaluating existence & significance of
9 SA 610 threats to objectivity of internal auditor 9.12
10 Due diligence Importance of due diligence 10.1
10 Due diligence Classification of due diligence 10.1
10 Due diligence Scope of financial due diligence 10.1
10 Due diligence Hidden liabilities 10.2
10 Due diligence Overvalued assets 10.2
10 Due diligence Work approach to due diligence 10.2
10 Due diligence How to conduct due diligence 10.3
10 Due diligence Contents of DD report 10.3
Forensic
11 accounting Difference between other audits and forensic accounting 11.1
11 Forensic Forensic accounting services 11.1
11 Forensic Need for forensic accounting 11.1
11 Forensic Process of forensic Accounting 11.2
11 Forensic Forensic accounting and Investigation report 11.3
11 Forensic Key elements of report 11.3
12 Investigation Difference between audit and investigation 12.1
12 Investigation Steps in investigation 12.1
12 Investigation Important issues in mind by investigator while preparing his report 12.1
12 Investigation Special issues in investigation 12.2
12 Investigation Factors- future maintainability of turnover 12.2
12 Investigation Investigation on behalf of incoming partner 12.3
12 Investigation Investigation in valuation of shares of private company 12.3
12 Investigation Investigation on behalf of bank/FI proposing to advance loan to company 12.3
Steps involved in verification of assets and liabilities included in B/S of
12 Investigation borrower company 12.4
12 Investigation Fraud at operational level employees 12.5
Situations in which frauds can occur: Cash receipts, Cash payments,
12 Investigation Supplier ledger, customer ledger, Inventory fraud 12.5-8
12 Investigation Indicators of fraud 12.8
12 Investigation Fraud diamond: four elements of fraud 12.9
12 Investigation Will auditor be able to detect it? 12.9
12 Investigation Investigation on behalf of individual or firm proposing to buy business 12.9
12 Investigation Investigation in connection with review of profit /financial forecast 12.10
13 SA 800 Considerations when accepting such assignment 13.1
13 SA 800 Consideration when planning and performing such audit 13.2
Application of some SAs in audit of SPFS may require special
13 SA 800 consideration by auditor 13.2
13 SA 800 Description of applicable FRF 13.2
Alerting readers that financial statements are prepared as per special
13 SA 800 purpose framework 13.3
13 SA 800 Restriction on distribution or use 13.3

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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
13 SA 805 Application of SAs 13.4
13 SA 805 Acceptability of FRF 13.5
13 SA 805 Consideration when planning and performing audit 13.5
13 SA 805 Form of opinion 13.6
13 SA 805 Forming an opinion and reporting consideration 13.6
Other matter Para -> referring to modification/EOM/OM para in complete
13 SA 805 set FS 13.7
13 SA 810 Engagement acceptance 13.9
13 SA 810 Before accepting engagement to report on summary FS, auditor shall 13.9
13 SA 810 Nature of procedures to be performed by auditor 13.10
13 SA 810 Form of opinion 13.10
13 SA 810 Auditor report on summary FS 13.11
13 SA 810 Date of audit report 13.12
Modifications to opinion, EOM/OM Para/ MURG/KAM/Other info in A/R on
13 SA 810 audited FS 13.12
13 SA 810 Modified opinion on summary FS 13.12
Restriction on distribution or use or alerting readers to the basis of
13 SA 810 accounting 13.12
13 SA 810 Comparatives 13.13
13 SA 810 Unaudited supplementary information presented with summary FS 13.13
13 SA 810 Other info in documents containing summary FS 13.13
13 SA 810 Auditor association 13.13
Timing of work and events subsequent to date of audit report on audited
13 SA 810 FS 13.14
14 Intro What are agreed upon procedures 14.1
14 SRS 4400 Objective 14.1
14 SRS 4400 Audit vs agreed upon procedures 14.2
14 SRS 4400 Terms of engagement 14.2
14 SRS 4400 Procedures 14.2
14 SRS 4400 Reporting 14.2
14 SRS 4410 Compilation engagement 14.4
14 SRS 4410 Engagement acceptance and continuance 14.4
14 SRS 4410 Performing the engagement 14.4
14 SRS 4410 Practitioner's report 14.5
14 SRS 4410 Engagement level quality control 14.6
14 SRS 4410 Documentation 14.6
15 Intro What is review 15.1
15 SRE 2400 Objectives 15.1
15 SRE 2400 Compliance with ethical requirements and engagement level quality control 15.2
15 SRE 2400 Preconditions for accepting a review engagement 15.2
15 SRE 2400 Agreeing to terms of engagement 15.3
Overview of performing review engagement after acceptance as per SRE
15 SRE 2400 2400 15.3
15 SRE 2400 Procedures to address specific circumstances 15.6
Additional procedures When practitioner becomes aware that FS maybe
15 SRE 2400 material misstated 15.7
15 SRE 2400 Effect of subsequent events 15.7
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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
15 SRE 2400 Written representations 15.8
15 SRE 2400 Evaluating evidence obtained from procedures perform 15.8
15 SRE 2400 Forming conclusion on FS 15.9
15 SRE 2400 FS Materially misstated 15.10
15 SRE 2400 Inability to obtain SAAE 15.11
15 SRE 2400 Practitioner's report 15.12
15 SRE 2400 EOM & OM Para in practitioner's report 15.13
15 SRE 2400 Documentation 15.13
15 SRE 2400 Audit vs review 15.14
15 SRE 2410 Understanding Entity and its environment including its internal controls 15.15
15 SRE 2410 Inquiries analytical and other review procedures 15.15
15 SRE 2410 Subsequent events 15.17
15 SRE 2410 Going concern 15.17
15 SRE 2410 Doubt about accounting treatment 15.17
15 SRE 2410 Evaluation of misstatements 15.17
15 SRE 2410 Management representation 15.18
15 SRE 2410 Auditor's responsibility for accompanying info 15.18
15 SRE 2410 What if auditor identified material misstatement of fact in other info 15.19
15 SRE 2410 Communication 15.19
15 SRE 2410 Reporting nature, extent and results of review of interim financial info 15.19
15 SRE 2410 Departure from applicable FRF 15.20
15 SRE 2410 Limitation on scope 15.21
15 SRE 2410 Other limitations on scope 15.21
15 SRE 2410 Going concern and significant uncertainties 15.21
15 SRE 2410 Other considerations 15.22
15 SRE 2410 Documentation 15.22
16 Intro Standards on assurances engagement 16.1
16 SAE 3400 What is prospective financial information forecast and projection 16.1
16 SAE 3400 Responsibility of preparation and presentation of PFI 16.2
16 SAE 3400 Can professional accountants be associated with PFI? 16.2
16 SAE 3400 Duties of member examining PFI 16.2
16 SAE 3400 Nature of assurance regarding PFI 16.3
16 SAE 3400 Precautions to be taken by auditor before accepting such engg 16.3
16 SAE 3400 Examination procedures 16.3
16 SAE 3400 Presentation and disclosure 16.3
16 SAE 3400 Report on examination of PFI 16.4
16 SAE 3400 Documentation 16.5
16 SAE 3402 Scope of SAE 3402 16.6
16 SAE 3402 Objectives of service auditor 16.6
16 SAE 3402 Type 1 vs type 2 report 16.6
16 SAE 3402 How such an engagement is proceeded with 16.7
16 SAE 3402 Reporting 16.8
16 SAE 3402 Documentation 16.10

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Ch. no. Main topic Sub topics Pg no.
16 SAE 3420 What is pro forma financial information (PFFI) 16.11
16 SAE 3420 Objectives 16.11
16 SAE 3420 Compilation of PFFI 16.11
16 SAE 3420 Nature of practitioner’s responsibility 16.12
16 SAE 3420 Steps involved in such an engagement 16.12
16 SAE 3420 Written representations 16.13
16 SAE 3420 Opinion 16.13
16 SAE 3420 Emphasis of matter para 16.14
16 SAE 3420 Preparing assurance report 16.14
17 Digital auditing Key features of Digital audit 17.1
17 Digital auditing Advantages of digital audit 17.1
17 Digital auditing Consideration and challenges of digital audit 17.1
17 Digital auditing Key features or advantages of auditing digitality 17.2
17 Digital auditing Considerations in auditing digitally 17.2
17 Digital auditing Understand the IT environment 17.3
17 Digital auditing Key areas for an auditor to understand I.T environment 17.3
17 Digital auditing 5 IT dependencies 17.4
Overview of control objectives and control for each area of general IT
17 Digital auditing controls 17.4
17 Digital auditing Cyber attacks 17.5
17 Digital auditing Stages of cyber risk 17.7
17 Digital auditing Cyber security framework 17.8
17 Digital auditing Control consideration for cyber risk 17.10
17 Digital auditing Remote audit 17.10
17 Digital auditing Advantages and disadvantages of remote audit 17.11
17 Digital auditing Emerging technologies in audit: ACL, Alteryx, powerBI, CaseWare 17.12
Automated tools in audit: Internet of things, artificial intelligence, block 17.14-
17 Digital auditing chain, NFT, RPA 16
17 Digital auditing Control considerations or objectives of auditing digitally 17.17
17 Digital auditing Technology risk 17.18
17 Digital auditing Key steps for auditors in changing technology environment 17.18
17 Digital auditing Next generation audit 17.19
Case scenarios to illustrate potential application of metaverse in financial
17 Digital auditing domain 17.20
18 Emerging areas What is sustainability reporting and its benefits 18.1
18 Emerging areas Three pillars constitute ESG 18.1
18 Emerging areas Integrated reporting 18.1
18 Emerging areas 9 principles of BRSR 18.3
18 Emerging areas Principle 1: ethics, transparency and accountability 18.3
18 Emerging areas Principle 2: Safe and sustainable goals and service 18.3
Principle 3: Promote wellbeing of all employees including those in value
18 Emerging areas chain 18.3
18 Emerging areas Principle 4: Respect for stakeholders’ interest and responsiveness 18.4
18 Emerging areas Principle 5: Respect and promote human rights 18.4
18 Emerging areas Principle 6: Protection and restoration of environment 18.4

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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
18 Emerging areas Principle 7: Influence on public and regulatory policy 18.5
18 Emerging areas Principle 8: Promote inclusive growth and equitable development 18.5
18 Emerging areas Principle 9: Provide value to consumers in a responsible manner 18.5
18 Emerging areas Methodology to provide assurance on BRSR 18.6
18 Emerging areas Role of auditor- consideration of climate related risks in audit of FS 18.6
19 CARO 2020 Applicability 19.1
Clause (i) Proper records of PPE/Intangibles+ Physical verification+ title
19 CARO 2020 deeds +revaluation +benaami 19.1
19 CARO 2020 Clause (ii) Inventory: physical verification+ working capital none 19.2
19 CARO 2020 Clause (iii) loans, investment, guarantee, security 19.2
19 CARO 2020 Clause (iv) Sec 185,186 19.3
19 CARO 2020 Clause (v) Deposits 19.3
19 CARO 2020 Clause (vi) Cost records 19.3
19 CARO 2020 Clause (vii) Statutory dues 19.3
19 CARO 2020 Clause (viii) Income disclosure 19.4
19 CARO 2020 Clause (ix) Repayment of loans 19.4
19 CARO 2020 Clause (x) (a) IPO/FPO Reporting 19.4
19 CARO 2020 Clause (x) (b) Preferential allotment/private placement 19.5
19 CARO 2020 Clause (xi) Fraud 19.5
19 CARO 2020 Clause (xii) Nidhi company 19.5
19 CARO 2020 Clause (xiii) Related parties 19.5
19 CARO 2020 Clause (xiv) Internal audit 19.5
19 CARO 2020 Clause (xv) Non cash transactions 19.5
19 CARO 2020 Clause (xvi) RBI 19.5
19 CARO 2020 Clause (xvii) Cash losses 19.6
19 CARO 2020 Clause (xviii) Resignation by statutory auditors 19.6
19 CARO 2020 Clause (xix) Going concern 19.6
19 CARO 2020 Clause (xx) CSR reporting 19.6
19 CARO 2020 Clause (xxi) Qualification in CFS 19.6
19 Company audit Sec 143(1) Duty to inquire on certain matters 19.7
19 Company audit Sec 143(3) Due to report 19.7
19 Company audit Sec 145 Duty to sign audit report 19.8
19 Company audit Sec 143(12) Reports on frauds 19.8
20 SQC-1 Consideration for upholding quality of firm 20.1
20 SQC-1 Monitoring 20.1
20 SQC-1 Peer review 20.1
20 SQC-1 Quality review board 20.2
20 SQC-1 National financial reporting authority (NFRA) 20.2
20 SA 240 What are fraud risk factors 20.3
20 SA 240 Examples of fraud risk factors 20.3
Inadequate IC over assets may increase susceptibility of misappropriation
20 SA 240 of those assets 20.6
20 SA 240 Responses to assessed ROMM due to fraud at FS level 20.6
20 SA 240 Written representation 20.6

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CA Final Audit Notes (Sep/June’23 Edition) Index
Ch. no. Main topic Sub topics Pg no.
Circumstances in which auditor required to include additional information in
20 SA 260 auditors report for which communication with TCWG required 20.7
20 SA 402 Using type 1 or type 2 report to support user auditors understanding of SO 20.7
20 SA 402 Test of control 20.7
Using type 2 report as evidence that controls at SO are operating
20 SA 402 effectively 20.8
20 SA 501 Matters relevant in planning attendance at physical inventory counting 20.8

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