164+ অডিট শর্তাবলী প্রতিটি CA উচিত জানুন.

Adverse Opinion

An audit opinion stating that the financial statements are materially misstated and do not present a true and fair view. Issued under SA 705 when misstatements are both material and pervasive.

Agreed-Upon Procedures

An engagement where the auditor performs specific procedures agreed upon with the client and reports factual findings without providing an opinion. Governed by SRS 4400.

Analytical Procedures

Evaluations of financial information through analysis of plausible relationships among financial and non-financial data. Used in planning, substantive testing and overall review stages (SA 520).

Arm's Length Price

The price at which a transaction would occur between unrelated parties under comparable circumstances. Central to Transfer Pricing regulations under Sections 92-92F of the Income Tax Act.

Assertion

A representation by management, explicit or implicit, embodied in the financial statements. Categories include existence, completeness, valuation, rights & obligations and presentation & disclosure.

Audit Committee

A committee of the board of directors responsible for overseeing the financial reporting process, audit and internal controls. Mandatory for listed companies under Section 177 of the Companies Act, 2013.

Audit Documentation

The record of audit procedures performed, relevant evidence obtained and conclusions reached (also called working papers). Requirements set out in SA 230.

Audit Evidence

Information used by the auditor to arrive at conclusions on which the audit opinion is based. Includes information from accounting records and other sources (SA 500).

Audit File

One or more folders or storage media containing the documentation for a specific engagement. Must be assembled within 60 days after the date of the auditor's report (SA 230).

Audit Planning

The process of establishing the overall audit strategy and developing an audit plan (SA 300).

Audit Risk

The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. Comprises inherent risk, control risk and detection risk (SA 200).

Audit Sampling

Applying audit procedures to less than 100% of items within a population to draw conclusions about the entire population (SA 530).

Audit Trail

A chronological record that traces financial data from its origin in source documents through to the final financial statements.

Auditor's Report

The formal written communication from the auditor to stakeholders containing the audit opinion. Format prescribed by SA 700/705/706.

Balance Confirmation

Obtaining direct written confirmation from third parties (debtors, creditors, banks) regarding account balances. A key substantive procedure under SA 505.

Bank Reconciliation

A statement reconciling the balance in an entity's bank account as per the bank statement with the balance as per the entity's books.

Benford's Law

A mathematical principle used in data analytics to identify anomalies in large datasets by comparing the frequency distribution of leading digits against expected patterns.

BRSR

Business Responsibility and Sustainability Report, mandatory disclosure framework for the top 1,000 listed companies in India, prescribed by SEBI, covering ESG metrics.

Budget vs Actual Analysis

A comparison of budgeted figures with actual results used as an analytical procedure to identify unusual variances.

Bulk Verification

Testing a large volume of transactions using data analytics or AI tools rather than traditional sampling, enabling 100% population testing.

CARO

Companies Auditor's Report Order, issued by the Central Government requiring auditors to report on specified matters. CARO 2020 is the current version.

Cash Flow Statement

A financial statement showing inflows and outflows of cash and cash equivalents, operating, investing and financing activities (Ind AS 7 / AS 3).

Clause 44AB

The Income Tax Act section that mandates a tax audit for businesses with turnover exceeding specified limits (currently INR 1 crore, or INR 10 crore for digital transactions).

Communication with TCWG

The auditor's obligation to communicate significant audit findings to Those Charged With Governance (SA 260).

Comparative Information

Amounts and disclosures included in the financial statements for one or more prior periods, either as corresponding figures or comparative financial statements (SA 710).

Component Auditor

An auditor who performs work on the financial information of a component for use in the group audit (SA 600).

Concurrent Audit

An audit conducted simultaneously with the transactions being processed, common in banks and financial institutions in India.

Control Environment

The overall attitude, awareness and actions of management and TCWG regarding internal controls (SA 315).

Control Risk

The risk that a misstatement could occur in an assertion and not be prevented or detected on a timely basis by the entity's internal controls.

CRAR

Capital to Risk-Weighted Assets Ratio, a measure of a bank's or NBFC's capital adequacy. Minimum CRAR requirements are prescribed by RBI.

CPC

Central Processing Centre, the Income Tax Department's automated system for processing returns and issuing Section 143(1) intimations.

Data Analytics

The use of data analysis techniques to identify patterns, anomalies and trends in financial data. Increasingly used for journal entry testing and continuous auditing.

Deferred Tax

Tax effect arising from temporary differences between accounting income and taxable income. Recognised as a deferred tax asset or liability under Ind AS 12 / AS 22.

Detection Risk

The risk that the auditor's procedures will not detect a material misstatement. The only component of audit risk directly controlled by the auditor.

Disclaimer of Opinion

Issued when the auditor is unable to obtain sufficient appropriate audit evidence to form an opinion (SA 705).

Due Diligence

An investigation or review of a potential investment, acquisition or business transaction to confirm material facts and assess risks before the deal is concluded.

DIN

Director Identification Number, a unique identification number assigned to every director of a company by the MCA, required under Section 153 of the Companies Act, 2013.

Emphasis of Matter

A paragraph in the auditor's report that draws attention to a matter of fundamental importance to users' understanding (SA 706).

Engagement Letter

A written agreement between the auditor and the client documenting the terms of the engagement, including scope, responsibilities and fee. Required under SA 210.

Engagement Partner

The partner responsible for the audit engagement and its performance, and for the auditor's report issued on behalf of the firm.

EQCR / EQR

Engagement Quality (Control) Review, an objective evaluation of the significant judgments and conclusions of the engagement team. Now termed Engagement Quality Review under SQM 1.

Expected Credit Loss (ECL)

The weighted average of credit losses with the respective risks of default as weights. Required for impairment of financial instruments under Ind AS 109.

External Confirmation

Audit evidence obtained as a direct written response from a third party (SA 505).

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (Ind AS 113).

FCRA

Foreign Contribution Regulation Act, legislation regulating foreign contributions or hospitality by individuals, associations and companies in India.

Financial Statements

A structured representation of the financial position, performance and cash flows of an entity, balance sheet, P&L, cash flow statement, statement of changes in equity and notes.

First-Year Audit

An audit engagement for a new client where the auditor has no prior experience with the entity. Requires additional procedures including review of predecessor auditor's working papers.

Forensic Audit

An investigation-oriented audit examining financial records for evidence of fraud, embezzlement or financial irregularities.

Fraud Risk

The risk that financial statements contain material misstatement due to fraud. The auditor's responsibilities are addressed in SA 240.

Fraud Risk Factors

Events or conditions that indicate incentive, pressure, opportunity or rationalisation for committing fraud.

Going Concern

The assumption that an entity will continue in business for the foreseeable future. The auditor evaluates management's assessment of going concern under SA 570.

Goodwill

An intangible asset arising from a business combination. Tested for impairment annually under Ind AS 36.

Group Audit

An audit of group financial statements that include the financial information of more than one component (SA 600).

GST

India's unified indirect tax. Auditors verify GST compliance including input tax credit matching and return reconciliation.

GSTR-9C

The annual GST reconciliation statement certified by a CA, reconciling figures in GSTR-9 with audited financials.

Horizontal Analysis

An analytical procedure comparing financial data over multiple periods to identify trends and unusual fluctuations.

Hot Review

A review of audit working papers conducted before the audit opinion is issued, typically by the engagement quality reviewer.

ICAI

Institute of Chartered Accountants of India, the statutory body established under the Chartered Accountants Act, 1949, regulating the profession and issuing Standards on Auditing.

IFRS

International Financial Reporting Standards. India's Ind AS are converged with IFRS but with certain carve-outs.

Impairment

A reduction in the recoverable amount of an asset below its carrying amount. Requires recognition of an impairment loss under Ind AS 36.

Ind AS

Indian Accounting Standards, converged with IFRS, mandated for listed companies, large unlisted companies and NBFCs.

Inherent Risk

The susceptibility of an assertion to a misstatement that could be material, before consideration of any related controls.

Internal Audit

An independent, objective assurance and consulting activity. Mandatory for certain companies under Section 138 of the Companies Act.

Internal Controls

The processes designed to provide reasonable assurance regarding the achievement of objectives related to operations, reporting and compliance (SA 315).

IRACP

Income Recognition and Asset Classification Prudential Norms, RBI norms for banks and NBFCs.

ISA

International Standards on Auditing, global auditing standards issued by the IAASB. India's SAs are substantially aligned with ISAs.

ISQM

International Standard on Quality Management, the global framework for audit firm quality management systems.

IT General Controls

Controls over the IT environment, including access controls, change management, operations and program development.

Journal Entry Testing

A substantive procedure examining journal entries for indicators of fraud, particularly management override of controls (SA 240).

Joint Audit

An audit conducted by two or more auditors sharing the audit work. Common in banking and insurance sectors in India.

Key Audit Matters (KAM)

Matters that, in the auditor's professional judgment, were of most significance in the audit. Required for listed companies under SA 701.

KMP

Key Managerial Personnel, senior officials of a company defined under Section 2(51) of the Companies Act, 2013.

KYC/AML

Know Your Customer and Anti-Money Laundering, due diligence processes required by RBI for banks and financial institutions.

Lead Schedule

A summary schedule that brings together balances for a group of related accounts and links to detailed testing schedules.

Ledger Scrutiny

A detailed review of general ledger accounts to identify unusual entries, misclassifications or items requiring further investigation. A common procedure in Indian audit practice.

LFAR

Long Form Audit Report, a detailed report submitted by statutory auditors of banks to the RBI.

Limited Review

A review engagement performed on interim financial results of listed companies, providing limited assurance (SRE 2410).

Listed Company

A company whose securities are listed on a recognised stock exchange, subject to additional reporting under SEBI regulations, CARO and SA 701.

Management Letter

A letter from the auditor to management communicating internal control deficiencies and recommendations.

Management Representation Letter

A written statement by management to the auditor confirming certain matters (SA 580).

Material Misstatement

A misstatement that, individually or in aggregate, could reasonably be expected to influence the economic decisions of users.

Materiality

The threshold above which misstatements are considered significant enough to affect users' decisions (SA 320).

MCA

Ministry of Corporate Affairs, administers the Companies Act, regulates corporate affairs and oversees the NFRA.

Modified Opinion

An audit opinion that is not unmodified, qualified, adverse or disclaimer of opinion (SA 705).

Monetary Unit Sampling (MUS)

A statistical sampling method where the sampling unit is the individual currency unit, also called probability-proportional-to-size sampling.

NAS

Non-Audit Services. Restrictions imposed by the Companies Act and ICAI Code of Ethics to maintain auditor independence.

NBFC

Non-Banking Financial Company, registered with RBI, engaged in loans and advances, acquisition of shares/securities, leasing or hire-purchase.

Net Realizable Value (NRV)

Estimated selling price in the ordinary course of business, less estimated costs of completion and costs to sell (Ind AS 2).

NFRA

India's independent audit regulator established under Section 132 of the Companies Act, 2013.

NPA

Non-Performing Asset, a loan or advance where interest/principal payment is overdue beyond a specified period.

OCI

Other Comprehensive Income, items of income and expense not recognised in profit or loss.

Opening Balance

Account balances at the beginning of the period. In a first-year audit, the auditor must obtain sufficient evidence about opening balances (SA 510).

Other Information

Financial or non-financial information in the annual report other than the financial statements and auditor's report (SA 720).

Other Matter Paragraph

A paragraph in the auditor's report referring to a matter relevant to users' understanding (SA 706).

PAT

Profit After Tax, net income after deducting all expenses including taxes.

PCAOB

Public Company Accounting Oversight Board, the US audit regulator overseeing audits of US public companies.

Peer Review

A review of a CA firm's audit practice by another qualified firm. Mandatory under ICAI's Peer Review framework.

Performance Materiality

The amount set by the auditor at less than materiality to reduce the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality (SA 320).

Physical Verification

The process of physically counting and verifying the existence and condition of tangible assets, including inventory and fixed assets.

PPE

Property, Plant and Equipment, tangible assets held for use in production, supply, rental or administrative purposes (Ind AS 16).

Predecessor Auditor

The auditor previously engaged to audit the same entity. The incoming auditor must communicate with them regarding acceptance.

Principal Auditor

The auditor responsible for reporting on the financial statements when those statements include financial information of components audited by another auditor.

Professional Scepticism

An attitude that includes a questioning mind, alertness to conditions indicating misstatement and a critical assessment of audit evidence (SA 200).

Profit Before Tax (PBT)

The profit of an entity before deducting income tax expense. Often used as a benchmark for materiality in statutory audits.

Provision

A liability of uncertain timing or amount (Ind AS 37).

QC 1000

The quality control standard for firms performing audits and reviews, being replaced by SQM 1 in India.

Qualified Opinion

An opinion issued when misstatements are material but not pervasive (SA 705).

Quality Management

The system of policies, procedures and responsibilities established by an audit firm to ensure consistent audit quality. Governed by SQM 1, SQM 2 and SA 220 (Revised).

Reasonable Assurance

A high but not absolute level of assurance. In an audit engagement, the auditor expresses an opinion providing reasonable assurance.

Reconciliation

The process of comparing two sets of records (e.g., bank statement vs cash book, GSTR-2A vs purchase register) to verify agreement and investigate differences.

Related Party

A person or entity related to the reporting entity as defined in Ind AS 24 / AS 18.

Related Party Transactions (RPT)

Transactions between the entity and its related parties. Subject to disclosure and, for listed companies, approval under SEBI LODR and Section 188.

Revenue Recognition

The process of recording revenue. Under Ind AS 115, revenue is recognised when performance obligations are satisfied and control transfers.

Risk Assessment

The process of identifying and assessing the risks of material misstatement through understanding the entity and its environment, including internal controls (SA 315).

Root Cause Analysis

A systematic process for identifying the underlying causes of audit deficiencies or quality incidents. Required under SQM 1.

ROU Asset

Right-of-Use Asset, an asset representing a lessee's right to use an underlying asset for the lease term (Ind AS 116).

SA 200

Overall Objectives, the foundational auditing standard setting out the overall objectives of the independent auditor.

SA 230

Audit Documentation, the auditor's responsibility to prepare sufficient and appropriate documentation.

SA 240

Fraud, the auditor's responsibilities relating to fraud in an audit of financial statements.

SA 260

Communication with TCWG, communicating relevant audit matters to Those Charged With Governance.

SA 315

Risk Assessment, identifying and assessing the risks of material misstatement.

SA 320

Materiality, concepts of materiality for the financial statements as a whole and performance materiality.

SA 330

Responses to Risks, designing and implementing responses to assessed risks of material misstatement.

SA 500

Audit Evidence, designing and performing audit procedures to obtain sufficient appropriate audit evidence.

SA 505

External Confirmations, using external confirmation procedures to obtain audit evidence.

SA 520

Analytical Procedures, using analytical procedures as substantive procedures and near the end of the audit.

SA 530

Audit Sampling, using audit sampling and other means of selecting items for testing.

SA 570

Going Concern, the auditor's responsibilities relating to going concern.

SA 580

Written Representations, obtaining written representations from management.

SA 600

Group Audits, special considerations applicable to group audits.

SA 700

Forming an Opinion, forming an opinion and reporting on the financial statements.

SA 701

Key Audit Matters, communicating KAMs in the auditor's report for listed entities.

SA 705

Modifications, modifications to the opinion in the independent auditor's report.

SA 706

Emphasis of Matter, emphasis of matter and other matter paragraphs in the auditor's report.

SA 720

Other Information, the auditor's responsibilities relating to other information.

Section 44AB

The provision of the Income Tax Act, 1961 mandating tax audit for businesses and professionals exceeding the prescribed threshold.

SEBI LODR

SEBI Listing Obligations and Disclosure Requirements, prescribes disclosure norms and corporate governance for listed companies.

Significant Risk

An identified risk of material misstatement requiring special audit attention and substantive procedures (SA 315).

SQM 1

Standard on Quality Management 1, requiring audit firms to design, implement and operate a system of quality management.

SQM 2

Standard on engagement quality reviews, appointment, eligibility and performance of the reviewer.

Statutory Audit

An audit mandated by law, in India, primarily under Section 143 of the Companies Act, 2013.

Subsequent Events

Events between the date of the financial statements and the date of the auditor's report (SA 560).

Substantive Procedure

An audit procedure designed to detect material misstatements at the assertion level.

Tax Audit

An audit conducted under Section 44AB of the Income Tax Act, 1961, requiring Form 3CA/3CB and 3CD.

TDS

Tax Deducted at Source, a mechanism for collecting income tax at the source of income.

Test of Controls

An audit procedure designed to evaluate the operating effectiveness of controls.

Tolerable Error

A monetary amount set by the auditor in respect of which they seek an appropriate level of assurance (SA 530).

Transfer Pricing

The pricing of transactions between related parties under Sections 92-92F of the Income Tax Act.

Trial Balance

A listing of all general ledger account balances at a point in time.

True and Fair View

The assertion that financial statements present a faithful representation. The objective of a statutory audit in India.

Unmodified Opinion

An audit opinion issued when the financial statements are prepared, in all material respects, in accordance with the applicable framework (SA 700).

Unqualified Opinion

Another term for an unmodified opinion, a clean audit opinion.

Useful Life

The period over which an asset is expected to be available for use. Schedule II of the Companies Act prescribes minimum useful lives.

Valuation

The process of determining the fair value or carrying amount of assets and liabilities.

Vouching

The examination of documentary evidence (vouchers, invoices, receipts) to support transactions recorded in the books.

Vertical Analysis

An analytical procedure expressing each line item as a percentage of a base amount.

Walkthrough

The process of tracing a transaction from its origin through the entity's accounting and internal control systems (SA 315).

Working Papers

Documentation prepared by or obtained by the auditor during the audit engagement (SA 230).

Written Representation

A written statement by management provided to the auditor (SA 580).

Write-Off

The removal of an asset or a portion thereof from the books when it is no longer expected to be recoverable.

XBRL

eXtensible Business Reporting Language, a standardised electronic format for filing financial statements with the MCA and SEBI.

Year-End Closing

The process of finalising accounts at the end of the financial year.

Year-End Procedures

Audit procedures performed at or around the balance sheet date, inventory observation, cash counts, bank confirmations and cut-off testing.

Zero-Based Budgeting

A budgeting method where all expenses must be justified for each new period rather than basing the budget on prior-year figures.