Material non-compliance with laws and regulations and how to respond.
To obtain sufficient appropriate audit evidence regarding compliance with laws and regulations generally recognised to have a direct effect on the determination of material amounts and disclosures, and to perform specified audit procedures on other laws and regulations.
SA 250 sits in the Risk Assessment phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 250 into practice — built from the ICAI working-paper set, free to download.
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SA 250 — Consideration of Laws and Regulations — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Material non-compliance with laws and regulations and how to respond. To obtain sufficient appropriate audit evidence regarding compliance with laws and regulations generally recognised to have a direct effect on the determination of material amounts and disclosures, and to perform specified audit procedures on other laws and regulations.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 250 in the risk assessment phase, that means evidencing: Understanding of the regulatory framework applicable to the entity; Procedures to identify instances of non-compliance with laws affecting financial reporting; Inquiries of management about compliance with laws and regulations.
