FRFW; and b.Obtain audit evidence that the transactions have been appropriately authorised and approved. Related Party Transactions Conducted on Arm’s Length Assertions in FS That Related Party Transactions Were Conducted on Terms Equivalent to Those Prevailing in an Arm’s Length Transaction - Auditor shall obtain SAAE about the assertion.ClearIPCC.in
"Purposefully not formatted"Generally Accepted Accounting Principles in India (AS-4 and Ind AS - 10 requirements) 1.FRFWs (GAAPs) ordinarily identify two types of events: a.Those that provide evidence of conditions that existed at the date of the FS (Commonly referred as ‘Adjusting Events’); b.Those that provide evidence of conditions that arose after the date of the FS (Commonly referred as ‘Non-Adjusting Events’). Author’s NoteAS-4 (Events Occurring After the BS Date)requires adjusting events to be accounted for in the FS and non-adjusting events to be neither accounted nor disclosed in the FS (however, disclosure in approving authority’s report is permitted if the event is significant) Ind-AS-10 (Events After the Reporting Period)requires adjusting events to be adjusted in the FS and non-adjusting events to be disclosed in the FS Under both the standards, Events after the BS Date / Reporting Period refers to events from the date of FS to the date of approval of FS by approving authority (Type A events) Consequently, usually the date of approval of FS and date of Auditor’s Report are same or as near to possible, to avoid mismatch of MGT and auditor’s responsibilities under the accounting and auditing standards respectively. Definitions1.Subsequent Events Events occurring between the date of the FS and the date of the auditor’s report, and facts that become known to the auditor after the date of the auditor’s report.Author’s Note:Thereby Subsequent Events would include: a.Event from the Date of BS to the Date of Approval of the FS (Let’s say, Type A events)b.Event from the Date of Approval of the FS to the Date of Auditor’s Report (Let’s say, Type B events)c.Event from the Date of Auditor’s Report to the Date when FS areIssued (Let’s say, Type C events)d.Event from the Date when FS are Issued to Date of Approval of FS (Let’s say, Type D events)2.Date of Approval of the FS The date on which all the statements that comprise the FS have been prepared and relevant authority have accepted and communicated that they have taken responsibility for those FS. 3.Date the FS are issued The date that the auditor’s report and audited FS are made available to third parties. SA 560 Subsequent EventsClearIPCC.in
"Purposefully not formatted"Auditor’s Responsibilities Auditor is responsible to obtain: a.SAAE for Type A and B Events b.Respond appropriately to Type C and D Events if such events comes to the notice of auditor and to report appropriately.