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| Bangladesh Standard on Audit(BSA-200) |
What is Bangladesh standard on Audit-BSA-200? Describes in details:
Bangladesh Standard on Auditing (BSA) 200, titled "Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing", outlines the fundamental objectives of an auditor and the overall framework for conducting an audit in accordance with the standards set by the relevant auditing framework.
Here are the key points of BSA 200:
1.Objective of the Auditor:
The primary objective of the auditor is to express an opinion on whether the
financial statements are prepared, in all material respects, in accordance with
the applicable financial reporting framework (such as IFRS or Bangladesh
Financial Reporting Standards). This opinion is based on the audit evidence
obtained during the audit process.
2.Conducting the Audit:
The auditor is required to conduct the audit in accordance with the auditing
standards, ensuring that sufficient and appropriate audit evidence is obtained
to form an opinion on the financial statements. The auditor must apply
professional judgment and skepticism throughout the audit process.
3.Ethical Requirements:
The auditor must adhere to ethical requirements, including integrity, objectivity, professional competence, and due care. The auditor must also remain independent from the entity being audited to ensure the audit is conducted impartially and without bias.
4.Responsibility for the Audit:
The auditor is responsible for planning and performing the audit to obtain reasonable assurance that the financial statements are free from material misstatement.
While auditors obtain reasonable assurance through their procedures, absolute assurance is not possible due to inherent limitations in the audit process.
5.Professional Skepticism and
Judgment:
The auditor must exercise professional skepticism throughout the audit, meaning they should maintain a questioning mind and critically assess audit evidence, especially when it contradicts other evidence or when there are indications of fraud or error.
Professional judgment is applied to assess risks of material misstatement, designing audit procedures, and evaluating the results of audit evidence.
6.Audit Evidence:
The auditor needs to obtain sufficient appropriate audit evidence to provide a basis for their opinion on the financial statements. The evidence should be reliable, relevant, and sufficient to support the conclusions drawn.
7.Audit Approach:
The auditor must plan and perform the audit in a manner that ensures compliance with the standards and provides a reasonable basis for the opinion. This includes understanding the entity’s internal control systems and assessing the risks of material misstatement.
8.Responsibility for Internal
Controls:
Although the auditor is required to understand the entity's internal controls to assess risks of material misstatement, the auditor is not responsible for the entity’s internal controls or for detecting all weaknesses or frauds. The primary responsibility for maintaining effective internal control lies with management.
9.Documentation:
The auditor must document the audit procedures performed, the audit evidence obtained, and the conclusions drawn. This documentation provides a record of the audit and is essential for the quality control and review process.
In summary, BSA 200 establishes the fundamental objectives and responsibilities of auditors in conducting audits, emphasizing the importance of ethical behavior, professional skepticism, obtaining sufficient evidence, and exercising professional judgment to form an audit opinion on the financial statements.