Page 15 - CA Inter Audit PARAM

CA Ravi Taori
QNO— Deviation from SAs New Course – (SM25)
SAINTRO.30 Bhaskar CNO - SAINTRO.090
CA. P Babu is conducting audit of financial statements of Quick Buy Private Limited. He was not able
to obtain external confirmations from certain debtors due to practical difficulties and peculiar
circumstances. However, such a procedure is mandated under one of Standards on Auditing.

Unable to obtain external confirmations from these debtors, he relied upon sale details to these
parties, e-invoices, e-way bills and also traced payments from these parties in bank accounts of the
company. He was reasonably satisfied with audit evidence obtained. Is there any other reporting
duty cast upon him relating to not following a mandated procedure in one of Standards on
Auditing?
Answer Duties in relation to Engagement and Quality Control Standards
Standards Adherence: Professional accountants must ensure compliance with Standards in their
engagements. This includes following specified procedures unless they are ineffective in certain situations,
Documentation: In cases where standard procedures are not applicable, alternative procedures should be
documented, explaining how they achieve the intended purpose. Reasons for any departure from
Standards must also be recorded.
Reporting: Accountants' reports should highlight any deviations from Standards. However, mere disclosure
in the report does not exempt them from compliance with the applicable Standards.

Hence, CA P Babu must document the alternative procedures performed i.e. verifying sales details to the
parties, e-invoices, e-way bills and traced payments for these parties in the company’s bank statements
and document the reason from departing from the requirement of obtaining external confirmation from
the debtors.

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