Correct Answer - Option 3 : SA 200
SA 200 is one of the Standards on Auditing (SAs) that deals with the Overall Objectives of the Independent Auditor and the Conduct of an Audit of Financial Statements in accordance with Standards on Auditing.
- SA 200 establishes the independent auditor’s overall responsibilities when conducting an audit of financial statements in accordance with SAs.
- The Standard explains the nature and scope of an audit designed to enable the independent auditor to meet those objectives.
- The Standard also explains the scope, authority, and structure of the SAs, and includes requirements establishing the general responsibilities of the independent auditor applicable in all audits, including the obligation to comply with the SAs.
- The Standard has to be adapted as necessary in the circumstances when applied to audits of other historical financial information.
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SA 500 Audit Evidence explains what constitutes audit evidence in an audit of financial statements, and deals with the auditor’s responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion.
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SA 300 deals with the auditor’s responsibility towards planning for an audit of financial statements and its context is focused more on a recurring audit.
- SA 400 is not a Standards on Auditing (SAs).