Audit of Financial Statements

Audit of Financial Statements is a structured practitioner's manual that translates Standards on Auditing, the Companies Act 2013, CARO 2020 and Indian Accounting Standards into a single, end-to-end audit methodology. Written from the standpoint of an inspection-aware practising auditor, it positions the statutory audit not as a checklist exercise but as a documented, risk-driven engagement whose quality must be defensible before the National Financial Reporting Authority (NFRA), the Quality Review Board (QRB), the Financial Reporting Review Board (FRRB) and audit committees.

The 5^th Edition reflects the regulatory shift from broad supervisory oversight to detailed practice-oriented guidance—mapping the Audit Quality Maturity Model (AQMM) Version 2 expectations to engagement-level documentation, and operationalising NFRA's audit practice toolkits, structured Risk of Material Misstatement (RoMM) templates and Auditor–Audit Committee Interaction Series circulars into procedures, checklists and working papers.

This book is intended for the following audience:

• Practising Chartered Accountants signing statutory audit reports of corporate and non-corporate entities under the AS framework
• Audit Firm Partners and Engagement Quality Reviewers building inspection-ready audit files under AQMM v2 and the proposed SQM 1/SQM 2 transition
• Engagement Teams, Managers and Articled Assistants seeking structured guidance on risk assessment, response design and documentation
• Audit Committee Members and those charged with governance evaluating auditor work, communication quality and independence
• Internal Auditors, Technical Reviewers, Peer Reviewers and Concurrent Auditors whose work intersects with the statutory audit cycle
• Finance Controllers and CFOs responsible for accounting policy formulation, Schedule III disclosures and audit readiness
• Regulatory and Oversight Personnel reviewing audit documentation, governance communication and reporting compliance