Nepal Standards on Auditing - 2024
In accordance with the decision of 324th Council meeting dated 29th April 2024, the following Nepal Standards on Auditing-2024 (NSA-2024) have been pronounced based on the 2021 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Service Pronouncements. These standards will be applicable as Voluntary Compliance and Mandatory Compliance from date as stated below:
Nepal Standards on Auditing – 2024 and Effective Dates
Volume - I of the Handbook
|
S. N. |
NSA No |
Standards |
Effective for Audits of Financial Statement for the Periods Beginning on: |
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|
Voluntary Compliance |
Mandatory Compliance |
|
|||
|
1 |
|
Structure of Pronouncements Issued by the Auditing Standards Board |
Not Applicable |
Not Applicable |
|
|
2 |
|
Preface to the Nepal Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements |
Not Applicable |
Not Applicable |
|
|
3 |
|
Glossary of Terms |
Not Applicable |
Not Applicable |
|
|
NEPAL STANDARDS ON QUALITY CONTROL |
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|
4 |
NSQC 1 |
Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements (Note: It will be repealed once NSQM - 1 & 2 become mandatory) |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
AUDITS OF HISTORICAL FINANCIAL INFORMATION |
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|
200-299 General Principles and Responsibilities |
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|
5 |
NSA 200 |
Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Nepal Standards on Auditing |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
6 |
NSA 210 |
Agreeing the Terms of Audit Engagements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
7 |
NSA 220 |
Quality Control for an Audit of Financial Statements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
8 |
NSA 230 |
Audit Documentation |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
9 |
NSA 240 |
The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
10 |
NSA 250 (Revised) |
Consideration of Laws and Regulations in an Audit of Financial Statements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
11 |
NSA 260 (Revised) |
Communication with Those Charged with Governance |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
12 |
NSA 265 |
Communicating Deficiencies in Internal Control to Those Charged with Governance and Management |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
300-499 Risk Assessment and Response to Assessed Risks |
|||||
|
13 |
NSA 300 |
Planning an Audit of Financial Statements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
14 |
NSA 315 (Revised) |
Identifying and Assessing the Risks of Material Misstatement |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
15 |
NSA 320 |
Materiality in Planning and Performing an Audit |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
16 |
NSA 330 |
The Auditor’s Responses to Assessed Risks |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
17 |
NSA 402 |
Audit Considerations Relating to an Entity Using a Service Organization |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
18 |
NSA 450 |
Evaluation of Misstatements Identified during the Audit |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
500-599 Audit Evidence |
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|
19 |
NSA 500 |
Audit Evidence |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
20 |
NSA 501 |
Audit Evidence – Specific Considerations for Selected Items |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
21 |
NSA 505 |
External Confirmations |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
22 |
NSA 510 |
Initial Audit Engagements—Opening Balances |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
23 |
NSA 520 |
Analytical Procedures |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
24 |
NSA 530 |
Audit Sampling |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
25 |
NSA 540 (Revised) |
Auditing Accounting Estimates and Related Disclosures |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
26 |
NSA 550 |
Related Parties |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
27 |
NSA 560 |
Subsequent Events |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
28 |
NSA 570 (Revised) |
Going Concern |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
29 |
NSA 580 |
Written Representations |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
600-699 Using the Work of Others |
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|
30 |
NSA 600 |
Special considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
31 |
NSA 610 (Revised) |
Using the work of Internal Auditors |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
32 |
NSA 620 |
Using the work of an Auditor's Expert |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
700-799 Audit Conclusions and Reporting |
|||||
|
33 |
NSA 700 (Revised) |
Forming an Opinion and Reporting on Financial Statements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
34 |
NSA 701 |
Communicating Key Audit Matters in the Independent Auditor’s Report |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
35 |
NSA 705 (Revised) |
Modifications to the Opinion in the Independent Auditor's Report |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
36 |
NSA 706 (Revised) |
Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
37 |
NSA 710 |
Comparative Information – Corresponding Figures and Comparative Financial Statements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
38 |
NSA 720 (Revised) |
The Auditor’s Responsibilities Relating to Other Information |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
800-899 Specialized Areas |
|||||
|
39 |
NSA 800 (Revised) |
Special Considerations – Audit of Financial Statements Prepared in Accordance with Special Purpose Frameworks |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
40 |
NSA 805 (Revised) |
Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
|
41 |
NSA 810 (Revised) |
Engagements to Report on Summary Financial Statements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
Nepal Standards on Auditing – 2024 and Effective Dates
Volume - II of the Handbook
|
S. No. |
NSA No |
Standards |
Effective for Audits of Financial Statement for the Periods Beginning on: |
|
|
Voluntary Compliance |
Mandatory Compliance |
|||
|
NEPAL AUDITING PRACTICE NOTES |
||||
|
1 |
NAPN 1000 |
Special Considerations in Auditing Financial Instruments |
Not Applicable |
Not Applicable |
|
AUDITS AND REVIEWS OF HISTORICAL FINANCIAL INFORMATION |
||||
|
2000-2699 Nepal Standards on Review Engagements |
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|
2 |
NSRE 2400 (Revised) |
Engagements to Review Historical Financial Statements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
3 |
NSRE 2410 |
Review of Interim Financial Information Performed by the Independent Auditor of the Entity |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
ASSURANCE ENGAGEMENTS OTHER THAN AUDITS OR REVIEWS OF HISTORICAL FINANCIAL INFORMATION |
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3000-3699 Nepal Standards on Assurance Engagements (NSAEs) |
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3000-3399 Applicable to All Assurance Engagements |
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|
4 |
NSAE 3000 (Revised) |
Assurance Engagements Other than Audits or Reviews of Historical Financial Information |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
3400-3699 Subject Specific Standards |
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|
5 |
NSAE 3400 |
The Examination of Prospective Financial Information (Previously NSA 810) |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
6 |
NSAE 3402 |
Assurance Reports on Controls at a Service Organization |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
7 |
NSAE 3410 |
Assurance Engagements on Greenhouse Gas Statements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
8 |
NSAE 3420 |
Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
RELATED SERVICES |
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4000-4699 Nepal Standards on Related Services (NSRS) |
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|
9 |
NSRS 4400 |
Engagements to Perform Agreed-Upon Procedures Regarding Financial Information (Previously NSA 920) |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
10 |
NSRS 4410 (Revised) |
Compilation Engagements |
1st Shrawan, 2081 |
1st Shrawan, 2082 |
|
AUDIT QUALITY |
||||
|
11 |
|
A Framework for Audit Quality: Key Elements that Create an Environment for Audit Quality |
Not Applicable |
Not Applicable |
|
ASSURANCE FRAMEWORK |
||||
|
12 |
|
Amended Nepal Framework for Assurance Engagements |
Not Applicable |
Not Applicable |
Nepal Standards on Auditing – 2024 and Effective Dates
For Some New and Revised Standards (Included in Volume - I & II of the Handbook)
|
S. N. |
NSA No |
Standards |
Effective for Audits of Financial Statement for the Periods Beginning on: |
|
|
Voluntary Compliance |
Mandatory Compliance |
|||
|
1 |
NSQM 1 |
Quality Management for Firms That Perform Audit or Reviews of Financial Statements, or Other Assurance or Related Services Engagements |
1st Shrawan, 2081 |
1st Shrawan, 2083 |
|
2 |
NSQM 2 |
Engagement Quality Reviews |
1st Shrawan, 2081 |
1st Shrawan, 2083 |
|
3 |
NSA 220 (Revised) |
Quality Management for an Audit of Financial Statements |
1st Shrawan, 2081 |
1st Shrawan, 2083 |
|
4 |
|
Confirming Amendments to Nepal Standards on Auditing (NSA) and Related Material Arising from the Quality Management Standards |
Not Applicable |
Not Applicable |
|
5 |
NSA 600 (Revised) |
Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) |
1st Shrawan, 2081 |
1st Shrawan, 2083 |
|
6 |
|
Conforming and Consequential Amendments Arising from Proposed NSA 600 (Revised) |
Not Applicable |
Not Applicable |
|
7 |
NSRS 4400 (Revised) |
Agreed-upon Procedures Engagements |
1st Shrawan, 2081 |
1st Shrawan, 2083 |
|
8 |
|
Conforming and Consequential Amendments to the AuSB’s Other Standards as a Result of the New and Revised Quality Management Standards |
Not Applicable |
Not Applicable |
As per the decision of 224th Council meeting, the following Nepal Standards on Auditing revised and drafted based on IAASB hand book 2016 edition, are applicable voluntarily from 1st Shrawan 2075 & mandatory from 1st Shrawan 2076 except for NSA 701 - Communicating Key Audit Matters in the Independent Auditor's Report.
Nepal standards on Auditing
(Based on IAASB Hand Book 2016 Edition)
LIST OF STANDARDS
|
S.No. |
NSA No. |
Standards |
|
NEPAL STANDARDS ON QUALITY CONTROL(NSQCs) |
||
|
1 |
NSQC1 |
Nepal Standard on Quality Control (NSQC) 1 : Quality Control For Firms that Perform Audits and Reviews Of Financial Statements, and Other Assurance and Related Services Engagements |
|
AUDITS OF HISTORICAL FINANCIAL INFORMATION |
||
|
200-299 GENERAL PRINCIPLES AND RESPONSIBILITIES |
||
|
1 |
NSA 200 |
Overall Objective of the Independent Auditor and the conduct of an Audit in Accordance with Nepal Standards on Auditing |
|
2 |
NSA 210 |
Agreeing the Terms of Audit Engagements |
|
3 |
NSA 220 |
Quality Control for an Audits of Financial Statements |
|
4 |
NSA 230 |
Audit Documentation |
|
5 |
NSA 240 |
The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements |
|
6 |
NSA 250 |
Consideration of Laws and Regulations in an Audit of Financial Statements |
|
7 |
NSA 260 (Revised) |
Communication with Those Charged with Governance |
|
8 |
NSA 265 |
Communicating Deficiencies in Internal Control to Those Charged with Governance and Management |
|
300-499 RISK ASSESSMENT AND RESPONSE TO ASSESSED RISKS |
||
|
9 |
NSA 300 |
Planning an Audit of financial statements |
|
10 |
NSA 315(Revised) |
Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment |
|
11 |
NSA 320 |
Materiality in Planning and Performing an Audit |
|
12 |
NSA 330 |
The Auditor’s Responses to Assessed Risks |
|
13 |
NSA 402 |
Audit Considerations Relating to an Entity Using a Service Organization |
|
14 |
NSA 450 |
Evaluation of Misstatements Identified during the Audit |
|
500-599 AUDIT EVIDENCE |
||
|
15 |
NSA 500 |
Audit Evidence |
|
16 |
NSA 501 |
Audit Evidence-Specific Considerations for Selected Items |
|
17 |
NSA 505 |
External Confirmations |
|
18 |
NSA 510 |
Initial Audit Engagements—Opening Balances |
|
19 |
NSA 520 |
Analytical Procedures |
|
20 |
NSA 530 |
Audit Sampling |
|
21 |
NSA 540 |
Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures |
|
22 |
NSA 550 |
Related Parties |
|
23 |
NSA 560 |
Subsequent Events |
|
24 |
NSA 570 (Revised) |
Going Concern |
|
25 |
NSA 580 |
Written Representations |
|
600-699 USING THE WORK OF OTHERS |
||
|
26 |
NSA 600 |
Special considerations-Audit of Group Financial statements (including the work of component Auditors) |
|
27 |
NSA 610(Revised) |
Using the work of Internal Auditors |
|
28 |
NSA 620 |
Using the work of an Auditors Expert |
|
700-799 AUDIT CONCLUSIONS & REPORTING |
||
|
29 |
NSA 700 (Revised) |
Forming an opinion and Reporting on financial statements |
|
30 |
NSA 701 |
Communicating Key Audit Matters in the Independent Auditors Report |
|
31 |
NSA 705 (Revised) |
Modifications to the opinion in the Independent Auditors report |
|
32 |
NSA 706 (Revised) |
Emphasis of Matter Paragraphs and other Matter Paragraphs in the Independent Auditors Report |
|
33 |
NSA 710 |
comparative information-corresponding Figures and comparative Financial Statements |
|
34 |
NSA 720 (Revised) |
The auditor's responsibilities relating to Other information in Documents Containing Audited Financial statements. |
|
800-899 SPECIALIZED AREAS |
||
|
35 |
NSA 800 (Revised) |
special Considerations-Audit of financial statements Prepared in accordance with special Purpose Frame works |
|
36 |
NSA 805 (Revised) |
special Considerations-Audits of Single Financial statements and Specific Elements, Accounts or Items of a Financial statements |
|
37 |
NSA 810 (Revised) |
Engagements to Report on Summary of Financial Statements |
|
NEPAL AUDITING PRACTICE NOTES |
||
|
38 |
NAPN 1000 |
Special considerations in Auditing Financial Instruments |
|
AUDITS AND REVIEW OF HISTORICAL FINANCIAL INFORMATION |
||
|
2000-2699 NEPAL STANDARDS ON REVIEW ENGAGEMENTS(NSREs) |
||
|
39 |
NSRE 2400 |
Engagement to Review Financial Statement |
|
40 |
NSRE 2410 |
Review of Interim Financial Information Performed by the Independent Auditor of the Entity |
|
ASSURANCE ENGAGEMENTS OTHER THAN AUDITS OR REVIEWS OF HISTORICAL FINANCIAL INFORMATION |
||
|
3000-3699 NEPAL STANDARDS ON ASSURANCE ENGAGEMENTS (NSAEs) |
||
|
3000-3399 APPLICABLE TO ALL ASSURANCE ENGAGEMENTS |
||
|
41 |
NSAE 3000 |
Assurance Engagements Other than Audits or Reviews of Historical Financial Information |
|
3400-3699 SUBEJECT SPECIFIC STANDARDS |
||
|
42 |
NSAE 3400 |
The Examination of Prospective Financial Information |
|
43 |
NSAE 3402 |
Assurance Reports on Controls at a Service Organization |
|
44 |
NSAE 3410 |
Assurance Engagements on Greenhouse Gas Statements |
|
45 |
NSAE 3420 |
Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus |
|
RELATED SERVICES |
||
|
4000-4699 NEPAL STANDARDS ON RELATED SERVICES (NSRSs) |
||
|
46 |
NSRS 4400 |
Engagements to Perform Agreed-Upon Procedures Regarding Financial Information |
|
47 |
NSRSs |
Compilation engagements |
|
48 |
AUDIT QUALITY |
A Framework for Audit Quality: Key Elements that Create an Environment for Audit Quality |
|
49 |
ASSURANCE FRAMEWORK |
Amened Nepal Framework for Assurance Engagements |