Location:    Nepal

ICAN Issues new Audit Standards

The Institute of Chartered Accountants of Nepal (ICAN) issues a set of audit standards, including revised and new standards. The new and revised standards will be made applicable for all audit works beginning from 16th July 2016.

The new audit standards include:

  • NSA 265 on Communicating Deficiencies in Internal Control to Those Charged with Governance & Management
  • NSA 402 on Audit Considerations Relating to an Entity Using a Service Organization
  • NSA 450 on Evaluating Misstatements Identified during the Audit
  • NSA 501 on Audit Evidence- Specific Considerations for Selected Items
  • NSA 705 on Modifications to the Opinion in the Independent Auditor’s Report
  • NSA 706 on Emphasis of Matter Paragraph and Other Matter Paragraphs in the Independent Auditor’s Report
  • NSA 805 on Special Considerations- Audit of Single Financial Statements and Specific Elements, Accounts or Items of Financial Statements
  • NSA 810 on Engagements to Report on Summary Financial Statement

ICAN has also issued a Guidance Note (NAPN 1000) on “Special Considerations in Auditing Financial Instruments” and added a new set of Nepal Standards on Review Engagements ¬†on ” NSRE 2410 on Review of Interim Financial Information Performed by the Independent Auditor of the Entity”.

For the first time, ICAN has come up with standards on “Assurance Engagements other than Audits or Review of Historical Financial Information”. These include:

  • NSAE 3000 on¬†Assurance Engagements other than Audits or Review of Historical Financial Information
  • NSAE 3400 on The Examination of Prospective Financial Information
  • NSAE 3402 on Assurance Reports on Control at a Service Organization
  • NSAE 3410 on Assurance Reports on Greenhouse Gas Statements
  • NSAE 3420 on Assurance Engagements to Report on the Compilation of Pro Forma Financial Statements included in a Prospectus