SA200Revised OverallObjectivesoftheIndependentAuditorand TheConductofanAuditinAccordancewithSA 1. ScopeofthisSA: ThisStandardonAuditing(SA)establishestheindependentauditorsoverallresponsibilitieswhen conductinganauditofFSinaccordancewithSAs.Specifically,itsetsouttheoverallobjectivesofthe independentauditor,andexplainsthenatureandscopeofanauditdesignedtoenablethe independentauditortomeetthose. 2. OverallObjectivesoftheAuditor: Inconductinganauditoffinancialstatements,theoverallobjectivesoftheauditorare (a)ToobtainreasonableassuranceaboutwhethertheFSasawholearefreefrommaterial misstatement,and (b)Toreportonthefinancialstatements,andcommunicateasrequiredbytheSAs,inaccordance withtheauditorsfindings. 3.

. Definitions (a) ApplicableFRF:TheFRFadoptedbymgtand,whereappropriate,TCWGinthepreparationand presentationoftheFSthatisacceptableinviewofthenatureoftheentityandtheobjectiveofthe financialstatements,orthatisrequiredbylaworregulation. (b) AuditriskTheriskthattheauditorexpressesaninappropriateauditopinionwhentheFSare materiallymisstated.Auditriskisafunctionoftherisksofmaterialmisstatementanddetectionrisk. (c) DetectionriskTheriskthattheproceduresperformedbytheauditortoreduceauditrisktoan acceptablylowlevelwillnotdetectamisstatementthatexistsandthatcouldbematerial,either individuallyorwhenaggregatedwithothermisstatements. (d) FinancialStatement(FS)Astructuredrepresentationofhistoricalfinancialinformation,including relatednotes,intendedtocommunicateanentityseconomicresourcesorobligationsatapointin timeorthechangesthereinforaperiodoftimeinaccordancewithaFRF. (e) HistoricalfinancialinformationInformationexpressedinfinancialtermsinrelationtoaparticular entity,derivedprimarilyfromthatentitysaccountingsystem,abouteconomiceventsoccurringin pasttimeperiodsorabouteconomicconditionsorcircumstancesatpointsintimeinthepast. (f) Premise,relatingtotheresponsibilitiesofmgtand,whereappropriate,TCWG,onwhichanauditis conducted:Thatmgtand,whereappropriate,TCWGhavethefollowingresponsibilitiesthatare fundamentaltotheconductofanauditinaccordancewithSAs. (i) ForthepreparationandpresentationoftheFSinaccordancewiththeapplicableFRF; (ii) Toprovidetheauditorwith: a.Allinformation,suchasrecordsanddocumentation,andothermattersthatarerelevantto thepreparationandpresentationofthefinancialstatements; b.Anyadditionalinformationthattheauditormayrequestfrommgtand,whereappropriate, TCWG;and c.Unrestrictedaccesstothosewithintheentityfromwhomtheauditordeterminesitnecessary toobtainauditevidence. (g) ProfessionaljudgmentTheapplicationofrelevanttraining,knowledgeandexperience,withinthe contextprovidedbyauditing,accountingandethicalstandards,inmakinginformeddecisionsabout thecoursesofactionthatareappropriateinthecircumstancesoftheauditengagement. (h)ProfessionalskepticismAnattitudethatincludesaquestioningmind,beingalerttoconditions whichmayindicatepossiblemisstatementduetoerrororfraud,andacriticalassessmentofaudit

 evidence. (i)ReasonableassuranceInthecontextofanauditoffinancialstatements,ahigh,butnotabsolute, levelofassurance. (j)RiskofmaterialmisstatementTheriskthattheFSaremateriallymisstatedpriortoaudit.This consistsoftwocomponents,describedasfollowsattheassertionlevel: (i)InherentriskThesusceptibilityofanassertionaboutaclassoftransaction,accountbalanceor disclosuretoamisstatementthatcouldbematerial,eitherindividuallyorwhenaggregatedwith othermisstatements,beforeconsiderationofanyrelatedcontrols. (ii)ControlriskTheriskthatamisstatementthatcouldoccurinanassertionaboutaclassof transaction,accountbalanceordisclosureandthatcouldbematerial,eitherindividuallyor whenaggregatedwithothermisstatements,willnotbeprevented,ordetectedandcorrected,on atimelybasisbytheentitysinternalcontrol. 4. Requirements i) EthicalRequirementsRelatingtoanAuditofFS Theauditorshallcomplywithrelevantethicalrequirements,includingthosepertainingto independence,relatingtofinancialstatementauditengagements.Relevantethicalrequirements ordinarilycomprisetheCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia. TheCodeestablishesthefollowingasthefundamentalprinciplesofprofessionalethicsrelevant totheauditor (a) Integrity; (b) Objectivity; (c) Independence (d) Professionalcompetenceandduecare (e) Confidentiality;and (f) Professionalbehavior. ii) ProfessionalSkepticism (a) Theauditorshallplanandperformanauditwithprofessionalskepticismrecognisingthat circumstancesmayexistthatcausethefinancialstatementstobemateriallymisstated. (b) Professionalskepticismincludesbeingalertto,forexample Auditevidencethatcontradictsotherauditevidenceobtained. Conditionsthatmayindicatepossiblefraud. iii) ProfessionalJudgment Theauditorshallexerciseprofessionaljudgmentinplanningandperforminganauditoffinancial statements.Professionaljudgmentisessentialtotheproperconductofanaudit.Professional judgmentisnecessaryinparticularregardingdecisionsabout: Materialityandauditrisk. Thenature,timing,andextentofauditproceduresusedtomeettherequirementsoftheSAs andgatherauditevidence. Evaluatingwhethersufficientappropriateauditevidencehasbeenobtained. iv) SufficientAppropriateAuditEvidenceandAuditRisk Toobtainreasonableassurance,theauditorshallobtainsufficientappropriateauditevidenceto reduceauditrisktoanacceptablylowlevelandtherebyenabletheauditortodrawreasonable conclusionsonwhichtobasetheauditorsopinion. a) Auditevidenceisnecessarytosupporttheauditorsopinionandreport.Itiscumulativein natureandisprimarilyobtainedfromauditproceduresperformedduringthecourseofthe audit.

 b) Thesufficiencyandappropriatenessofauditevidenceareinterrelated.Sufficiencyisthe measureofthequantityofauditevidence.Thequantityofauditevidenceneededisaffected bytheauditorsassessmentoftherisksofmisstatement(thehighertheassessedrisks,the moreauditevidenceislikelytoberequired)andalsobythequalityofsuchauditevidence (thehigherthequality,thelessmayberequired).Obtainingmoreauditevidence,however, maynotcompensateforitspoorquality. c) Appropriatenessisthemeasureofthequalityofauditevidence;thatis,itsrelevanceandits reliabilityinprovidingsupportfortheconclusionsonwhichtheauditorsopinionisbased. Thereliabilityofevidenceisinfluencedbyitssourceandbyitsnature,andisdependenton theindividualcircumstancesunderwhichitisobtained. d) Whethersufficientappropriateauditevidencehasbeenobtainedtoreduceauditrisktoan acceptablylowlevel,andtherebyenabletheauditortodrawreasonableconclusionsonwhich tobasetheauditorsopinion,isamatterofprofessionaljudgment. v) ConductOfanAuditinaccordancewithSAs 1. ComplyingwithSAsRelevanttotheAudit a. TheauditorshallcomplywithallSAsrelevanttotheaudit.AnSAisrelevanttotheaudit whentheSAisineffectandthecircumstancesaddressedbytheSAexist. b. TheauditorshallhaveanunderstandingoftheentiretextofanSA,includingits applicationandotherexplanatorymaterial,tounderstanditsobjectivesandtoapplyits requirementsproperly. c. TheauditorshallnotrepresentcompliancewithSAsintheauditorsreportunlessthe auditorhascompliedwiththerequirementsofthisSAandallotherSAsrelevanttothe audit. 2. ObjectivesStatedinIndividuaISAs Toachievetheoverallobjectivesoftheauditor,theauditorshallusetheObjectivesstatedin relevantSAsinplanningandperformingtheaudit,havingregardtotheinterrelationships amongtheSAs, (a) DeterminewhetheranyauditproceduresinadditiontothoserequiredbytheSAsare necessaryinpursuanceoftheobjectivesstatedintheSAs;and (b) Evaluatewhethersufficientappropriateauditevidencehasbeenobtained. 3. ComplyingwithRelevantRequirements TheauditorshallcomplywitheachrequirementofanSAunless,inthecircumstancesofthe audit: (a) TheentireSAisnotrelevant;or (b) Therequirementisnotrelevantbecauseitisconditionalandtheconditiondoesnot exist. 4. FailuretoAchieveanObjective IfanobjectiveinarelevantSAcannotbeachieved,theauditorshallevaluatewhetherthis preventstheauditorfromachievingtheoverallobjectivesoftheauditorandtherebyrequires theauditor,inaccordancewiththeSAs,tomodifytheauditorsopinionorwithdrawfrom theengagement.Failuretoachieveanobjectiverepresentsasignificantmatterrequiring documentationinaccordancewithSA230