Introduction: On November 22, 2023, the Institute of Chartered Accountants of India (ICAI) unveiled the Exposure Draft of Standards on Auditing for Limited Liability Partnerships (LLPs). This development aligns with Section 34A of the Limited Liability Partnership Act, 2008, empowering the Central Government, in consultation with the National Financial Reporting Authority (NFRA), to prescribe auditing standards for LLPs.
Detailed Analysis: ICAI, having submitted recommendations to NFRA concerning 35 Standards on Auditing for companies under Section 143(10) of the Companies Act, 2013, advocates the application of these standards to LLPs. Consequently, the Auditing and Assurance Standards Board (AASB) of ICAI has released the Exposure Draft for public scrutiny.
The Exposure Draft, accessible here, delineates the proposed auditing standards for LLPs. It’s imperative for stakeholders, including practitioners, businesses, and regulatory bodies, to engage in this consultation process. The draft aims to foster transparency, consistency, and efficacy in auditing practices within the LLP framework.
Invitation to Comment: AASB invites diverse stakeholders to contribute their insights on the Exposure Draft. Comments can be submitted through three channels:
1. Electronically: Submit your comment letter here
2. Email: Send your comments to [email protected]
3. Postal: Mail your comments to the Secretary, Auditing and Assurance Standards Board, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi- 110002.
Conclusion: The deadline for submitting comments on the Exposure Draft is January 6, 2024. This collaborative effort ensures that the auditing standards for LLPs reflect the collective wisdom and perspectives of industry professionals, reinforcing the robustness of financial reporting practices in the evolving landscape of limited liability partnerships. Participate in shaping the auditing landscape by sharing your valuable comments.
Auditing and Assurance Standards Board
The Institute of Chartered Accountants of India
22nd November, 2023
Exposure Draft of Standards on Auditing for Limited Liability Partnerships
Section 34A of the Limited Liability Partnership Act, 2008 prescribes that the Central Government may, in consultation with the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013, prescribe the Standards of Auditing as recommended by the Institute of Chartered Accountants of India constituted under section 3 of the Chartered Accountants Act, 1949, for a class or classes of limited liability partnerships.
The Institute of Chartered Accountants of India (ICAI) had submitted ICAI’s recommendations to the National Financial Reporting Authority (NFRA) regarding 35 Standards on Auditing for their notification under Section 143(10) of the Companies Act, 2013 for audit of companies. ICAI is of the view that the aforesaid Standards on Auditing applicable to audit of companies recommended by ICAI to NFRA, should apply mutatis mutandis to audit of limited liability partnerships.
In this regard, the Auditing and Assurance Standards Board (AASB) of ICAI has issued the Exposure Draft of Standards on Auditing for Limited Liability Partnerships (LLPs) for public comments.
The downloadable version of the Exposure Draft is available at the link : https://www.icai.org/post/ed-standards-on-auditing-for-limited-liability-partnerships-details
Invitation to comment
AASB invites comments from various stakeholders on abovementioned Exposure Draft on Standards on Auditing applicable to LLPs.
How to submit Comments
| 1. Electronically: | Submit a comment letter at the link : https://forms.gle/kcWPzPSPgojWEm7w7 |
| 2. Email: | [email protected] |
| 3. Postal | Secretary, Auditing and Assurance Standards Board The Institute of Chartered Accountants of India ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi- 110002 |
Last date for submitting comments on Exposure Draft is 6th January 2024.
