The Institute of Chartered Accountants of India (ICAI), through its Auditing and Assurance Standards Board (AASB), has released an Exposure Draft of Standards on Auditing specifically for Limited Liability Partnerships (LLPs). This initiative follows the LLP Act, 2008, which allows the Central Government to prescribe auditing standards for LLPs based on ICAI’s recommendations. The draft adapts existing Standards on Auditing approved for companies, incorporating necessary amendments for LLPs. These changes include terminology adjustments, minor text rewordings, and modifications to illustrative formats like auditor’s reports and engagement letters. While conforming amendments resulting from recent standard finalizations are included without seeking comment, feedback is requested by May 1, 2025, on the limited LLP-specific changes, which are highlighted in yellow in the draft available on the ICAI website. Comments can be submitted electronically via a provided link, by email, or by post.
Auditing and Assurance Standards Board
The Institute of Chartered Accountants of India
10th April 2025
Exposure Draft of Standards on Auditing for Audits of Limited Liability Partnerships
Background
Section 34A of the Limited Liability Partnership Act, 2008 (LLP 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 MCA had directed ICAI to prepare and present a separate set of Standards on Auditing for LLPs (SAs for LLPs). The Auditing and Assurance Standards Board (AASB) of ICAI has developed this Exposure Draft of SAs for LLPs by adopting the “SAs as approved by the Council of ICAI for companies” after making relevant amendments as considered necessary.
The SAs for LLPs will be notified for the first time under the LLP Act, 2008. As a result, the word “Revised” has been removed from the titles of these SAs.
The categories of amendments made, and the relevant actions as required for the purpose of exposure is as below:
| Category | Details | Action required |
| Conforming
Amendments
Changes made to make standards relevant for Audit of LLPs |
The Exposure Draft incorporates the necessary conforming amendments resulting from the finalisation of six standards (SQM 1, SQM 2, SA 220(Revised), SA 250(Revised), SA 315(Revised), and SA 540(Revised)) by ICAI.
These amendments involve updates to the text, paragraph numbering, referencing, and footnotes within the various SAs.
|
The changes are marked in track change mode and highlighted in blue colour.
Comments are not sought on these conforming amendments and no comments need to be furnished. These limited changes made to the existing SAs in the context of LLPs are marked in track change mode and highlighted in yellow colour. Comments may be furnished for these changes. |
The downloadable version of the Exposure Draft is available at the following link: https://resource.cdn.icai.org/85382aasb-ed-saallp.pdf
Request for Comment
AASB invites comments on the limited changes proposed in this Exposure Draft in the context of LLPs.
Comments are most helpful if they indicate the specific paragraph(s) to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.
How to Comment
Comments should be submitted using one of the following methods, so as to receive not later than 1st May 2025:
| 1. | Electronically | Visit the following link to submit a comment letter (Preferred method): https://forms.gle/zxZ13RLnci6tru5k9 |
| 2. | Comments can be sent at: aasb@icai.in | |
| 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 |
