Audit Process Flow

The audit lifecycle follows a structured approach as prescribed by ICAI's Standards on Auditing. Each stage builds upon the previous one to ensure a comprehensive and reliable audit.

Pre-Engagement & Acceptance

SA 200, 210, 220

Establishing the foundation of the audit engagement. This includes understanding the auditor's overall objectives, agreeing on engagement terms with the client, and ensuring quality control measures are in place.

Engagement Letter Independence Assessment Client Acceptance Quality Control
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Planning

SA 300, 315, 320

Developing the overall audit strategy and detailed audit plan. This involves understanding the entity and its environment, identifying risks of material misstatement, and determining materiality levels.

Audit Strategy Risk Identification Materiality Assessment Understanding Internal Controls
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Execution & Evidence Gathering

SA 330, 500, 505, 520, 530

Performing audit procedures to obtain sufficient appropriate audit evidence. This includes tests of controls, substantive procedures, external confirmations, analytical procedures, and audit sampling.

Substantive Testing External Confirmations Analytical Procedures Audit Sampling TDS Verification
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Specialized Areas

SA 540, 550, 560, 570

Addressing specific audit considerations including accounting estimates, related party transactions, subsequent events, and going concern assessments.

Accounting Estimates Related Parties Subsequent Events Going Concern Lease Accounting
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Completion & Reporting

SA 580, 700, 701, 705, 706

Concluding the audit and forming an opinion. This includes obtaining written representations, evaluating misstatements, communicating with those charged with governance, and issuing the auditor's report.

Written Representations Forming Opinion Key Audit Matters Auditor's Report
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SA 230 - Audit Documentation

Throughout all stages, maintain sufficient and appropriate documentation to provide a record of the basis for the auditor's report. Use File Saathi for secure PDF handling.

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