After Accounting Standards AS 30, AS 31 and AS 32, the Institute of Chartered Accountants of India (ICAI) is planning to introduce four new standards on internal audit (SIA). These standards are SIA-Analytical Procedures, SIA- Sampling, SIA-Reporting and SIA-Quality Insurance in internal audit.
The first standard, SIA-Analytical Procedures, would help in improving the procedure of analysing operations by internal auditors to ensure that they conform to the internal control systems and avoid frauds.
The second, SIA-Sampling, would ensure the auditors follow a standardised quality sampling procedure when they cannot undertake an audit of an entire transaction. SIA-Sampling would be helpful in making sure that the sample selected by the internal auditors is the correct representative sample.
The third standard, SIA-Reporting would ensure that the internal audit reporting system is standardised in terms of the format related to the periodicity, information and the suggestions to be given by the internal auditors.
The fourth standard, SIA-Quality Insurance in Internal Audit, would ensure that the internal auditors provide adequate quality in the services rendered by them. Jain said, “Issuing standards in the area of internal audit has been a crucial step.