TWSA200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing

Status

Issued by Auditing and Assurance Standards Committee in Taiwan on 5 Aug., 2025.

Summary

This standard deals with the independent auditor’s overall responsibilities when conducting an audit of financial statements in accordance with TWSAs. Specifically, it sets out the overall objectives of the independent auditor, and explains the nature and scope of an audit designed to enable the independent auditor to meet those objectives. It also explains the scope, authority and structure of the TWSAs., and includes requirements establishing the general responsibilities of the independent auditor applicable in all audits, including the obligation to comply with the TWSAs.

In conducting an audit of financial statements, the overall objectives of the auditor are:

(a) To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework; and

(b) To report on the financial statements, and communicate as required by the TWSAs, in accordance with the auditor’s findings.

The auditor shall comply with relevant ethical requirements, including those related to independence, relating to financial statement audit engagements.

The auditor shall plan and perform an audit with professional skepticism recognizing that circumstances may exist that cause the financial statements to be materially misstated.

The auditor shall exercise professional judgment in planning and performing an audit of financial statements.

To obtain reasonable assurance, the auditor shall obtain sufficient appropriate audit evidence to reduce audit risk to an acceptably low level and thereby enable the auditor to draw reasonable conclusions on which to base the auditor’s opinion.

The auditor shall comply with all TWSAs relevant to the audit. An TWSA is relevant to the audit when the TWSA is in effect and the circumstances addressed by the TWSA exist.

To achieve the overall objectives of the auditor, the auditor shall use the objectives stated in relevant TWSAs in planning and performing the audit, having regard to the interrelationships among the TWSAs, to:

(a) Determine whether any audit procedures in addition to those required by the TWSAs are necessary in pursuance of the objectives stated in the TWSAs; and

(b) Evaluate whether sufficient appropriate audit evidence has been obtained.

In exceptional circumstances, the auditor may judge it necessary to depart from a relevant requirement in an TWSA. In such circumstances, the auditor shall perform alternative audit procedures to achieve the aim of that requirement. The need for the auditor to depart from a relevant requirement is expected to arise only where the requirement is for a specific procedure to be performed and, in the specific circumstances of the audit, that procedure would be ineffective in achieving the aim of the requirement.

If an objective in a relevant TWSA cannot be achieved, the auditor shall evaluate whether this prevents the auditor from achieving the overall objectives of the auditor and thereby requires the auditor, in accordance with the TWSAs, to modify the auditor’s opinion or withdraw from the engagement (where withdrawal is possible under applicable law or regulation).

Effective date

This Standard is effective from 30 Sept., 2025.