ICAI Releases Exposure Draft of Auditing Standards for LLPs, Seeks Public Comments [Read Notification]

The Institute of Chartered Accountants of India (ICAI) has released a new Exposure Draft proposing a dedicated set of Standards on Auditing (SAs) for Limited Liability Partnerships (LLPs). The Exposure Draft was issued by the Auditing and Assurance Standards Board (AASB) of ICAI on 10th April 2025, and public comments are invited until 1st May 2025.

This is the first time that India will formally introduce auditing standards specifically designed for LLPs. Until now, LLPs often followed standards made for companies, even though their structure and regulatory requirements are different.

Stay Updated with the Latest Audit Report Formats & Audit Trials Requirements! Click here

What the Exposure Draft Contains

The new standards are based on the existing Standards on Auditing approved by the ICAI for companies. However, certain modifications have been made to tailor these standards for the unique structure of LLPs. These changes include alterations in terminology, some text updates, and adjustments in illustrative formats such as the independent auditor’s report and engagement letters.

Read More: Global Trade in Crisis: A Recap of Trump’s Tariffs and the World’s Response

The word "Revised" has been removed from the titles of the standards because this is the first time these will be officially issued under the LLP Act, 2008.

There are two major categories of changes in this Exposure Draft:

The first category includes conforming amendments that reflect updates made in six major auditing standards recently finalized by ICAI. These include SQM 1, SQM 2, and revised versions of SA 220, SA 250, SA 315, and SA 540. These updates mainly involve formatting changes, paragraph renumbering, and reference corrections. These changes have been marked in blue and shown in track-change format, but ICAI has made it clear that public comments are not required on these portions.

The second category includes changes that are specific to LLPs. These changes involve updating terminology to refer to LLPs instead of companies, modifying or deleting certain parts of the text that do not apply to LLP transactions, and adapting formats to suit the context of LLP audits. These changes are highlighted in yellow in the draft, and ICAI has requested public comments on these specific changes.

Read More: [BREAKING] Table 3.2 in GSTR-3B to be System-Locked Starting April 2025: GSTN Advisory

How to Submit Comments

ICAI has encouraged professionals, stakeholders, and members of the public to share their comments on the proposed LLP-specific changes. Comments should refer to specific paragraphs, include clear reasoning, and if possible, suggest alternative wording.

There are three ways to submit comments:

1. Online through a Google Form (preferred): HERE
2. Email to: aasb@icai.in
3. Postal mail to:
    Secretary, Auditing and Assurance Standards Board
    The Institute of Chartered Accountants of India
    ICAI Bhawan, Post Box No. 7100
    Indraprastha Marg, New Delhi – 110002

The full Exposure Draft can be downloaded at this link HERE

Read More: GSTN Announces Phase-III Changes to Table-12 of GSTR-1 and 1A with HSN Dropdown, Effective April 2025

Legal Background

Under Section 34A of the Limited Liability Partnership Act, 2008, the Central Government can notify auditing standards for LLPs. However, these standards must be developed based on recommendations from ICAI and in consultation with the National Financial Reporting Authority (NFRA), as laid out under Section 132 of the Companies Act, 2013.

Responding to a direction from the Ministry of Corporate Affairs (MCA), ICAI has now prepared this Exposure Draft of Standards on Auditing for LLPs. The draft adapts the existing auditing standards that are already used for companies and adjusts them to suit the specific needs of LLPs.

To Read the full text of the Notification CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates