Analyze the importance of Auditing Standard for the purpose of reporting to the members of the company by the statutory auditors under the Companies Act, 2013.

The Standards on Auditing have been accorded legal sanctity under the Companies Act, 2013. Auditors are now mandatorily bound to ensure compliance with Standards on Auditing. As per Section 143(2) of the Companies Act 2013, the auditor shall make a report to the members of the company on the accounts examined by him and on every financial statements which are required by or under this Act to be laid before the company in general meeting and the report shall after taking into account the provisions of this Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of this Act or any rules made thereunder or under any order made under sub-section (11) and to the best of his information and knowledge, the said accounts, financial statements give a true and fair view of the state of the company's affairs as at the end of its financial year and profit or loss and cash flow for the year and such other matters as prescribed in Rule 11 (Other matters to be included in Auditor's Report) of the Companies (Audit and Auditors) Rules, 2014. As per Section 143(9) of the Companies Act 2013, it is the duty of every auditor to comply with the auditing standards. Section 143(10) confers power to the Central Government to prescribe the standards of auditing as recommended by the Institute of Chartered Accountants of India in consultation with the National Financial Reporting Authority: However, until any auditing standards are notified, any standard or standards of auditing specified by the Institute of Chartered Accountants of India shall be deemed to be the auditing standards.