4 December 2015 Show
View the StandardIn March 2009, the IAASB completed its Clarity Project and released its full set of 36 clarified ISAs and the clarified International Standard on Quality Control (ISQC). The Clarity Project involved a comprehensive review of all the ISAs and ISQC to improve their clarity and, thereby, their consistent application. As part of the Clarity Project, the ISAs have also been enhanced relative to the general approach to the audit, to instill a focus on objectives, promote a thinking audit, and emphasize the importance of professional skepticism; and to focus on aspects of financial statements that generally have a higher risk of material misstatement in virtually all audits, for example, estimates and fair values, related parties, and use of service organizations. In addition, the ISAs include enhancements regarding:
Each ISA is structured in separate sections:
The clarified ISAs became effective for audits of financial statements for periods beginning on or after December 15, 2009. The latest version of the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements was published December 2015. Assessment MethodologyView the Assessment MethodologyAs part of the Reports on the Observance of Standards and Codes (ROSC) initiative, the World Bank established a program in 2008 to assist its member countries with the implementation of international accounting and auditing standards for strengthening the financial reporting regime. The objectives of this program are two-fold:
International Auditing and Assurance Standards BoardThe International Auditing and Assurance Standards Board (IAASB) is an independent standard-setting body that serves the public interest by setting high-quality international standards for auditing, quality control, review, other assurance, and related services, and by facilitating the convergence of international and national standards. In doing so, the IAASB enhances the quality and uniformity of practice throughout the world and strengthens public confidence in the global auditing and assurance profession. The IAASB’s Strategy for 2020-2023 and Work Plan for 2020-2021 sets three strategic objectives to focus IAASB priorities and resources on during 2020‒2023.
The Work Plan describes how the IAASB intends to increase its focus on emerging issues, while completing the existing work already committed to and underway. In the Work Plan, the IAASB anticipates standard-setting projects on going concern, fraud, and audit evidence, and work to address the needs of auditors of Less Complex Entities, among other topics. To support an evidence-based and structured consideration of new topics, the IAASB Work Plan highlights a new Framework for Activities, comprising several key components, to help the IAASB develop informed and targeted responses to address emerging issues and topics of global relevance. The IAASB follows a rigorous due process in developing its pronouncements. Input is obtained from a wide range of stakeholders including the IAASB's Consultative Advisory Group national auditing standard setters, IFAC member bodies and their members, regulatory and oversight bodies, firms, governmental agencies, investors, preparers, and the general public. Exposure Drafts of proposed pronouncements are posted on the website and comments are invited; final pronouncements are accompanied by a Basis for Conclusions with respect to comments received. The Public Interest Oversight Board (PIOB) oversees the work of the IAASB and its CAG to ensure that the activities of the IAASB follow due process and are responsive to the public interest. The IAASB is dedicated to operating as transparently as possible. IAASB meetings are open to the public and meeting agendas, agenda papers, and meeting highlights are posted on the website. In addition, the website includes project histories, audio recordings of the IAASB meetings, IAASB Exposure Drafts and all comments made on those drafts by stakeholders. Key Contacts
Who develops international standards for auditing?International Standards on Auditing (ISA) are professional standards for the performance of financial audits of financial information. These standards are issued by the International Federation of Accountants (IFAC) through the International Auditing and Assurance Standards Board (IAASB).
Which of the following is responsible for establishing auditing standards?Answer and Explanation: The Public Company Accounting Oversight Board (PCAOB) is responsible for establishing audit standards of public companies. This organization was established with the passage of the Sarbanes-Oxley Act of 2002. The PCAOB conducts inspections of public accounting firms and sets standards.
Which of the following bodies issue international auditing standards?The IAPC and its successor, the IAASB, have issued International Standards on Auditing since 1991.
Which of the following are standards issued by the International Auditing and Assurance Standards Board?IAASB pronouncements are of several types: International Standards on Quality Control and the International Framework for Assurance Engagements apply to all types of assurance engagements. International Standards on Auditing (ISAs) and International Auditing Practice Statements (IAPSs) apply to audits.
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