International Standards on Auditing

International Standards on Auditing (ISA) are professional standards for the performance of financial audit of financial information. These standards are issued by International Federation of Accountants (IFAC) through the International Auditing and Assurance Standards Board (IAASB). According to Olung M (CAO - L) ISA guides the auditor to add value to the assignment hence building confidence of investors.

List of the Standards (ISAs)

Respective responsibilities

Audit planning

  • ISA 300 Planning an Audit of Financial Statements
  • ISA 315 Identifying and assessing the risks of material misstatement through understanding the entity and its environment
  • ISA 320 Materiality in planning and performing an audit
  • ISA 330 The auditor's responses to assessed risks

Internal Control

  • ISA 402 Audit Considerations Relating to an Entity Using a Service Organization
  • ISA 450 Evaluation of Misstatements Identified during the Audit

Audit evidence

Using work of other experts

  • ISA 600 Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors)
  • ISA 610 Using the Work of Internal Auditors
  • ISA 620 Using the Work of an Auditor's Expert

Audit conclusions and Audit report

  • ISA 700 Forming an Opinion and Reporting on Financial Statements
  • ISA 701 Communicating Key Audit Matters in the Independent Auditor's Report
  • ISA 705 Modifications to the Opinion in the Independent Auditor's Report
  • ISA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report
  • ISA 710 Comparative Information - Corresponding Figures and Comparative Financial Statements
  • ISA 720 The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements

Specialized areas

  • ISA 800 Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks
  • ISA 805 Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
  • ISA 810 Engagements to Report on Summary Financial Statements
  • International Standard on Quality Control (ISQC) 1, Quality Controls for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements

Use of the ISAs

  • European Union: The Audit Directive of 17 May 2006 enforces the use of the International Standards on Auditing for all Statutory audits to be performed in the European Union.

The Audit Directive of 17 May 2006 is important in order to ensure a high quality for all statutory audits required by Community law requiring all statutory audits be carried out on the basis of all international auditing standards. The Directive has given implementing powers to the European Commission, in order to adopt "en bloc" the ISAs in accordance with the Council Decision of 28 June 1999, also known as the "Comitology Decision".

See also

Notes and references

  1. "United Nations Board of Auditors". www.un.org. Retrieved 17 April 2018.
  2. The INTOSAI Financial Audit Guidelines are based on the International Standards on Auditing (ISA) issued by the IAASB http://www.afrosai-e.org.za/HOME/Menu/TechnicalAdvancement/INTOSAIauditingstandards/tabid/82/Default.aspx
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