2021 UNIZULU AUDITING 3 Introduction to International Standards on Auditing International Standards on Auditing (ISA) refer to professional standards dealing with the responsibilities of the independent auditor while conducting the financial audit of financial info. These standards are issued by International Federation of Accountants (IFAC) through the International Auditing and Assurance Standards Board (IAASB). The ISAs include requirements and objectives along with application and other explanatory material. The auditor is obligatory to have knowledge about the whole text of an ISA, counting its application and other explanatory material, to be aware of the objectives and to apply the requirements aptly. The key standards issued by the ISA include: · Respective responsibilities · Audit planning · Internal control · Audit evidence · Using work of other experts · Audit conclusions and audit report Specialized areas STRUCTURE OF ISAS Every ISA is structured in individual sections as: . Introduction Introductory material can include the purpose, scope, and subject matter of the ISA, as well as the responsibilities of the auditor and others in context in which the ISA is established. . Objective Every ISA consists of as clear statement about the objective of the auditor in the audit area addressed by that ISA. · Definitions For higher understanding of the ISAs, pertinent terms are delineated in each ISA. . Requirements Every objective is shored up by clearly stated requirements. Requirements are always expressed by the phrase "the auditor shall." . Application and other explanatory material The application and other explanatory material explains more exactly what is meant by a requirement or is intended to cover, or includes examples of procedures that can be appropriate under certain circumstances. OBJECTIVES OF THE ISA The ISA objectives are two-fold: 1
LIST OF ISAS ISA 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing ISA 210, Agreeing the Terms of Audit Engagements · ISA 220, Quality Control for an Audit of Financial Statements* . ISA 230, Audit Documentation · ISA 240, The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements ISA 250, Consideration of Laws and Regulations in an Audit of Financial Statements · ISA 260, Communication with Those Charged with Governance . ISA 265, Communicating Deficiencies in Internal Control to Those Charged with Governance and Management · 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 ISA 402, Audit Considerations Relating to an Entity Using a Service Organization · ISA 450, Evaluation of Misstatements Identified during the Audit ISA 500, Audit Evidence · ISA 501, Audit Evidence-Specific Considerations for Selected Items · ISA 505, External Confirmations · ISA 510, Initial Audit Engagements-Opening Balances · ISA 520, Analytical Procedures ISA 530, Audit Sampling 2
ISA 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures