Practical Auditing Under Clarified ISAs

Author:Glenn COLLINS, Massimo LAUDATO

JEL:M 42

DOI:

Keywords:Clarified ISAs, control environment, risk based audit, risk identification

Abstract:
The clarified International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board are effective for audits of accounting periods starting on or after 15 December 2009 (for the UK, periods ending on or after 15 December 2010). For many auditors the performance of their first engagements under the new ISAs are therefore imminent and need to be supported by relevant training and changes to the audit methodology adopted. \r\nThe clarified ISAs may cause practitioners some concern. After all, the new standards are longer, two new standards have been introduced (ISA 265 on communication of deficiencies in internal control, and ISA 450 on the evaluation of misstatements), 12 other ISAs have been revised, and some of the guidance material in the current standards have been elevated to requirements. However, the actual impact of the new standards on current audit practice is not as extensive as the changes brought about by the adoption of the current ISAs\r\n\r\n\r\n

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