ISA 200, Starting Point for Understanding Clarified Standards

Author:Lisa WEAVER

JEL:M 42

DOI:

Keywords:audit evidence, Clarity Project, professional skepticism

Abstract:
In this article it is analyzed ISA 200 starting from the fact that this was the standard that was revised and redrafted as part of the Clarity Project. The International Auditing and Assurance Standards Board (IAASB) makes it clear that an understanding of this ISA is crucial to auditors, as this ISA sets out how the objectives, requirements, application and explanatory material contained in all ISAs are to be understood and applied.\r\nISA 200 should be seen as the starting point in developing an understanding of the Clarified ISAs. It contains basic objectives and requirements that should be followed in all audits of historical information. It is such a fundamental standard that all the other ISAs contain a prompt saying they should be read in conjunction with ISA 200. So while some of the points made below will be familiar and should be obvious to the competent auditor, the points are worthy of revision.\r\nThe objectives and requirements of ISA 200 underpin all audits of historical financial statements, regardless of the size or complexity of the entity being audited. The IAASB states that ISA 200 should be read and studied by all auditors, even though many of the concepts are familiar from the previous incarnation of the standard. \r\n\r\n\r\n

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