|Subject Area||Institutional and Market Infrastructure|
|Issuing Body||International Auditing and Assurance Standards Board (IAASB)|
|Date of Issuance||Ongoing|
International Standards on Auditing (ISAs) are professional standards that deal with the independent auditor's responsibilities when conducting an audit of financial statements. ISAs contain objectives and requirements together with application and other explanatory material. The auditor is required to have an understanding of the entire text of an ISA, including its application and other explanatory material, to understand its objectives and to apply its requirements properly.
In 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) 1. The Clarity Project involved a comprehensive review of all the ISAs and ISQC 1 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:
As part of the Reports on the Observance of Standards and Codes (ROSC) initiative, the World Bank has established a program to assist its member countries in implementing international accounting and auditing standards for strengthening the financial reporting regime. The objectives of this program are two-fold:
|Issuing Body||World Bank|
|Date of Issuance||2008|