QQ3

[Dazy]

Hello all,

Hamdy has asked the following question as a third question in our quick quiz session. Try to answer it. And as decided earlier, please make a new thread for each new question.


International Standards on Auditing (ISAs) are produced by the International Audit and Assurance Standards Board (IAASB), which is a technical committee of the International Federation of Accountants (IFAC).

Required:
Give an overall view (as a brief answers) about the regulatory framework which applies to auditors.
Where you should focus on the following points:

1) The due process of the IAASB involved in producing an ISA.
2) The extent to which an auditor must follow ISAs.
3) The overall authority of ISAs and how they are applied in individual countries.
4) The extent to which ISAs apply to small entities
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[ssab]

plzzz cn i b a member from now onwards.

[Acid]

Welcome to our forum

Please be a part of this study session by answering the Question.

Regards

[Admin]

plzzz cn i b a member from now onwards.

and please speak properly. This is a proffessional forum and want to keep it as such!

[Hamdy Hafez]

plzzz cn i b a member from now onwards.

Hey man are you sab which who are the same member on the acca forums

I've sent to you a message for you & Amanda, so please you are already now an active member on our forum, so please write properly. as Mr. Admin told you , because you need to do more practices (especially the hand written practices) in order to pass your ACCA exams together with us (hand in hand)

[juliana-ap]

International Standards on Auditing (ISAs) are produced by the International Audit and Assurance Standards Board (IAASB), which is a technical committee of the International Federation of Accountants (IFAC).

Required:
Give an overall view (as a brief answers) about the regulatory framework which applies to auditors.
Where you should focus on the following points:

1) The due process of the IAASB involved in producing an ISA.
2) The extent to which an auditor must follow ISAs.
3) The overall authority of ISAs and how they are applied in individual countries.
4) The extent to which ISAs apply to small entities
__________________[/QUOTE]
Q1.

Q2
ISA's contain the basic principles & essential procedures togethetr with related guidance in the form of explanatory & other material.These are to be interpreted and adopt as be the entity inorder to effectively achieve the audit objective.

however i exceptional circumstances the auditor may judge it necessary to depart from an SA in order to achieve the audit objective,when such arises the auditor should be prepared to justify the departure.

Q3
ISA'S do not overide the local regulations on a particular subject,the audit of financial or other infomation in a particular country in accordance with the local regulationswill comply with the ISA'S regarding that subject. However if the local regulation differs or conflicts with ISA;s member bodies are consulted and should be in a position to set forth teh IFAC constitution as ergard to teh matter at hand and try to encourage the local authority/ regulations to comply with the ISA's
Q4.
Although ISA's apply to the audit of financial information of any entity refardless of its size, small business posses a combination of charactacteristics which make it neessary for the auditor to adapt their audit approach to teh circumstances surrounding teh small business engagement


Will be back with q1 tommorrow!!

[Pixiefeet]

1. Subjects for detailed study are selected by a sub-committee of the IAASB (International Auditing and Assurance Standards Board), an exposure draft is then produced for consideration by the IAASB, if approved it is distributed to the member bodies of IFAC (International Federation f Accountants) for comments, these comments are then considered and amended if necessary. An ISA (International Standards on Auditing) is then produced.

2. The auditor must consider the whole text of a standard to understand and apply basic principles and essential procedures; these principles and procedures are contained in the IAASB’s standards. In exceptional circumstances the auditor may find it necessary to depart from an ISA in order to achieve the objective of the audit, if such a situation arises the auditor should be prepared to justify the departure.

3. ISA’s apply to any entity regardless of its size, small businesses may have special characteristics which means that the auditor much adapt their approach because they may be managed by one or two individuals and may not have sophisticated systems in place.

4. ISA do not override the local regulations in a particular country but rather conform with local regulations on a particular subject. In the event the local regulations differ from or conflict with ISA’ on a particular subject, member bodies should encourage changes in local regulations to comply with ISAs).

[Hamdy Hafez]

Ok, now I can post the answer of the third Q,Q
According to our last deal ( as our F8 moderator – Sravanthi)

Hi all,

I think u all still need time to answer QQ. so, let every QQ start on monday and end on sunday. Please c that they r answerd.

Thanks & Regards

Also be note that we just kidding on the last days & the real hard work will start tomorrow (because I was very busy last two weeks on a private issues with my family)
So tomorrow I'll post the Q,Q 4 which represent the first very important quiz of a set v.important quizzes (6 quiz)

[Hamdy Hafez]

The due process of the IAASB involved in producing an ISA

1- A subcommittee of the (IAASB) determines appropriate areas for an ISA (or to note if there is a current standard need to amendment)
2- The subcommittee produces an exposure draft on that subject
3- If the IAASB approve the exposure draft, then it is circulated to the member bodies of the (IFAC) and any other organizations that have a relative interest
4- These bodies make comments on the exposure draft. & sent back to the IAASB and the exposure draft is amended as necessary
5- The exposure draft is re-issued as an ISA or an International Auditing Practice Statement (IAPS).

The extent to which an auditor must follow ISAs

1- Should follow wherever possible
2- Do not follow where audit more efficient (the audit can be achieved more efficiently)
3- Must justify departure (must be prepared to justify the departure. It is expected that departure from any ISA will be the exception rather than the rule)

The overall authority of ISAs and how they are applied in individual countries

1- ISAs are designed to apply to audit of FS
2- May apply to other statements (other historical financial information)
3- Each ISA contains Basic Principles to apply to that ISA (in bold type)
4- Other text in the ISA provides guidance on the implementation of the principles (Explanatory text in normal type)
5- ISA not override requirements of national countries
6- Regarding the detailed requirements of an audit, such as the nature of testing or the issuing of an engagement letter, where the country requirements meet those of the ISA, then the ISA will be used (ie. relevant country use ISA and not issue own guidance )
7- If the national requirements differ – so use national requirements
8- If there are adopt changes , so in this case, local change is needed to comply with the ISA (the ISA can be used)

The extent to which ISAs apply to small entities.

1- Applicable to any entity (no matter what its size)
2- Appropriate ISAs to be followed (to amend the audit approach to fit the circumstances of that business)

[Hamdy Hafez]

see you tomorrow with Q,Q 4

[Dazy]

Hello F8 members,

I must tell you regarding the question that the topic is not frequently examined. However, you will be surprised if you ignore this topic. So, even if this topic is less interesting, you have to study it.

Hamdy and Pixiefeet have covered almost all the points in their answer. The presentation and language of answer is also quite good. Juliana needs to improve a little on her answer to cover all the points.

Overall, it was a very good attempt by all three of you.