INTRODUCTION 1.1 APB Ethical Standards for Auditors require an auditor to be independent from the entity that it is appointed to audit. There is a substantial degree of similarity between an audit opinion and the nature of assurance provided by accountants reporting for the purposes of an investment circular prepared in accordance with the…
Read MoreINTRODUCTION The APB issues Ethical Standards which set out the standards that auditors are required to comply with in order to discharge their responsibilities in respect of their integrity, objectivity and independence. The Ethical Standards 1 to 5 address such matters as: How audit firms set policies and procedures to ensure that, in relation…
Read MoreINTRODUCTION APB Ethical Standard 1 requires the audit engagement partner to identify and assess the circumstances which could adversely affect the auditor’s objectivity (‘threats’), including any perceived loss of independence, and to apply procedures (‘safeguards’) which will either: eliminate the threat; or reduce the threat to an acceptable level (that is, a level at…
Read MoreINTRODUCTION APB Ethical Standard 1 requires the audit engagement partner to identify and assess the circumstances which could adversely affect the auditor’s objectivity (‘threats’), including any perceived loss of independence, and to apply procedures (‘safeguards’) which will either: eliminate the threat; or reduce the threat to an acceptable level (that is, a level at…
Read MoreINTRODUCTION APB Ethical Standard 1 requires the audit engagement partner to identify and assess the circumstances which could adversely affect the auditor’s objectivity (‘threats’), including any perceived loss of independence, and to apply procedures (‘safeguards’) which will either: eliminate the threat; or reduce the threat to an acceptable level (that is, a level at…
Read MoreAPB Ethical Standard 1 requires the audit engagement partner to identify and assess the circumstances which could adversely affect the auditor’s objectivity (‘threats’), including any perceived loss of independence, and to apply procedures (‘safeguards’) which will either: eliminate the threat; or reduce the threat to an acceptable level (that is, a level at which it…
Read MoreINTRODUCTION The financial statements of an entity may have a number of different users. For example, they may be used by suppliers and customers, joint venture partners, bankers and other suppliers of finance, taxation and regulatory authorities, employees, trades unions and environmental groups. In the case of a listed company, the financial statements are…
Read MoreCOMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE FORMING AN OPINION AND REPORTING ON FINANCIAL STATEMENTS ACCOUNTS PAYABLE AGREEING THE TERMS OF AUDIT ENGAGEMENTS ASSURANCE ENGAGEMENTS OTHER THAN AUDITS OR REVIEWS OF HISTORICAL FINANCIAL INFORMATION INTERNATIONAL FRAMEWORK FOR ASSURANCE ENGAGEMENTS AUDIT EVIDENCE—ADDITIONAL CONSIDERATIONS FOR SPECIFIC ITEMS MODIFICATIONS TO THE OPINION IN THE INDEPENDENT AUDITOR’S REPORT CODE OF…
Read MoreIntroduction Scope of this ISA This International Standard on Auditing (ISA) deals with the auditor’s responsibility to request written representations, and the auditor’s actions when relevant parties do not provide the requested written representations, or when the auditor concludes that such written representations are not reliable. Appendix 1 lists other ISAs containing requirements and guidance…
Read MoreIntroduction The purpose of this International Standard on Auditing (ISA) is to establish standards and to provide guidance on obtaining an understanding of the entity and its environment, including its internal control, and on assessing the risks of material misstatement in a financial statement audit. The importance of the auditor’s risk assessment as a basis…
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