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Flashcards in International Auditing Deck (8):
1

Who created the International Auditing Standards?

The International Auditing and Assurance Standards Board (IAASB) Member of the International Federation of Accountants (IFAC)

2

For whom were IAASB International Auditing Standards created?

  • IAASB standards are for countries that don't have their own standards and help set the tone for the rest of the members who do have their own standards (AICPA)

 

  • IAASB doesn't override member standards

3

What financial approach is used under IAASB audit standards?

IAASB standards are based on a risk assessment approach

4

How do IAASB audit standards compare to US audit standards?

  • IAASB - No Internal Control audits
  • IAASB - No Referencing another Audit Firm
  • IAASB - Less detailed documentation
  • IAASB - Required: obtain written fraud assessment
  • IAASB - Required: location of auditor's home office

5

What are International Ethical Standards?

  • Standards set by International Ethics Standards Board for Accountants (IESBA)
  • Code of Ethics for Professional Accountants - Similar to AICPA Code of Professional Conduct

6

Which groups are covered under the three sections of the International Ethical Standards?

A) Covers all accountants

B) Covers Public accountants

C) Covers accountants in a business environment

7

What are the requirements for all accountants under the International Ethical Standards?

Accountants should

  • have Integrity
  • be Objective
  • have Competence
  • exercise Due Care
  • maintain Confidentiality
  • act Professionally

8

What questions should public accountants pose to themselves under the International Ethical Standards?

  • What are the threats/safeguards?
  • Does this new client threaten our ethics?
  • What are the conflicts of interest?
  • What are the threats/safeguards for offering a second opinion?
  • What are the threats/safeguards for receiving commissions or contingent fees?
  • Is our marketing truthful?
  • What are the threats/safeguards for receiving client gifts?
  • What are the threats/safeguards to objectivity?