Who created the International Auditing Standards?
The International Auditing and Assurance Standards Board (IAASB)
Member of the International Federation of Accountants (IFAC)
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
What financial approach is used under IAASB audit standards?
IAASB standards are based on a risk assessment approach
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
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
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
What are the requirements for all accountants under the International Ethical Standards?
Accountants should have Integrity
Accountants should be Objective
Accountants should have Competence
Accountants should exercise Due Care
Accountants should maintain Confidentiality
Accountants should act Professionally
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?