2: Statutory Audit and Regulation Flashcards
What does IFAC stand for?
International Federation of Accounting
What does the IFAC do?
FAC guides efforts to achieve
- international…
- technical
- ethical
- educational
statements for the accountancy profession.
What does IAASB stand for?
International Auditing and Assurance Board
What is the goal of the IAASB?
The development of a set of international standards that are accepted worldwide
What are ISA’s?
International standards on auditing
Who issues ISA’s
The IAASB
What do ISA’s do?
Provide guidance on the performance of an audit
What kind of financial information do ISA’s apply to?
Historical financial information
What context are ISA’s written in?
They are written in the context of an audit of financial statements by an independent auditor
If an auditor deems it necessary to depart from the guidance of an ISA what must they do?
Justify the reason
What do ISA’s not overide?
Local regulation/Law
What happens if the local regulation does not apply with the ISA?
The IFAC encourage the local regulations to change their regulation so it does comply with the IAS’s
What are four rights of the auditors?
✓ access to accounting records;
✓ require information and explanations as necessary;
✓ receive notice of, attend and speak at general meetings of shareholders;
✓ rights relating to their removal, resignation and retirement.
What are the duties of an auditor?
To report to the shareholders of the entity on whether or not the financial statements show a true and fair view and have been prepared in accordance with the applicable reporting framework.
When can the directors appoint an auditor?
When it is the companies first accounting period
or
To fill a vacancy
