International Auditing

Question 1

Who created the International Auditing Standards?

Answer 1

The International Auditing and Assurance Standards Board (IAASB) Member of the _I_nternational _F_ederation of _Ac_countants (IFAC)

Question 2

For whom were IAASB International Auditing Standards created?

Answer 2

• 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

Question 3

What financial approach is used under IAASB audit standards?

Answer 3

IAASB standards are based on a risk assessment approach

Question 4

How do IAASB audit standards compare to US audit standards?

Answer 4

• 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

Question 5

What are International Ethical Standards?

Answer 5

Standards set by International Ethics Standards Board for Accountants (IESBA)

Code of Ethics for Professional Accountants - Similar to AICPA Code of Professional Conduct

Question 6

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

Answer 6

• Covers all accountants
• Covers Public accountants
• Covers accountants in a business environment

Question 7

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

Answer 7

• 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