- 7 Marks
Question
International Standards on Auditing (ISAs) are developed and updated by the International Auditing and Assurance Standards Board (IAASB), which is an independent standard-setting body established by the International Federation of Accountants (IFAC). The Institute of Chartered Accountants, Ghana adopts the standards set by the International Auditing and Assurance Standards Board (IAASB).
Required:
Describe the process for developing and updating ISAs.
(7 marks)
Answer
The process for developing and updating ISAs involves the following steps:
- Identification of Topics for Standard-Setting: The IAASB identifies and prioritizes topics based on input from stakeholders, including public, regulatory bodies, and professional organizations.
- Establishing a Task Force: The IAASB creates a task force comprising experts in auditing, including auditors, preparers of financial statements, regulators, and academics, to draft the proposed standard.
- Drafting an Exposure Draft: The task force develops an exposure draft of the proposed standard, which is circulated for public comment. The exposure draft outlines the objectives and key features of the proposed standard.
- Review and Analysis of Public Comments: After public comments are received, the IAASB reviews and analyzes the feedback to make necessary revisions to the proposed standard.
- Issuance of the Final Standard: The IAASB issues the final standard, incorporating changes based on public feedback. The standard is then published and made available to all relevant stakeholders.
- Periodic Review and Update: ISAs are periodically reviewed and updated to remain relevant to the evolving auditing environment. This process involves further stakeholder consultations and updates.
- Tags: : ISA development, IAASB, IFAC, Standard-setting process
- Level: Level 2
- Topic: Institutional Regulation and Standard-Setting
- Series: NOV 2023
- Uploader: Dotse