- 1 Marks
AAA – L3 – SA – Q4.1 – International Standards on Auditing
Question
Which of the following is true about ISAs?
A They are statutory
B An auditor shall follow them in the conduct of his audit
C An auditor does not have to follow all ISAs
D If uncertain about interpretation, the auditor should contact the IAASB
Answer
B
Explanation:
An auditor must conduct every audit in accordance with International Standards on Auditing (ISAs). ISAs are not statutory (A), as they are professional standards, not laws. All applicable ISAs must be followed (C is incorrect). While guidance may be sought for interpretation, contacting the IAASB directly (D) is not a standard procedure. Thus, B is the correct answer.
- Tags: Audit Standards, Auditor Compliance, ICAG, ISAs
- Level: Level 3
- Topic: The regulatory environment
- Uploader: Salamat Hamid