- 15 Marks
AAA – May 2017 – L3 – Q5 – Audit Reporting
Explain the IAASB Clarity Project's objective and describe new requirements in various revised ISAs.
Question
You are an Audit Manager of Lobito James & Co., a firm of Chartered Accountants. You are aware of some significant changes and new requirements in the Revised ISAs as a result of the IAASB Clarity Project issued in October 2008 that are expected to impact the following audit procedures:
(a) Communicating with those charged with governance (ISA 260).
(b) Materiality in planning and performing an audit (ISA 320).
(c) Audit considerations relating to an entity using a service organisation (ISA 402).
(d) Evaluation of misstatements identified during an audit (ISA 450).
(e) External confirmation (ISA 505).
(f) Auditing accounting estimates, including fair value, accounting estimates and related disclosures (ISA 540).
(g) Related parties (ISA 550).
You are required to:
i. Explain the objective of the IAASB Clarity Project. (1 Mark)
ii. Explain TWO new requirements in each of the revised ISAs listed above. (14 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Requirements, Audit Standards, Auditing Procedures, IAASB Clarity Project, ISAs
- Level: Level 3
- Topic: Audit Reporting