Guide to Using International Standards on Auditing in - IFAC

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2. Clarified ISAs
In March 2009, the IAASB announced the completion of its program <strong>to</strong> enhance the clarity of its ISAs (Clarity
Project). This program involved the application of new drafting conventions <strong>to</strong> all ISAs, either as part of a
substantive revision or through a limited redrafting, <strong>to</strong> reflect the new conventions and matters of clarity
generally. Audi<strong>to</strong>rs now have access <strong>to</strong> 36 newly updated and clarified ISAs and a clarified ISQC.
Structure of Clarified <strong>Standards</strong>
The clarified ISAs have a common structure, as outlined below.
ISA Element
Introduction
Objectives
Definitions
Requirements
Comments
An explanation of the purpose and scope of the ISA, including how the ISA relates
<strong>to</strong> other ISAs, the subject matter of the ISA, specific expectations on the audi<strong>to</strong>r and
others, and the context in which the ISA is set.
The objective <strong>to</strong> be achieved by the audi<strong>to</strong>r as a result of complying with the requirements
of the ISA. To achieve the overall objectives of the audi<strong>to</strong>r, the audi<strong>to</strong>r is required <strong>to</strong> use the
objectives stated in relevant ISAs in planning and performing the audit, keeping in mind the
interrelationships among the ISAs. ISA 200.21 (a) requires the audi<strong>to</strong>r <strong>to</strong>:
(a) Determine whether any audit procedures in addition <strong>to</strong> those required by the
ISAs are necessary in pursuance of the objectives stated in the ISAs; and
(b) Evaluate whether sufficient appropriate audit evidence has been obtained.
A description of the meanings attributed <strong>to</strong> certain terms for purposes of the ISAs.
These are provided <strong>to</strong> assist in the consistent application and interpretation of the
ISAs. They are not intended <strong>to</strong> override definitions that may be established for other
purposes, such as those contained in laws or regulations. Unless otherwise indicated,
these terms carry the same meanings throughout the ISAs.
This section outlines the specific audi<strong>to</strong>r requirements. Each requirement contains
the word “shall.” For example, ISA 200.15 contains the following requirement:
“The audi<strong>to</strong>r shall plan and perform an audit with professional skepticism,
recognizing that circumstances may exist that cause the financial statements <strong>to</strong>
be materially misstated.”