Guide to Using International Standards on Auditing in - IFAC

50
<strong>Guide</strong> <strong>to</strong> <strong>Using</strong> <strong>International</strong> <strong>Standards</strong> on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts
The ISAs set out the responsibilities and requirements of audi<strong>to</strong>rs in conducting an audit. As stated in ISA
200.18, 22, and 23, each relevant requirement (set out in the requirements section of the ISAs) is <strong>to</strong> be
followed by the audi<strong>to</strong>r, except in exceptional circumstances, where alternative audit procedures would
be performed <strong>to</strong> achieve the aim of that particular requirement. Note the following.
Exhibit 4.8-1
ISAs
Status
Relevance
Local Laws
Other
Description
The ISAs, taken <strong>to</strong>gether, provide the standards for the audi<strong>to</strong>r’s work in fulfilling the
overall objectives of the audi<strong>to</strong>r.
The ISAs deal with the general responsibilities of the audi<strong>to</strong>r, as well as the audi<strong>to</strong>r’s further
considerations relevant <strong>to</strong> the application of those responsibilities <strong>to</strong> specific <strong>to</strong>pics.
Some ISAs (and therefore all of their requirements) may not be relevant in the
circumstances (e.g., internal audit or group accounts).
Some ISAs contain conditional requirements. These requirements are relevant when
the circumstances envisioned apply and the condition exists.
Departures from relevant ISA requirements need <strong>to</strong> be documented, along with the
alternative audit procedures performed and the reasons for the departure.
Audi<strong>to</strong>rs may be required (in addition <strong>to</strong> the ISAs) <strong>to</strong> comply with certain legal or
regula<strong>to</strong>ry requirements or other auditing standards of a specific jurisdiction or country.
The scope, effective date, and any specific limitation of the applicability of a specific
ISA is made clear in the ISA. However, the effective date of the ISA may also be
affected by legal requirements in a particular jurisdiction.
Unless otherwise stated in the ISA, the audi<strong>to</strong>r is permitted <strong>to</strong> apply an ISA before the
effective date specified therein.