Guide to Using International Standards on Auditing in - IFAC

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1. How <strong>to</strong> Use the <strong>Guide</strong>
The purpose of this <strong>Guide</strong> is <strong>to</strong> provide practical guidance <strong>to</strong> practitioners conducting audit engagements for
small- and medium-sized entities (SMEs). However, no material in the <strong>Guide</strong> should be used as a substitute for:
• Reading and understanding of the ISAs
It is assumed that practitioners have read the text of the <strong>International</strong> <strong>Standards</strong> on Auditing (ISAs) as
contained in the 2010 IFAC Handbook of <strong>International</strong> Quality Control, Auditing, Review, Other Assurance,
and Related Services Pronouncements (IFAC Handbook), which can be downloaded free of charge from
the IFAC online publications and resources site at web.ifac.org/publications. ISA 200.19 states that the
audi<strong>to</strong>r shall have an understanding of the entire text of an ISA, including its application and other
explana<strong>to</strong>ry material, <strong>to</strong> understand its objectives and <strong>to</strong> apply its requirements properly. The ISAs, as
well as frequently asked questions (FAQs) and other support materials, can also be obtained from the
Clarity Center at web.ifac.org/clarity-center/index.
• Use of professional judgment
Professional judgment is required based on the particular facts and circumstances involved in the firm
and each particular engagement, and where interpretation of a particular standard is required.
While it is expected that small- and medium-sized practices (SMPs) will be a significant user group, this <strong>Guide</strong>
is intended <strong>to</strong> help all practitioners <strong>to</strong> implement ISAs on SME audits.
This <strong>Guide</strong> can be used <strong>to</strong>:
• Develop a deeper understanding of an audit conducted in compliance with the ISAs;
• Develop a staff manual (supplemented as necessary for local requirements and a firm’s procedure) <strong>to</strong> be
used for day-<strong>to</strong>-day reference, and as a basis for training sessions and individual study and discussion;
and
• Ensure that staff adopt a consistent approach <strong>to</strong> planning and performing an audit.
This <strong>Guide</strong> often refers <strong>to</strong> an audit team, which implies that more than one audi<strong>to</strong>r is involved in conducting
the audit engagement. However, the same general principles also apply <strong>to</strong> audit engagements performed
exclusively by one person (the practitioner).
1.1 Reproduction, Translation, and Adaptation of the <strong>Guide</strong>
IFAC encourages and facilitates the reproduction, translation, and adaptation of its publications. Interested
parties wishing <strong>to</strong> reproduce, translate, or adapt this guide should contact permissions@ifac.org.