ISAs (International Standards on Auditing) Fundamentals - Comprehensive Workshop (5 days)

Introduction

The International Auditing and Assurance Standards Board (IAASB) completed its clarity project and issued standards effective for periods commencing on or after 15th December 2009 which resulted in a revision of all the standards. Since then, a number of key projects to enhance and improve the standards have been undertaken and completed, resulting in some significant changes to audit reporting and communication, and integration with ethics and professional skepticism.

The requirement in ISA 200 that “the auditor shall have an understanding of the entire text of an ISA, including its application and other explanatory material, to understand its objectives and to apply its requirements properly” imposes a challenge for audit firms to ensure that its partners and staff have that knowledge.

This five-day course is designed to enable auditors to comply with this requirement by providing a detailed overview of the International Standards on Auditing (ISAs) issued by the IAASB and the changes to the suite of standards resulting from projects completed from 2014 to date.

The program answers questions such as:

• How do I plan an audit under ISAs?
• How do I assess and respond to audit risk?
• What are the requirements for communicating with those charged with governance?
• What are the requirements for communicating deficiencies in internal controls with those charged with governance?
• What are the new requirements for audit reporting and how do these impact the audit process?
• How does NOCLAR impact my role and responsibilities as an auditor?
• What is coming up in environmental scanning?

Learning Objectives

After attending this course you will be able to:

• Understand what changes have recently taken place in the form and content of the ISAs
• Understand the new requirements in major areas of the audit including quality control, communication, compliance with laws and regulations and auditor reporting
• Apply the requirements relating to risk assessment and audit planning in a cost effective manner
• Develop audit documentation to evidence the compliance with the ISAs and comply with the quality control requirements of ISA220 and ISQC 1, as well as the Code of Ethics
• Help others within your country or firm implement the new standards

Who Should Attend

• Public practitioners who audit, or play a substantial role in auditing, public company financial statements
• Audit supervisors and managers at public audit practices

Topics

• Introduction - In this session we will provide an overview of the role and structure of the IAASB as well as an explanation of the IAASB’s projects since 2014, including the auditor reporting, disclosures and NOCLAR projects.
• The ISA 200 series – Overall objectives of the independent auditor and the conduct of an audit in accordance with International Standards on Auditing ISA 200 sets the context for all other ISAs and outlines the overall objectives of the auditor. In this session we will discuss the importance of the basic principles underlying an ISA audit including ethics, professional judgment, skepticism and reasonable assurance. We will also discuss the critical issues arising from non-compliance with laws and regulations, fraud, communication with those charged with governance and quality control. The course covers all the ISA200 series standards, with greater emphasis placed on the following:
  • ISA220 – Quality control for an audit of financial statements, integrating with significant provisions and practical implications from ISQC 1
  • ISA230 – Audit documentation (with a focus on the practical application of quality control requirements)
  • ISA 240 – The auditor’s responsibility relating to fraud in an audit of financial statements
  • ISA 250 - Consideration of laws and regulations in the audit of financial statements, integrating this with the new requirements of the IESBA’s new Code of Ethics for Professional Accountants
  • ISA 260 – Communication with those charged with governance
  • ISA 265 – Communication of deficiencies in internal control to those charged with governance
• The ISA 300 series – audit planning ISA 300 outlines the general approach to audit planning and is supplemented by ISAs dealing with materiality and risk assessment. The course covers:
  • ISA 300 – Planning an audit of financial statements
  • ISA 315 - Identifying and assessing the risks of material misstatement through understanding the entity and its environment
  • ISA 320 – Materiality in planning and performing an audit
  • ISA 330 - The auditor’s responses to assessed risks
• The course explains the requirements of ISA 540 relating to the audit of accounting estimates and fair values. The audit of estimates is becoming increasingly important as financial reporting frameworks evolve and provide opportunities for management bias, and the IAASB is currently engaged in a project to further clarify the responsibilities of auditors in this regard
• Related parties are another area where there can be a high risk of fraud. The course explains the requirements of ISA 550, with an integration into the discussions relating to fraud and significant risk
• The course includes a brief discussion of the requirements of ISA 600 dealing with group audits
• The course also deals in depth with the current audit reporting model set out in ISA 700, 701, 705 and 706, including a discussion of the significant additions and changes to these standards and their intention and impact as a result of the IAASB’s auditor reporting project. The changes in these standards also resulted in revisions to ISAs 260 and 570
• The course provides a brief overview of the current auditing standards in the ISA800 series and other forms of assurance, for example ISRE 2400 Engagements to review historical information and ISAE 3000 (Revised) Assurance Engagements Other Than Audits or Reviews of Historical Financial Information
• The course does not discuss specialized audit areas

Teaching Method

• Group live instruction by someone who is a Registered Auditor (South African Independent Regulatory Board for Auditors), a Chartered Accountant (SA), serving on development committees of both membership bodies, spent many years in public practice at a senior level, auditing large and high risk public sector entities, and is currently a senior lecturer in the subject of auditing.
• Interactive participation, group work, open discussions
• A case study to help apply the NOCLAR and auditor reporting requirements
• All participants will receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Instructors

Venue

CPE/CPD Accreditation

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

 

Field of study: Accounting

Prerequisites

A good understanding of auditing. No advance preparation is required for this course.