Company Auditing

Topics: Auditing, Audit, Financial audit Pages: 13 (4434 words) Published: April 22, 2013
Group Assignment – HBC614B Company Auditing


The International Auditing and Assurance Standards Board (IAASB) is an independent standard setting body within the International Federation of Accountants (IFAC). Established in 1978, originally known as International Auditing Practices Committee (IAPC), it changed its name to IAASB in early 2001 and was then reformed by IFAC in 2003. IAASB puts public interest first and aims to improve the quality and uniformity of practice throughout the world and to strengthen public confidence in the global auditing and assurance profession by facilitating the convergence of international and national standards. IAASB is committed to achieve its objectives through the following works: • Developing Standards – establish high quality auditing, review, other assurance, quality control and related services standards, such as International Standards on Auditing (ISAs). • Global Acceptance & Convergence – promote the acceptance and adoption of IAASB pronouncements throughout the world and support a strong and solid international accountancy profession by coordinating with IFAC member bodies, regional organisations and national standard setters. • Communication – encourage debate and present papers on a variety of audit and assurance issues and increase the public image and awareness of the activities of the IAASB. To date, the IAASB has earned increasing recognition for the quality of its standards and the credibility of its standard setting process. This has contributed to the increasing use of its standards worldwide. Over 100 countries are now using or are in the process of adopting ISAs into their national auditing standards. For investors in international capital markets, the quality of audit reports and audit opinions on financial reports are crucial when they make decisions about capital allocation. Audits, working within internationally accepted auditing standards, increase the credibility and reliability of the financial information provided in the financial reports. As Australian capital markets are increasingly linked with overseas markets, it is important to have a globally standardised financial reporting framework that is supported by globally accepted auditing standards. The Australian Auditing and Assurance Standards Board (AUASB) made the compliance with IAASB standards easier via a long-standing policy of convergence and harmonisation with ISAs. The AUASB uses ISAs as a base to develop Australian Standards on Auditing (ASA). For any revision and enhancement of ISAs initiated by the IAASB, the AUASB will make appropriate consequential amendments to ASA. The AUASB and IAASB generally issue an exposure draft of a proposed auditing and assurance standard concurrently for consideration by interested parties. In New Zealand, New Zealand Auditing Standards (AS) and Audit Guidance Statements (AGS) are also based on ISAs and International Auditing Practice Statements (IAPS). The New Zealand auditing authority adopts the IFAC documents and amends them only as necessary to achieve its

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Group Assignment – HBC614B Company Auditing

objectives. Amendments to the IFAC documents may be made to reflect specific New Zealand legislative requirements or to reflect specific audit practising arrangements within New Zealand. As we can see, for years since IAPC or IAASB was established, it has played a very important role in enhancing and standardizing the quality of auditing and assurance services around the world. =============================

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Group Assignment – HBC614B Company Auditing


In most developed countries, including Australia, the auditing regulatory framework is provided, at least to some extent, by government through legislation and government...

References: 1. 2. Australian Auditing and Assurance Handbook, 2007 Edition, CPA Australia Australian Government’s Financial Reporting Council 2005, Australian Government’s Financial Reporting Council, viewed 20 May 2008, 3. Brief History 2008, International Auditing and Assurance Standards Board, IAS Plus, Deloitte, viewed 18 May 2008, 4. Chris Pearce, Parliamentary Secretary to the Treasury, 22 November 2004, “The future of governance regulation in Australia, Address to the 21st National Conference of Chartered Secretaries Australia”, viewed 19 May 2008, 04&DocType=1 5. Gay & Simnett, 2007, ‘Chapter 6 Planning, Knowledge of the Business and Evaluating Business Risk’, Auditing and Assurance Services in Australia, revised edn 3, McGraw-Hill Australia Pty Ltd. 6. International Auditing and Assurance Standards Board 2008, IFAC, viewed 18 May 2008, 7. James M. Sylph, January 14, 2005, “Global Convergence – Near or Far?”, American Accounting Association Auditing Section 2005 Mid Year Conference New Orleans, viewed 18 May 2008, 8. Jane Diplock AO, 11 November 2005, “Importance of Audit Quality and Auditing Standards, New Zealand and International Perspectives”, New Zealand Institute of Chartered Accountants Wellington Seminar, viewed 18 May 2008, 9. Malcolm C. Miller, Accounting Regulation and the Roles Assumed by the Government and the Accounting Profession: The case of Australia, School of Accounting UNSW , 1996 10. Prof. Ian Ramsay, 2002 Submissions, Independence of Australian Company Auditors, viewed 19 May 2008,
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