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International Standards on Auditing (ISA) are professional standards for the auditing of financial information. These standards are issued by the
International Auditing and Assurance Standards Board The International Auditing and Assurance Standards Board (IAASB) is an independent standards body that issues standards, like the International Standards on Auditing, quality control guidelines, and other services, to support the international aud ...
(IAASB). According to Olung M (CAO - L), ISA guides the auditor to add value to the assignment hence building confidence of investors. The standards cover various areas of auditing, including respective responsibilities, audit planning,
Internal Control Internal control, as defined by accounting and auditing, is a process for assuring of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. A broad ...
,
audit evidence Audit evidence is evidence obtained by auditors during a financial audit and recorded in the audit working papers. Audit evidence is required by auditors to determine if a company has correct information considering their financial statements. If ...
, using the work of other experts, audit conclusions and
audit report An auditor's report is a formal opinion, or disclaimer thereof, issued by either an internal auditor or an independent external auditor as a result of an internal or external audit, as an assurance service in order for the user to make decisions ...
s, and standards for specialized areas.


Use of the ISAs

* European Union: The Audit Directive of 17 May 2006 enforces the use of the ''International Standards on Auditing'' for all
Statutory audit An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing ...
s to be performed in the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
. The Audit Directive of 17 May 2006 is important in order to ensure a high quality for all statutory audits required by
Community law A community is a social unit (a group of living things) with commonality such as place, norms, religion, values, customs, or identity. Communities may share a sense of place situated in a given geographical area (e.g. a country, village, town ...
requiring all statutory audits be carried out on the basis of all international auditing standards. The Directive has given implementing powers to the
European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body ...
, in order to adopt "en bloc" the ISAs in accordance with the Council Decision of 28 June 1999, also known as the "Comitology Decision". * European Court of Auditors: the
European Court of Auditors The European Court of Auditors (ECA; French: ''Cour des comptes européenne'') is one of the seven institutions of the European Union (EU). It was established in 1975 in Luxembourg in order to improve EU financial management. It has 27 members ( ...
performs its audits in accordance with the IFAC and INTOSAI International Auditing Standards and Codes of Ethics, in so far as these are applicable in the
European Community The European Economic Community (EEC) was a regional organization created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisb ...
context. *The
United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoniz ...
Board of Auditors (the external audit of the UN) has adopted the ISAs although this Board is composed of three Supreme Audit Institutions chairmen, usually using the ''
INTOSAI The International Organization of Supreme Audit Institutions (INTOSAI) is an intergovernmental organization whose members are supreme audit institutions. Nearly every supreme audit institution in the world is a member of INTOSAI. Depending on t ...
Auditing Standards''.The INTOSAI Financial Audit Guidelines are based on the International Standards on Auditing (ISA) issued by the IAASB http://www.afrosai-e.org.za/HOME/Menu/TechnicalAdvancement/INTOSAIauditingstandards/tabid/82/Default.aspx


See also

*
External audit An external auditor performs an audit, in accordance with specific laws or rules, of the financial statements of a company, government entity, other legal entity, or organization, and is independent of the entity being audited. Users of these en ...
*
Internal audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to ...
*
International Organization of Supreme Audit Institutions The International Organization of Supreme Audit Institutions (INTOSAI) is an intergovernmental organization whose members are supreme audit institutions. Nearly every supreme audit institution in the world is a member of INTOSAI. Depending on t ...
*
Generally Accepted Auditing Standards Generally Accepted Auditing Standards, or GAAS are sets of standards against which the quality of audits are performed and may be judged. Several organizations have developed such sets of principles, which vary by territory. In the United States, ...
*
Financial reporting Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to un ...
*
International Financial Reporting Standards International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). They constitute a standardised way of describing the company's f ...
*
International Public Sector Accounting Standards International Public Sector Accounting Standards (IPSAS) are a set of accounting standards issued by the IPSAS Board for use by public sector entities around the world in the preparation of financial statements. These standards are based on Interna ...


Notes and references


"The Clarified Standards"
International Federation of Accountants.


External links


List of the Standards (ISAs)
at ifac.org
Institution for public sector audit standards
Auditing standards International standards