International standards on auditing (ISA) refer to a set of guidelines and principles that are globally recognized and adopted by professional auditing bodies and regulatory authorities for conducting high-quality audits of financial statements. These standards provide a framework for auditors to plan, execute, and report on their audit engagements, ensuring consistency, objectivity, and reliability in the auditing process.
The purpose of international standards on auditing is to promote uniformity and increase public trust in financial reporting by setting out best practices for auditors. These standards cover a wide range of areas, including the responsibilities of auditors, audit evidence, risk assessment, audit procedures, and reporting. They outline detailed procedures and requirements that auditors should follow and emphasize the need for professional judgment, integrity, and ethical conduct in performing their work.
By adhering to these standards, auditors can ensure that their audits are conducted with an appropriate level of professional skepticism, independence, and objectivity. Compliance with international standards on auditing also facilitates comparability of audited financial statements across different jurisdictions, improving transparency and enhancing the overall quality of financial reporting.
The International Auditing and Assurance Standards Board (IAASB) is the international body responsible for setting and issuing these standards. The ISA issued by IAASB are continuously updated and revised to reflect changes in accounting practices, emerging industry trends, and advancements in audit methodologies, ensuring their relevance and applicability in today's dynamic business environment.
