ISAE stands for "Internationally Standardized Assurance Engagements," which refers to a set of globally recognized principles and guidelines for conducting assurance engagements.
ISAE provides a framework for auditors and accounting professionals to perform various assurance engagements, including assurance on financial statements, internal controls, sustainability reporting, and other forms of financial and non-financial information. This framework ensures consistency, reliability, and comparability of assurance engagements across different countries and jurisdictions.
The key objective of ISAE is to enhance the credibility and trustworthiness of the information that is being assured. It lays down principles and procedures that practitioners must adhere to when conducting such engagements. ISAE also requires auditors to exercise professional judgment, maintain independence, and perform their work diligently, competently, and with due care.
By following ISAE, assurance practitioners can evaluate whether the subject matter being assessed complies with relevant criteria, such as financial reporting standards or sustainability frameworks. The assurance report issued under ISAE provides users with reasonable assurance or limited assurance about the accuracy, completeness, and fairness of the subject matter.
ISAE is issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting body that operates under the auspices of the International Federation of Accountants (IFAC). This ensures that ISAE is globally recognized and adopted, promoting consistency and uniformity in the field of assurance engagements worldwide.
