New Clarified ISAs are an opportunity to improve audit quality

As the Auditing Practices Board (APB) today updates UK and Irish auditing standards for the new, clarified International Standards on Auditing (ISAs) the ICAEW sees this move as an opportunity to improve audit quality.

Gerry Murphy, chairman of the ICAEW’s Audit and Assurance Faculty, said:

“We see the implementation of the clarified ISAs as a timely opportunity for audit quality to be enhanced. This is particularly important in the current economic and political climate. Under the new standards auditors will be provided with the tools they need to be more robust in addressing key audit areas such as group audits, related parties and the management override of controls, and to fully exercise an appropriate level of professional scepticism to all audit areas.

Martyn Jones, Chairman of ICAEW’s ISA Implementation Sub-group, said:

“We have been working hard to help ensure that auditors implement clarified ISAs robustly but in a manner which is proportionate to the size and complexity of the entities they are auditing, focussing on meeting the objectives of standards rather than merely ticking boxes. A raft of faculty publications, including the latest 10-module Right First Time with the Clarified ISAs document, together with roadshows, meetings and other communications with practitioners and providers of training, software and methodologies, will help ensure that all concerned are ready for this change.

“We urge providers of training, software and methodologies to take an active part in helping smaller firms improve audit quality in implementing clarified ISAs. Failure to do so would create resistance to effective regulation which would be particularly unfortunate in the current economic climate. The all-important implementation process must minimise unnecessary costs, particularly in the area of audit documentation, especially for smaller firms, and maximise audit efficiency, effectiveness and overall audit quality.”

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Contact Heather Coath, ICAEW press office, on 0207 920 8650, 07715 496493, or email heather.coath@icaew.com