Page 39 - DCOM509_ADVANCED_AUDITING

Advanced Auditing

Notes  IFRS is a dynamic — and fast evolving — issue. To keep current with developments
regarding global accounting standards, the following websites include information about
the development of IFRS, the convergence efforts between the FASB and the IASB, and the
acceptance of IFRS around the world.
 Again, it has to be remembered that GAAP are not a rigid set of rules. These are flexible
guidelines only.
 Over the years, these groups of conventions and standards have evolved in the specific
need of standard common platform for the preparation and presentation of financial
statements.

 In United States, the American Institute of Certified Public Accountants (AICPA), The
Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission
(SEC) offer guidance and assistance about standard acceptable practices of accounting.

2.6 Keywords

Audit: An official inspection of an individual's or organization's accounts, typically by an
independent body.
Auditing Standards: The mandatory examination procedures to be executed during an audit to
ensure consistency of findings..
GAAP: Generally Accepted Accounting Principles (GAAP) is defined as the standard guidelines
of accounting rules for financial accounting and to prepare financial statements for private
companies and the companies trading publicly in United States.

ISAE: International Standards on Assurance Engagements..
ISQC: Standards on Quality Control.
ISRE: International Standards on Review Engagements.
ISRS: International Standards on Related Services.
Quality: The standard of something as measured against other things of a similar kind.

2.7 Review Questions

1. What do you mean by Indian Auditing Standards?
2. Discuss the importance or relevance of Auditing standards.
3. Explain the concept of IFRS. What are the basic principles or standards of IFRS?

4. How auditing standards set in India?
5. The new standards to be issued by the AASB henceforth, are to be collectively known as
‘Engagement Standards’ and comprise of few things. What are they?

6. Discuss the procedure for formulating Auditing Standards.
7. Give a briefing of particulars of changes Audit.
8. Explain the evolution of Auditing Standards.

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