Small- and medium-sized practices (SMPs) may require practical support when implementing the International Standards on Auditing (ISAs) in audits of small- and medium-sized entities (SMEs). IFAC (International Federations of Accountants) has updated the Guide to Using ISAs in the Audits of SMEs, Fourth Edition (the Guide) to help firms efficiently and proportionally apply ISAs on SME audits.
This fourth edition is updated to reflect recent changes to the ISAs including International Auditing and Assurance Standards Board (IAASB) projects on:
- Auditor Reporting;
- The Auditor’s Responsibilities Relating to Other Information; and
- Using the Work of Internal Auditors.
The Guide is designed for use by all practitioners. Volume 1 covers the fundamental concepts of a risk-based audit in conformance with the ISAs. Volume 2 contains practical guidance on performing SME audits, including two illustrative case studies—one of an SME audit and one of a micro-entity audit.
Since it was first published in 2007, the Guide has been downloaded over 100,000 times and there are 22 translations completed or in progress. To help facilitate additional translations, IFAC Members can request a Word version of the Guide with tracked changes.
Many firms use the Guide for training purposes and as the basis for firm manuals. In order to help them and our member organizations maximize the Guide’s use, IFAC has also updated the Companion Manual which provides practical ‘best use’ suggestions for the Guide.
IFAC has a long history of developing implementation support for international standards. In addition to the Guide, the extensive suite of material includes:
- Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition
- Guide to Review Engagements
- Guide to Compilation Engagements
- Agreed-Upon Procedures (AUP) Engagements A Growth and Value Opportunity
- Choosing the Right Service: Comparing Audit, Review, Compilation, and Agreed-Upon Procedure Services
Source: IFAC News