We comment on two IAASB proposals
20 Dec 2007
Deloitte has recently submitted letters of comment to the International Auditing and Assurance Standards Board (IAASB) on two proposed International Standards on Auditing:
- ISA 510 (Redrafted) Initial Audit Engagements – Opening Balances (PDF 29k).We are supportive of the proposed guidance in redrafted ISA 510 and believe that the overall drafting was completed in accordance with the clarity conventions and criteria adopted by IAASB.
- ISA 530 (Redrafted) Audit Sampling (PDF 45k). We express serious concerns about the redrafted ISA 530 regarding (1) the exclusion of certain 'anomalies' when projecting misstatements in samples to the population as a whole and (2) the required approach to evaluating sample results. We note that while these comments go beyond clarity matters, we believe that they relate to current practice problems and that their significance warrants the IAASB's consideration at this time.
You will find our past comments to the IAASB Here.