Four 'new style' IAASB exposure drafts

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02 Nov 2005

The International Auditing and Assurance Standards Board (IAASB) has issued exposure drafts of four proposed International Standards on Auditing (ISAs) in a new drafting style.

The release of these documents marks the beginning of the IAASB's ambitious 18-month program to redraft its standards and to develop new standards using the new style. Key elements of the new drafting style include:

  • basing the standards on objectives, as opposed to procedural considerations;
  • use of the word 'shall' to identify requirements that must be followed;
  • eliminating the present tense to describe actions by the professional accountant, which some had regarded as ambiguous in terms of obligation; and
  • structural improvements to enhance the overall readability and understandability of the standards.
These are the four new EDs drafted in the new style:
  • ISA 240 (Redrafted) The Auditor's Responsibility to Consider Fraud in an Audit of Financial Statements.
  • ISA 300 (Redrafted) Planning an Audit of Financial Statements.
  • ISA 315 (Redrafted) Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement.
  • ISA 330 (Redrafted) The Auditor's Procedures in Response to Assessed Risks.
Comment deadline is 28 February 2006. The EDs may downloaded from IAASB's Website.
Click for IAASB Press Release (PDF 58k).


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