IAASB issues three exposure drafts
20 Nov 2006
The International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), has issued three exposure drafts of proposed International Standards on Auditing (ISAs) that follow its new clarity drafting conventions.
Key elements of those drafting conventions include basing the standards on objectives, as opposed to procedural considerations; using the word 'shall' to identify requirements that the professional accountant is expected to follow in the vast majority of engagements; eliminating the present tense to describe actions by the professional accountant; and structural improvements to enhance the overall readability and understandability of the standards. The three new EDs are:
- ISA 320 (Revised and Redrafted), Materiality in Planning and Performing an Audit;
- ISA 450 (Redrafted), Evaluation of Misstatements Identified during the Audit; and
- ISA 260 (Revised and Redrafted), Communication with Those Charged with Governance.
