IFAC UPDATES AUDIT IMPLEMENTATION GUIDE FOR SMPs
(New York/November 10, 2011) – The Small and Medium Practices (SMP) Committee of the International Federation of Accountants (IFAC) released the third edition of its Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (ISA Guide). Intended to help practitioners understand and efficiently apply the clarified ISAs to audits of small- and medium- sized entities (SMEs), the updated guide features a number of refinements to the technical content and presentation.
“Practitioners in many jurisdictions have begun using the clarified ISAs, and effective implementation of these standards is key to audit quality,” said SMP Committee Chair Sylvie Voghel. “The ISA Guide should help practitioners conduct high-quality, cost-effective audits of SMEs, thereby contributing to the quality of the profession and our mission to serve the wider public interest.”
The comprehensive implementation guide offers a practical “how-to” approach for conducting risk-based audits of SMEs. First issued in 2007 and developed with the Canadian Institute of Chartered Accountants, it is designed for use by all practitioners, whether or not they are already familiar with the ISAs. Volume 1 covers the basic 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.
The updated ISA Guide can be downloaded free of charge from the SMP Publications and Resources area of the IFAC website. Filter by language to find translations of previous editions of the guide, which were conducted by member bodies and other organizations. Visit the Small and Medium Practices pages for access to additional relevant resources from IFAC and others (see Relevant Links—Implementation Resources). For access to the clarified ISAs, see the IAASB Clarity Center.
Note to all colleagues: Management urges all staff members that are involved with the audit division to go over the material and refresh their current information. This topic is considered to be the platform of risk based audits for small and medium practices.