NEW YORK- The International Auditing and Assurance Standards Board (IAASB) on February 1, 2008 , agreed to amend the following International Standards on Review Engagements (ISREs) to clarify to which engagements each respectively is to be applied:
ISRE 2400, Engagements to Review Financial Statements; and
ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity.
The issue that had been brought to the IAASB's attention is that ISRE 2410 applies in the case of a review by the entity's auditor of interim financial information only, while ISRE 2400 applies to all reviews of historical financial information excluding those conducted by the entity's auditor. Thus, there would appear to be no directly relevant standard for reviews by the entity's auditor of historical financial information other than interim financial information.
IAASB Chairman John Kellas noted "these minor amendments, which are effective immediately, clarify the application of the ISREs and ISAE 3000 by eliminating a small gap in the apparent scope of the ISREs and ensuring that, as intended, there is no overlap in the scopes of the ISREs and ISAE 3000. As a result, practitioners will have no doubt about which standard is to be applied to a review engagement,"
IAASB is an independent standard setting board within the IFAC. Its objective is to serve the public interest by setting high quality standards on auditing, quality control, review, other assurance and related services.
For more information please visit the following website: www.ifac.org