Development and Convergence of
Auditing Standards and
Methodology
EUROSAI Seminar on Financial Audit Standards
October 2008
Deputy Director General Kelly Ånerud
Technical Advisor, IAASB
INTOSAI’s Professional Standards Committee
INCOSAI
INTOSAI Governing Board
INTOSAI Professional Standards Committee
(Denmark)
Accounting
Standards &
Reporting
(Canada)
Financial Audit
Guidelines
(Sweden)
Internal control
Standards
(Belgium)
Compliance
Audit (Norway)
Performance
Audit (Brazil)
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INTOSAIs Framework of Standards
International Standards for Supreme Audit
Institutions (ISSAI)
Description
Documents
Founding Principles
•Lima Declaration
Prerequisites for the
Functioning of SAIs
•Code of Ethics
•Independence
Fundamental Auditing
Principles
•Auditing Standards
Auditing Guidelines
•Financial audit
•Compliance audit
•Performance audit
Guidance for
Good
Governance
(GOV)
•Guidance on
Internal Control
Standards
•Guidance on
Accounting
Standards
www.issai.org
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International Standards
+
International
Standard on
Auditing
=
Practice
Note
International
Standards of
Supreme Audit
Institutions
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Development of Standards and Guidelines
INTOSAI & IFAC
IAASB
PSC
INCOSAI
Issues paper
INTOSAI Governing Board
INTOSAInominated
member & TA
First read
INTOSAI Professional Standards
Committee
Exposure draft
Accounting
Standards &
Reporting
Internal control
Standards
Performance
Audit
Compliance
Audit
Financial Audit
Guidelines
Project Director &
Project Secretariat
Focus
Group
Reference
Panel
INTOSAI ”Practice Note”
Review of comments
Final ISA
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IAASB’s Clarity Project
• Based on findings in IFAC report from 2004 – ”Rebuilding Public
Confidence in Financial Reporting”
• EU’s need for international auditing standards
• All ISAs redrafted based on Clarity drafting conventions
• New structure:
• Introduction
• Objective
• Requirements (use of ’shall’)
• Application Material
Clarity - 2008
• (Definitions if necessary)
INTOSAI - 2010
• Drafting techniques (bullet lists,
considerations for SMEs
and public sector entities)
• INTOSAI’s Clarity Review Group
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Audit Standard Setting - Value Circle
Monitoring
implementation
Development
and updating
Implementation
and training
Communication with stakeholders
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List of Acronyms
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CAG – IAASB’s Consultative Advisory Group
CAS – INTOSAI’s Compliance Audit Subcommittee
COSO – Committee of Sponsoring Organizations of the Treadway Commission
(internal control framework)
FAS – INTOSAI’s Financial Audit Guidelines Subcommittee
IAASB – International Auditing and Assurance Standards Board
IASB – International Accounting Standards Board
IC – Internal Control
IFAC – International Federation of Accountants
INCOSAI –INTOSAI’s Congress – held every 3 years
INTOSAI – International Organization of Supreme Audit Institutions
ISA – International Standard on Auditing
ISQC – International Standard on Quality Control
ISSAI – International Standards for Supreme Audit Institutions
PAS – INTOSAI’s Performance Audit Subcommittee
PCAOB – Public Company Accounting Oversight Board
PN – Practice Note
PSC – INTOSAI’s Professional Standards Committee
SAI – Supreme Audit Institution
SET – INTOSAI Special Expert Team
SME – Small and medium sized entity
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