INTERNATIONAL STANDARD ON AUDITING 200

OBJECTIVE AND GENERAL PRINCIPLES GOVERNING AN AUDIT OF FINANCIAL STATEMENTS

The purpose of this International Standard on Auditing (ISA) is to establish standards and provide guidance on the objective and general principles governing an audit of financial statements.

It also describes management’s responsibility for the preparation and presentation of the financial statements and for identifying the financial reporting framework to be used in preparing the financial statements.

There are several key elements to ISA 200:

·         Objectives that clearly state the overall objectives of the auditor;

·         Definitions that clarify key terms relevant to auditing generally; and

·         Requirements that set out the conduct of an audit.

INTERNATIONAL STANDARD ON AUDITING 300

PLANNING AN AUDIT OF FINANCIAL STATEMENTS

The purpose of this International Standard on Auditing (ISA) is to establish standards and provide guidance on the considerations and activities applicable to planning an audit of financial statements. This ISA is framed in the context of recurring audits.

Planning an audit involves establishing the overall audit strategy for the engagement and developing an audit plan, in order to reduce audit risk to an acceptably low level. Planning involves the engagement partner and other key members of the engagement team to benefit from their experience and insight and to enhance the effectiveness and efficiency of the planning process.