2017年-世界发展银行全球_Report_on_the_Observance_of_Standards_and_Codes_Accounting_and_Auditing___Module_A_-_Accounting_and_Auditing_Standards_A2_Auditing_Standards_Analysis_17页_343kb

Summary of the Report on the Observance of Standards & Codes (ROSC) Accounting & Auditing (A&A)

1. Introduction

The quality of financial reporting is heavily influenced by the quality of accounting and auditing standards. The purpose of the Auditing Standards Analysis is to compare national auditing standards with International Standards on Auditing (ISA) to identify significant differences and provide recommendations for improving national standards to align with international practices.

The analysis is necessary when:

• A country has developed its own auditing standards that are known to differ from ISA;
• The country uses an older version of ISA that has not been officially accepted;
• The country uses ISA as a basis but has made modifications or omissions to it.

If full and current ISA have been adopted without modification, the analysis is not required.

2. Approach for Assessing National Auditing Standards

ROSC A&A teams should:

• Complete a checklist to identify key differences between national standards and ISA.
• Prepare a schedule outlining the areas of divergence and assess their potential impact on audit quality and user understanding.
• Validate findings with the national standard-setter, local experts, and other technical counterparts.
• Include a summary of key differences in the ROSC A&A report, with guidance provided in the annex.

3. Checklist for Assessing Key Differences with ISA

A. Overview of National Auditing Standards

• Client continuance and ethical requirements including independence: Check if these are covered by national standards.
• Overall audit strategy: Check if this is included in national standards.
• Audit plan development: Check if this is addressed.
• Audit risk assessment procedures: Check if procedures related to the entity's environment and internal controls are included.
• Determining materiality: Check if this is covered.
• Nature, timing, and extent of audit procedures: Check if these are included.
• Direction, supervision, and review of audits: Check if these are covered.
• Sufficiency and appropriateness of audit evidence: Check if this is included.
• Documentation of audit evidence: Check if this is addressed.
• Quality control for assurance and related services: Check if ISQC 1 is adopted.

B. Communication with Those Charged with Governance

• Adoption of ISA 260: Check if ISA 260 is fully adopted or note the relevant national standard.
• Auditor objectives: Check if the objectives of communication with those charged with governance are defined.
• Matters to be communicated to those charged with governance:
  • Auditor's responsibility for forming an opinion.
  • Audit does not relieve management or governance of their responsibilities.
  • Audit scope and timing.
  • Addressing significant risks.
  • Auditor's approach to internal control.
  • Application of materiality.
  • Qualitative aspects of accounting practices.
  • Significant difficulties encountered.
  • Circumstances affecting the auditor's report.
• Requirements for communication: Check if communication form, timing, and content are defined. Check if matters are retained in audit documentation.

C. Forming an Opinion and Reporting on Financial Statements

• Adoption of ISA 700 (revised): Check if it is fully adopted or note the relevant national standard.
• Opinion requirements:
  • Opinion on financial statements being prepared in accordance with the applicable financial reporting framework.
  • Conclusion on reasonable assurance.
  • Based on sufficient audit evidence.
  • Consideration of uncorrected misstatements.
  • Evaluation of qualitative aspects of accounting practices.
  • Assessment of accounting policies and estimates.
  • Evaluation of relevance, reliability, comparability, and understandability of financial statements.
  • Expression of unmodified opinion if financial statements are free from material misstatement.

D. Communicating Key Audit Matters

• Adoption of ISA 701: Check if it is fully adopted or note the relevant national standard.
• Key audit matters:
  • Existence of the concept.
  • Selection based on higher risk areas or significant risks.
  • Inclusion of significant management judgments.
  • Effects of significant events or transactions.
  • Determination by the auditor of significant matters.
• Communication requirements:
  • Use of appropriate subheadings for each key audit matter.
  • Reference to relevant disclosures.
  • Statement that the matters were addressed in the context of the audit.
  • Statement on why a matter was considered significant.
  • Description of how the matter was addressed.
  • Statement if a key audit matter was not included due to legal or public interest reasons.

E. Modifications to the Audit Opinion

• Adoption of ISA 705 (revised): Check if it is fully adopted or note the relevant national standard.
• Modification requirements:
  • If financial statements are not free from material misstatement.
  • If sufficient audit evidence cannot be obtained.
• Qualified opinion criteria:
  • Misstatements are material but not pervasive.
  • Insufficient audit evidence, but possible effects are material but not pervasive.
• Adverse opinion and disclaimer requirements:
  • If misstatements are both material and pervasive.
  • If undetected misstatements could be both material and pervasive.
  • Description of the modification in the basis of opinion section.

F. Emphasis of Matter and Other Matter Paragraphs

• Adoption of ISA 706 (revised): Check if it is fully adopted or note the relevant national standard.
• Emphasis of matter paragraph:
  • Existence of the concept.
  • No modification to the opinion required.
  • Not a key audit matter.
  • Reference to relevant disclosures.
  • Refers only to information presented in the financial statements.
• Other matter paragraph:
  • Existence of the concept.
  • Not prohibited by law or regulation.
  • Not a key audit matter.

4. Annex: Reporting on Differences Between National Auditing Standards and ISA

• After completing the questionnaires, teams should:
  • Prepare a schedule of key differences between national standards and ISA.
  • Describe each difference and its potential impact on user understanding.
  • Discuss findings with the national standard-setter and local experts.
  • Include a summary of key differences in the ROSC A&A report.
  • Consider including a detailed table in an annex if multiple differences are identified.
  • Include comments from the national standard-setter and rationale for differences in the narrative.