Dear Member
APPLICABILITY OF THE CLARIFIED ISAs
In 2004, the IAASB began a comprehensive programme to enhance the clarity of International Standards on Auditing (ISAs). The aim of the project was to enhance the understandability of the ISAs, which should encourage consistent application and lead to an improvement in audit quality worldwide. The final set of clarified standards comprises of 36 ISAs and the International Standard on Quality Control (ISQC) 1, including:
- one (1) new standard, addressing communication of deficiencies in internal control;
- sixteen (16) standards containing new and revised requirements (these have been referred to as “revised and redrafted ISAs”); and
- twenty (20) standards that have been redrafted to apply the new conventions and reflect matters of general clarity only (these have been referred to as “redrafted ISAs and redrafted ISQC 1”).
It should be noted that the IAASB has made all the clarified ISAs effective for audits of financial statements for periods beginning on or after December 15, 2009. However, with regard to applicability of the clarified ISAs in Pakistan members are informed that the matter is at present being deliberated by an appropriate Committee of the Institute therefore the Council in its 221st meeting held on November 6, 2010 has decided to defer the application of the clarified ISAs for audits of financial statements for the year ended December 31, 2010.
However, in the meantime, the Council wishes to encourage practicing members to conduct the audits in accordance with the clarified ISAs to the maximum extent possible.