Corporate scams such as Enron in the (USA) Sathyam (India), and many others noticed recently, have made the corporate entities to have continuous monitoring of their accounting system. In global business, millions of dollars will be exchanging between the buyers and sellers. Businessmen at this level (global) will be transacting with certain ethics and belief. For any financial transaction or merger or acquisition at global level, the transacting parties will belong to different countries across the world. Particularly at the time of investment at the global level, investor would like to understand the financial status of a company which is functioning in a different country. This necessitates the investor to understand the accounting practices, their presentation of different elements of financial statements and to give an insight into the growth of the entity under study for investment. Study in terms of profit analysis, growth of assets and particularly to assess the intentions of the Board of Management is also required, because accounting practices and presentations of financial statements will be different across the world.
In order to bring the accounting practices under common methods, International Federation of Accountants – IFAC has prescribed accounting criteria such as International Financial Reporting Standards (IFRS) which has to be followed by members (who belong to different countries). Indian Accounting Body, Institute of Chartered Accountants of India (ICAI) is also a member of IFAC and gradually insisting Indian corporates to follow IFRS to smoothen the global business and maintenance of accounting records as per global standards.
Monitoring of accounting records conforming to the global standards and assess and evaluate them at the end of each financial year, auditing and assurance will take pace. IFAC has an affiliated organ called International Auditing and Assurance Board – IAASB, which develops and issues Standards and Statements on auditing, assurance and related services. These standards are adopted by member professional bodies of the world for ensuring credibility of accounting information of the business entities governed by respective member professional bodies like ICAI (In India). ICAI has adapted Auditing Standards of IAASB (and revised ones from time to time) under the caption Standards on Auditing (SAs).
Thus, in order to provide leveled playing field to investors and other intended users of financial statements of the business entities belonging to other countries, ICAI of India provides guidance notes to its members (CAs) to be strictly followed by them on various aspects of auditing and assurance.
In this backdrop, this work titled “International Auditing and Assurance” is prepared and presented to the students at degree level (B.Com, BBA etc.,) to have the basic knowledge on International Auditing. This title has 20 chapters covering various aspects of the said subject.
Contents –
1. International Auditing Framework
2. Regulatory Environment – External Audit
3. Mechanism to Control Auditors
4. Corporate Governance – I
5. Corporate Governance – II (Professional Ethics)
6. Independence of Auditors (Threats and Safeguards)
7. External and Internal Audit
8. Audit Engagement Issues
9. Internal Control
10. Audit Planning
11. Audit Risk Assessment in Planning
12. Key Ratios used in Analytical Procedures
13. Quality Control Procedures (SQC1)
14. Audit Evidence
15. Audit Sampling
16. Audit of Specific Items
17. Computer Assisted Audit Techniques
18. Auditor and Work of Others
19. Subsequent Events
20. Audit Finalisation and Review
