INTERNATIONAL STANDARD ON AUDITING 260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE (Effective for audits of financial statements

for periods beginning on or after December 15, 2009)

Summary:

ISA

doesnt

establish

for

the

requirements

regarding

the

auditors

communications with an entitys management. When ISA charged with governance ISA have the responsibility to oversee the preparation of other historical financial information. In an audit of financial statement the effective tow way communication in ISA provides overreaching framework for auditors. In ISA communication is very useful tool for the auditors. Communication with ISAs is an integral part of every audit. In some circumstances the auditor may consider legal advice. The information should be relevant to the audit with those charged with governance. The timely observation is very compulsory to arising from the audit that significant to their responsibility.

INTERNATIONAL STANDARD ON AUDITING 265 COMMUNICATING DEFICIENCIES IN INTERNAL CONTROL TO THOSE CHARGED WITH GOVERNANCE AND MANAGEMENT (Effective for audits of financial statements for periods Beginning on or after December 15, 2009) Summary:

This

ISA does not impose additional responsibilities on the auditor regarding

obtaining an understanding of internal control and designing. In this ISA the auditor considers internal control in order to design audit procedures that are appropriate in the circumstances. In this (ISA) the auditor shall determine whether, on the basis of the audit work performed, the auditor has identified one or more deficiencies in internal control. The auditor shall also communicate to management at an appropriate level of responsibility on a timely basis. In this ISA that discussing the facts and circumstances of the auditors findings with management, the auditor may obtain other relevant information for further consideration. In this (ISA) communicating significant deficiencies in writing to those charged with governance reflects the importance of these matters, and assists those charged with governance in fulfilling their oversight responsibilities. Public sector auditors may have additional responsibilities to communicate deficiencies in internal control that the auditor has identified during the audit, in ways, at a level of detail and to parties not envisaged in this (ISA).

INTERNATIONAL STANDARD ON AUDITING 300 PLANNING AN AUDIT OF FINANCIAL STATEMENTS (Effective for audits of financial statements for periods Beginning on or after December 15, 2009)

Summary:

This (ISA) helped to make strategy and engagement and developing an audit plan and these adequate planning benefits the audit of financial system in several ways. Assisting in the selection of engagement team members with appropriate levels of capabilities and competence to respond to anticipated risks, and the proper assignment of work to them.

In this (ISA) nature, timing and extent of the direction and supervision of engagement team members and review of their work very depending on size and complexity of the entity, and area of the audit.

The documentation of the audit plan is a record of the planned nature, timing and extent of risk assessment procedures and further audit procedures at the assertion level in response to the assessed risks.

In this (ISA) other procedures required by the firms system of quality control for initial audit engagements. In this (ISA) the characteristics of the engagement are the financial reporting framework, industry specific reporting, expected audit coverage, the nature of the business segment to be audited.

INTERNATIONAL STANDARD ON AUDITING 315 IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT (Effective for audits of financial statements for periods beginning on or after December 15, 2009)

Summary:

Scope of this international standard on auditing deals with the auditors responsibility to identify and assess the risk of material misstatement in the financial statements.

In this (ISA) the objective of the auditor is to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels, through understanding the entity and its environment.

In this international standard on auditing the auditor shall perform risk assessment procedures to provide a basis for the identification and assessment of risks of material misstatement at the financial statement and assertion levels.

The auditor shall identify and assess the risks of material misstatement at the financial statement level and the assertion level for classes of transactions, account balances, and disclosures.

An understanding of internal control assists the auditor in identifying types of potential misstatements and factors that affect the risks of material misstatement, and in designing the nature, timing and extent of further audit procedures.

The division of internal control into the following five components, for purposes of the ISAs, provides a useful framework for auditors to consider how different

aspects of an entitys internal control may affect the audit, the control environment, the entitys risk assessment process.

INTERNATIONAL STANDARD ON AUDITING 320 MATERIALITY IN PLANNING AND PERFORMINGAN AUDIT (Effective for audits of financial statements for periods beginning on or after December 15, 2009) Summary:
This International Standard on Auditing (ISA) deals with the auditors responsibility to apply the concept of materiality in planning and performing an audit of financial statements. ISA 450 explains how materiality is applied in evaluating the effect of identified misstatements on the audit and of uncorrected misstatements, if any, on the financial statements. Judgments about materiality are made in light of surrounding circumstances, and are affected by the size or nature of a misstatement, or a combination of both. Misstatements, including omissions, are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements; This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009. The objective of the auditor is to apply the concept of materiality appropriately in planning and performing the audit.

INTERNATIONAL STANDARD ON AUDITING 330 THE AUDITORS RESPONSES TO ASSESSED RISKS (Effective for audits of financial statements for periods Beginning on or after December 15, 2009) SUMMARY:
This International Standard on Auditing (ISA) deals with the auditors responsibility to design and implement responses to the risks of material misstatement identified and assessed by the auditor in accordance with ISA 315 in an audit of financial statements. This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009. The objectives of this standard: (a) Substantive procedure An audit procedure designed to detect material misstatements at the assertion level. Substantive procedures comprise: (i) Tests of details (of classes of transactions, account balances, and disclosures); and (ii) Substantive analytical procedures. (b) Test of controls An audit procedure designed to evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level.