Case 2

International standards on Auditing (ISAs) are issued by the International

Auditing and Assurance Standards Board (IAASB). Use the IAASB Web site to learn
more about the IAASB and its standard-setting activities.
a. What is the objective of the IAASB? Who uses International Standards on
Auditing?
The International Auditing and Assurance Standards Board (IAASB)s
objective is to be able to set high-quality auditing and assurance
standards and provide better service to its consumers. The IAASB also
helps in the uniformity of auditing and assurance standards internationally
for the improvement of quality in the services rendered.
b. Summarize the due process followed by the IAASB in setting standards.
The IAASB assigns a department to establish draft standards or
practices that could further enhance the quality of auditing standards.
These drafts are made through thorough research and consultation. These
standards are then further discussed in the IAASB meeting, which is open
for public view. It is also shown to the public for their feedback. The
feedback is used to revise or change the issue that needs to be changed
in the standard draft. The revised draft is then showed to the public once
again for collection of opinions regarding the draft or if it is needed to be
changed yet again. For the draft to be approved, two-thirds of the
members are needed.
c. How is the IAASB committed to transparency in the standard-setting
process?
The IAASB posts information on the projects they are currently working
on, as well as the projects they have done in the past. They also provide in
their website the drafts they have formulated as well as the comments
and feedbacks related to those drafts. Information regarding the meeting
such as agendas, minutes and recordings are also made open to the
public to see. Attached to the website are reports, programs, and
strategies of the IAASB are posted there as well.