International Auditing and Assurance Standards Board

1 International Auditing and Assurance Standards BoardHandbook of International Quality Control, Auditing ,Review, Other Assurance ,and Related ServicesPronouncements2018 EditionVolume I The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants or IFAC .The IAASB and IFAC do not accept responsibility for loss caused to any person who acts or refrains from acting in reliance on the material in this publication, whether such loss is caused by negligence or Standards on Auditing , International Standards on Assurance Engagements, International Standards on Review Engagements, International Standards on Related Services, International Standards on Quality Control, International Auditing Practice Notes, Exposure Drafts, Consultation Papers, and other IAASB publications are published by, and copyright of, December 2018 by IFAC.

2 All rights reserved. This publication may be downloaded for personal and non-commercial use ( , professional reference or research) or purchased from Written permission is required to translate, reproduce, store or transmit, or to make other similar uses of, this International Auditing and Assurance Standards Board , International Standards on Auditing , International Standards on Assurance Engagements , International Standards on Review Engagements , International Standards on Related Services , International Standards on Quality Control , International Auditing Practice Notes , IAASB , ISA , ISAE , ISRE , ISRS , ISQC , IAPN , and IAASB logo are trademarks of IFAC, or registered trademarks and service marks of IFAC in the US and other copyright, trademark, and permissions information, please go to permissions or contact Fifth Avenue, New York, NY 10017 T +1 (212) 286-9344 F +1 (212) 286-9570.

3 978-1-60815-389-3 Trademarks and Registered Trademarks and Service MarksInternational Auditing and Assurance Standards Board IAASB International Standards on Auditing International Standards on Assurance EngagementsTMInternational Standards on Review EngagementsTMInternational Standards on Related ServicesTMInternational Standards on Quality ControlTMInternational Auditing Practice NotesTMISA ISAETMISRETMISRSTMISRSTMISQNTMIAPNTMCoNT ENTS PART IHANDBOOK OF International QUALITY CONTROL, Auditing , REVIEW, OTHER Assurance , AND RELATED SERVICES PRONOUNCEMENTS PART ICONTENTSPageChanges of Substance from the 2017 Edition of the Handbook and Recent Developments .. 1 2 The International Federation of Accountants Role .. 3 Structure of Pronouncements Issued by the International Auditing and Assurance Standards Board .. 4 Preface to the International Quality Control, Auditing , Review, other Assurance , and Related Services Pronouncements.

4 5 9 Glossary of Terms .. 10 40 International Standards ON QUALITY CONTROL ISQC 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements and other Assurance and Related Services Engagements .. 41 75 AUDITS OF HISTORICAL FINANCIAL INFORMATION200 299 General PrinciPles and resPonsibilitiesISA 200, overall objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing .. 76 104 ISA 210, Agreeing the Terms of Audit Engagements .. 105 129 ISA 220, Quality Control for an Audit of Financial Statements .. 130 148 ISA 230, Audit Documentation .. 149 161 ISA 240, The Auditor s Responsibilities Relating to Fraud in an Audit of Financial Statements .. 162 205 ISA 250 ( revised ), Consideration of Laws and Regulations in an Audit of Financial Statements .. 206 224 ISA 260 ( revised ), Communication with Those Charged with 225 252 ISA 265, Communicating Deficiencies in Internal Control to Those Charged with Governance and Management.

5 253 264 HANDBOOK OF International QUALITY CONTROL, Auditing , REVIEW, OTHER Assurance , AND RELATED SERVICES PRONOUNCEMENTSPA RT I CoNTENTS PART I International Standards ON Auditing AND QUALITY CONTROL CONTENTS PART I300 499 risk assessment and resPonse to assessed risksISA 300, Planning an Audit of Financial Statements .. 265 277 isa 315 ( revised ), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment .. 278 333 ISA 320, Materiality in Planning and Performing an Audit .. 334 342 ISA 330, The Auditor s Responses to Assessed Risks .. 343 365 ISA 402, Audit Considerations Relating to an Entity Using a Service organization .. 366 388 ISA 450, Evaluation of Misstatements Identified during the Audit .. 389 401500 599 audit evidenceISA 500, Audit Evidence .. 402 418 ISA 501, Audit Evidence Specific Considerations for Selected Items.

6 419 429 ISA 505, External Confirmations .. 430 440 ISA 510, Initial Audit Engagements opening Balances .. 441 454 ISA 520, Analytical Procedures .. 455 462 ISA 530, Audit Sampling .. 463 479 ISA 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures .. 480 523 ISA 550, Related Parties .. 524 550 ISA 560, Subsequent Events .. 551 562 ISA 570 ( revised ), Going Concern .. 563 591 ISA 580, Written Representations .. 592 608600 699 usinG the Work of othersISA 600, Special Considerations Audits of Group Financial Statements (Including the Work of Component Auditors) .. 609 658 ISA 610 ( revised 2013), Using the Work of Internal Auditors .. 659 681 ISA 620, Using the Work of an Auditor s Expert .. 682 701700 799 audit conclusions and rePortinGISA 700 ( revised ), Forming an opinion and Reporting on Financial Statements.

7 702 755 ISA 701, Communicating Key Audit Matters in the Independent Auditor s Report .. 756 778 HANDBOOK OF International QUALITY CONTROL, Auditing , REVIEW, OTHER Assurance , AND RELATED SERVICES PRONOUNCEMENTSPA RT I CoNTENTS PART IISA 705 ( revised ), Modifications to the Opinion in the Independent Auditor s Report .. 779 810 ISA 706 ( revised ), Emphasis of Matter Paragraphs and other Matter Paragraphs in the Independent Auditor s Report .. 811 828 ISA 710, Comparative Information Corresponding Figures and Comparative Financial Statements .. 829 849 ISA 720 ( revised ), The Auditor s Responsibilities Relating to other Information .. 850 899800 899 sPecialized areasISA 800 ( revised ), Special Considerations Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks .. 900 923 ISA 805 ( revised ), Special Considerations Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement.

8 924 951 ISA 810 ( revised ), Engagements to Report on Summary Financial Statements .. 952 979international Auditing Practice notesIAPN 1000, Special Considerations in Auditing Financial Instruments .. 980 1042neW and revised Standards not Yet effectiveISA 540 ( revised ) Auditing Accounting Estimates and Related .. 1043 11461 CHANGES CHANGESCHANGES OF SUBSTANCE FROM THE 2017 EDITION OF THE HANDBOOK AND RECENT DEVELOPMENTSR eferencesThis handbook contains references to International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). Unless otherwise indicated, references to IASs and IFRSs are to the IASs and IFRSs in effect at the date of preparing a pronouncement. Accordingly, readers are cautioned that, where a revised IAS or IFRS has been issued subsequently, reference should be made to the most recent IAS or to country in this handbook should be read as country or jurisdiction.

9 Pronouncements Issued by the International Auditing and Assurance Standards BoardThis handbook contains the complete set of International Auditing and Assurance Standards Board s (IAASB) Standards on quality control, Auditing , review, other Assurance and related services, as well as the non-authoritative International Auditing Practice Notes (IAPN). It also includes a preface to the IAASB s pronouncements, a glossary of terms, and other non-authoritative material. This handbook replaces the 2017 edition of the and ChangesPart I of the HandbookRevision to ISA 250, Consideration of Laws and Regulations in an Audit of Financial Statements (NoCLAR)The following International Standard on Auditing (ISAs) has been added to replace an extant ISA in Part I of the handbook: ISA 250 ( revised ), Consideration of Laws and Regulations in an Audit of Financial changes were included, together with related conforming amendments, on pages 1071 1091 of Part I of the 2017 handbook.

10 The conforming changes have been made, as well as cross-referencing and other related changes, throughout the handbook for these revisions. Auditing Accounting Estimates and Related DisclosuresPart I of the Handbook includes the revised standard for changes to ISA 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures on pages 1043 1146. These amendments address an enhanced risk assessment process, a closer link to methods, data and assumptions in making accounting estimates, scalability considerations and an emphasis on the importance of professional oF SUBSTANCE FRoM THE 2017 EDITIoN oF THE HANDBooK AND RECENT DEVELoPMENTS CHANGESISA 540 ( revised ) becomes effective for audits of financial statements for periods beginning on or after December 15, 2019 . PrefaceThe preface has been renumbered from paragraph 8 to adjust to the correct numbering.