KARACHI (June 03, 2010) – In 2009 International Auditing and Assurance Standards Board (IAASB) completed its Clarity Project regarding the International Standards on Auditing (ISAs). In view of the significance of the subject and its impact on the auditing profession in Pakistan, the Southern Regional Committee of the Institute of Chartered Accountants Pakistan recently organized a seminar to present the key changes made to the ISAs as a result of the Clarity Project.
Farrukh Rehman, Partner A F. Ferguson & Co, speaker at the seminar explained that a new set of International Standards on Auditing (ISAs) will apply to all audits of financial statements for periods beginning on or after 15 December 2009.
All existing ISAs have been changed to varying degrees, with two new standards. In addition, International Standard on Quality Control 1 has been redrafted. The aim was to clarify an auditor’s objectives and obligations, eliminate ambiguity regarding requirements, and make the ISAs more understandable.
He further commented that IAASB also undertook a number of significant revisions to core standards. It is now incumbent upon the auditing profession to understand and apply these new clarified ISAs to their audits of financial statements.
The Session Chairman Amir Jamil Abbasi, FCA, Partner, KPMG Taseer Hadi & Co. in his speech shared his thoughts on the topic. He said that the presentation made by Mr. Farrukh Rehman highlights that the importance of training across the auditor fraternity and its discourse to the companies’ managements as to how the new requirements will affect them.