ASCA Jordan

In this regard, Dr. Abu-Ghazaleh outlined the most important amendments in this version as follows: 

• 1-ISA 315 (Revised 2019) “Identifying and Assessing the Risks of Material Misstatement” has been incorporated into the 2021 IAASB Handbook.
• 2-The following standards, which are not yet effective, have been included in this edition-

• ISQM 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements
• ISQM 2, Engagement Quality Reviews
• ISA 220 (Revised), Quality Management for an Audit of Financial Statements
• Conforming and Consequential Amendments to Other ISAs Arising from the Quality Management Projects
• ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)
• Conforming and Consequential Amendments to Other International Standards Arising from ISA 600 (Revised) 

The most important amendments in the 2021 version as follows,
1.ISA 540 (revised), Auditing Accounting Estimates and Related Disclosures, to supersede the previous ISA 540;
2.Confirming amendments to the standards of the IAASB as a result of revising the code of ethics of professional accountants issued by the IESBA;
3.Volume 1 and 2 of the IAASB handbook included the amendments arising from the confirming and subsequent amendments to the code of ethics of professional accountants that were restructured and issued by the International Ethics Standards Board for Accountants (IESBA).

The standards that were included but not yet effective:-
1.ISA 315 (revised), identifying and assessing the risks of material misstatement;
2.Conforming and consequential amendments to other international auditing standards arising from ISA 315 (revised);
3.ISQM 1, quality management for firms that perform audits or reviews of financial statements, or other assurance or related services engagements, as this standard addresses the firm’s responsibility to design, implement, and operate a system of quality management relevant to audits or reviews of financial statements, or other assurance or related services engagements.
4.ISQM 2, engagement quality reviews, which addresses the appointment and eligibility of the engagement quality reviewer, and the engagement quality reviewer’s responsibilities relating to the performance and documentation of an engagement quality review.
• ISA 220 (revised), quality management for an audit of financial statements; 
• Conforming and consequential amendments to other international auditing standards arising from the quality management projects;
• ISRS 4400 (revised), agreed-upon procedures engagements.

This edition includes
 • ISA 250 (Revised), Consideration of Laws and Regulations in an Audit of Financial Statements.

These changes were included, together with related conforming amendments. The conforming changes have been made, as well as cross-referencing and other related changes, throughout the handbook for these revisions.

• ISA 540 (Revised) , Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures. 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 skepticism.

  ISA 540 (Revised) becomes effective for audits of financial statements for periods beginning on or after December 15, 2019.

The most important changes of the 2016-2017 version are the changes in the operations and audit reports issued by the International Auditing and Assurance Standards Board (IAASB).

(A) Add the following standards to enhance the communicative value of the auditor’s report:
• ISA 260 (Revised), Communication with Those Charged With Governance;
• ISA 570 (Revised), Going Concern;
• ISA 700 (Revised), Forming an Opinion and Reporting on the Financial Statements;
• ISA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report; and
• ISA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report.

(B) In addition, the following standards have been revised for limited amendments as a result of the new and revised standards in the Auditor Reporting project (ISA 800 (Revised), ISA 805 (Revised), ISA 810 (Revised).

(C) Changes to certain number of ISAs as a result of the Disclosures project. The changes to the ISAs addressing disclosures are effective for audits of financial statements for periods ending on or after December 15, 2016.

(D) Part I of the Handbook includes to the Consideration of Laws and Regulations in an Audit of Financial Statements in response to the new requirements addressing non-compliance with laws and regulations (NOCLAR) in the International Ethics Standards Board for Accountants Code of Ethics for Accountants.  These amendments address actual or perceived inconsistencies of the scope of laws and regulations and approach to identifying and dealing with NOCLAR.

The most important changes of the 2015 version are the changes in the operations and audit reports issued by the International Auditing and Assurance Standards Board (IAASB).

The following standards have been amended to enhance the communicative value of the auditor’s report:
• ISA 260 (Revised), Communication with Those Charged With Governance;
• ISA 570 (Revised), Going Concern;
• ISA 700 (Revised), Forming an Opinion and Reporting on the Financial Statements;
• ISA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report; and
• ISA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report.

As regards the ISAs that aim at focusing auditors on disclosures throughout the financial statement audit, the changes include:
• Strengthened requirements in ISAs 315,330 and 700.
• Enhanced application material in these and several other ISAs to more explicitly address disclosures.

Also, International Standard on Assurance Engagements (ISAE) 3000 has been replaced with ISAE 3000 (Revised), “Assurance Engagements Other than Audits or Reviews of Historical Financial Information”, which is effective for assurance reports dated on or after December 15, 2014. The framework of the International Standards on Assurance Engagements has been also replaced with the International Standards on Assurance Engagements as amended in the handbook supplement.

To read volume I
           volume II
           volume III
           Code Of Ethics

Part II of the handbook includes the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information. ISAE 3000 (Revised) includes requirements, application materials and other explanatory material specific to reasonable and limited assurance attestation engagements, as well as the conforming amendments with other International Standards on Assurance Engagements.

This edition also includes an annex entitled “A Framework for Audit Quality: Key Elements that Create an Environment for Audit Quality. This framework describes the input, process and output factors that contribute to audit quality at the engagement, audit firm and national levels, for financial statement audits. The Framework also demonstrates the importance of appropriate interactions among stakeholders and the importance of various contextual factors.

The IAASB believes that such a Framework is in the public interest as it will:
• Encourage national audit firms, international networks of audit firms, and professional accountancy organizations to reflect on how to   improve audit quality and better communicate information about audit quality;
• Raise the level of awareness and understanding among stakeholders of the important elements of audit quality;
• Enable stakeholders to recognize those factors that may deserve priority attention to enhance audit quality.
• Assist standard setting, both internationally and at a national level.
• Facilitate dialogue and closer working relationships between the IAASB and key stakeholders as well as among these key stakeholders   themselves;
• Assist students of auditing to more fully understand the fundamentals of the profession they are aspiring to join.

The 2013 handbook contains two new standards:- 

• International Standard on Auditing (ISA) 610 (Revised 2013) as well as the amendments conforming to other International Standards on Auditing. This standard includes requirements and guidance addressing the external auditor’s responsibilities if using internal auditors to provide direct assistance under the direction, supervision and review of the external auditor for purposes of the audit, where such assistance is not prohibited by law or regulation. 

·       (ISRE) 2400 (Revised). This revised standard deals with the practitioner’s responsibilities when engaged to perform a review of historical financial statements, when the practitioner is not the auditor of the entity’s financial statements, and the form and content of the practitioner’s report on the financial statements.  

The following standards have been withdrawn:- 

• ISA 610, Using the Work of Internal Auditors, replaced with ISA 610 (Revised), Using the Work of Internal Auditors, 
• ISA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, replaced with ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, 
• ISRS 4410, Engagements to Compile Financial Information, replaced with International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements. 

In addition to the changes made to the code of conduct regarding a breach of a requirement of the code, conflict of interests and definition of “Engagement Team” in the code. 

The Handbook consists of:

1. The International Auditing Practice Note (IAPN) 1000, Special Considerations in Auditing Financial Instruments, issued in December 2011. IAPN 1000 provides important practical assistance to auditors when addressing valuation and other considerations pertaining to financial instruments.

2. The International Standard on Assurance Engagements (ISAE) 3420, Assurance Engagements on Greenhouse Gas Statements, issued in June 2012. This new standard deals with both limited assurance and reasonable assurance engagements undertaken by a practitioner to report on an entity’s greenhouse gas statement. The ISAE can be applied to greenhouse gas statements prepared

3. The International Standard on Assurance Engagements (ISAE) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus, issued by the IAASB in December 2011. The ISAE applies where such reporting is required by securities law or the regulation of the securities exchange in the jurisdiction in which the prospectus is to be issued, or this reporting is generally accepted practice in such jurisdiction.

4. The International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements, issued by the IAASB in March 2012. This Standard is a revision of ISRS 4410, Engagements to Compile Financial Information,

5. This Handbook also addresses several revised and redrafted standards such as the ISA 610 (Revised), ISA 315 (Revised) and Conforming Amendments

The handbook comprises the following:-

•  The International Standard on Assurance Engagements (ISAE) 3402, “Assurance Reports on Controls at a Service Organization” issued by the IAASB in December 2009. This new Standard addresses reports on the description, design, and operating effectiveness of controls reating to the broad range of services that today’s service organizations provide. Such services can range from assisting with processing transactions to performing one or more business functions. ISAE 3402 is effective for service auditors’ reports covering periods ending on or after June 15, 2011.
• Code of Ethics for Professional Accountants
• This handbook replaces Part I of the 2008 edition of the Handbook of International Auditing, Assurance and Ethics Pronouncements and the 2009 edition of the Handbook of International Standards on Auditing and Quality Control which featured the thirty six International Standards on Auditing (ISAs) and the International Standard on Quality Control (ISQC) that have been redrafted by the IAASB to improve their clarity. 

To read part 1 click here. 

To read part 2 click here.

To read Code of Ethics click here.

The first Arabic 2009 edition of the International Standards on Auditing and Quality Control handbook, after being updated to include the quality control standards.

The handbook comprises the following:-

•  
• All international standards on auditing redrafted for clarification purposes.
• The redrafted International Standard on Quality Control 1, glossary of terms and introduction, all to be effective starting from December 15, 2009.
  

This new edition of the handbook also includes nine International Accounting Standards which were redrafted and issued by the IAASB on January 1, 2008. It replaces the second part of 2008 edition of the International Standards on Audit Engagements and Assurance and the Code of Ethics issued by the International Federation of Accountants (IFAC).

As a result, auditors all over the world will are able to access 36 updated and clarified International Standards on Auditing and Quality Control. These standards were designed to enhance comprehension, applicability and translatability. The clarified standards included in this handbook are considered useful in auditing financial statements for periods beginning on or after December 15, 2009.

In addition, the Board announced the completion of “Clarity Project” in March 2009. The eighteen-month program consisted of a comprehensive review of all International Standards on Auditing and the International Standards on Quality Control for further explanation (“Clarity Project”).

ASCA -Jordan continuously seeks to develop both accounting and management sciences, as well as all related principles applicable to all or some professional services. ASCA -Jordan also exerts dedicated  efforts to upgrade the competence, practice and Code of Ethics according to the highest professional levels through the issuance of accounting publications and following-up on the recent developments in accounting and auditing.

Part I
It includes information about the International Federation of Accountants (IFAC), the Code of Ethics, Auditing, Review, Other Assurance, and Related Services

Part II
It includes information about the “Clarity Project” of the International Auditing and Assurance Standards Board (IAASB) and an amended preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services, in addition to the following redrafted standards:-

• ISA 230 (Redrafted), “Audit Documentation”
• ISA 260 (Revised and Redrafted), “Communication with Those Charged with Governance”
• ISA 540 (Revised and Redrafted), “Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures”
• ISA 600 (Revised and Redrafted), “Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)” and
• ISA 720 (Redrafted), “The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements”.
• These standards became effective for audits of financial statements for periods beginning on or after December 15, 2009.
  

ASCA (Jordan) continuously seeks to develop both accounting and management sciences, as well as all related principles applicable to all or some professional services. ASCA (Jordan) also seeks to upgrade the competence, practice and Code of Ethics at the highest professional levels through the issuance of accounting publications and following up on the recent developments in accounting and auditing.


To read part 1 click here.
To read part 2 click here.

This Publication includes the following:-

• Updated Glossary terms.
• ISA 700, “The Independent Auditor’s Report on a Complete Set of General Purpose Financial Statements”, that became effective for auditors’ reports dated on or after December 31, 2006.
• ISA 700 gave rise to conforming amendments to the following ISAs: 200, 210, 570, 701, 800,
  

in addition to the withdrawals of the following ISA:-

1. ISA 230, “Documentation” was withdrawn in June 2006 when the revised ISA 230 “Audit Documentation” became effective.
2. ISA 700, “The Auditor’s Report on Financial Statements” was withdrawn in December 2006 when the revised ISA 700, “The Independent Auditor’s Report on a Complete Set of General Purpose Financial Statements” became effective.

• ISA 240 (Redrafted),“The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements”.
• ISA 300 (Redrafted), “Planning an Audit of Financial Statements".
• ISA 315 (Redrafted), “Identifying and Assessing the Risks of Material
  Misstatement Through Understanding the Entity and Its Environment” and
• ISA 330 (Redrafted), “The Auditor’s Responses to Assessed Risks”.
  

The Handbook of International Auditing, Assurance, and Ethics pronouncements 2006 outlines the latest modifications made on the 2005 edition, which included : publication from the 2005 edition, Updating the glossary of terms; new (ISA) 230 (Revised), “Audit Documentation”, ISA 230 (Revised) and (ISRE) 2410 , as well as the new exposure drafts.

Latest changes made to this publication as distinct from 2004 edition are as follows:

1. The Glossary of Terms has been updated.
2. New Standards:-

• International Standard on Quality Control (ISQC1), “Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements”.
• International Standards on Auditing (ISA) 220 (Revised), “Quality Control for Audits of Historical Financial Information”.
• International Standard on Auditing (ISA) 240 “ The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements”.
• ISA 300 “Planning an Audit of Financial Statement”.
• ISA 700 (Revised), “The Independent Auditor’s Report on a Complete Set of General Purpose Financial Statements”.
• ISA 701 “Modifications of the Independent Auditor’s Report”.
  

This handbook includes the Arabic texts of International Standards on Auditing, International Auditing Practice Statements, International Standards on Review Engagements, and International Standards on Related Services , as well as the IFAC Code of Ethics for Professional Accountants.

These Pronouncements are designed to be sufficiently specific, understandable, comprehensive, and definitive to influence and guide the judgments of auditors in the Arab world in carrying out their work.

International Standards on Auditing (ISAs), developed by the International Auditing and Assurance Standards Board (IAASB), and IFAC’s Code of Ethics for Professional Accountants, establish benchmarks for the performance of high-quality audits. The release of the new handbook comes at a time when international convergence of standards is critical, both to accountants and to stakeholders who have interests across national borders and are increasingly looking for comparative information.