Pham Thi Ngoc Bich – Auditing Dept.
– 1/2/2024
COB - UEH
Chapter 1:
INTRODUCTION TO
STANDARDS ON
AUDITING AND
ASSURANCE
ENGAGEMENTS
Pham Thi Ngoc Bich – Auditing Dept. – COB - UEH
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Pham Thi Ngoc Bich – Auditing Dept. – 1/2/2024
COB - UEH
CONTENT LOGO
1 Introduction to auditing standards
2 Vietnamese Standards on Auditing (VSAs)
3 International Standards on
Auditing (ISAs)
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LOGO
-
PART 1: INTRODUCTION TO AUDITING
STANDARDS
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LOGO
Auditing standards vs
Accounting standards
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LOGO
Auditing Standards
Auditing standards provide requirements and application and other
explanatory material to aid auditors in fulfilling their professional
responsibilities in an audit engagement.
Auditing standards are the measure of audit quality.
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LOGO
Auditing Standards
- Based on auditing standards, I
know what I should do;
- I also understand that the users,
community and society base on
those standards to evaluate our audit
work.
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LOGO
Benefits of Auditing Standards
For auditors:
- Providing a set of guidelines for conducting an audit
- Maitaining and improving audit quality
- Being a method to reduce audit expectation gap between the
auditor and the society.
For the users:
- Build users’trust on audit quality.
- Helping better understand audit work
- Considerating auditors’ responsibilities.
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Who establishes and issues Auditing LOGO
Standars?
- Professional Association
- Govermental Agency
- Independent Board
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LOGO
Points of focus in applying auditing standards
- REQUIREMENTS
- APPLICATIONS
Professional Judgment: The application of relevant training,
knowledge and experience, within the context provided by
auditing, accounting and ethical standards, in making
informed decisions about the courses of action that are
appropriate in the circumstances of the audit engagement.
(13, k, ISA 200)
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LOGO
Part 2
Vietnamese Standards on Auditing and
Assurance Engagements
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LOGO
HISTORY OF VSAs
Establishment of the first audit firm in Vietnam
5.1991 (Vietnamese auditing company – VACO)
1. 1994 Promulgating regulations on Independent Auditing
(Decree No. 07/1994/NĐ-CP)
9.1999 Issueing the first 4 Vietnamese auditing standards
3.2004 Promulgation of new regulation on Independent Auditing
(Decree 105/2004/NÑ-CP)
4.2005 Establishment of VACPA
12.2012 All 37 auditing standards re-established and issued
2015 Promulgating standards on review, assurance engagements and
related services
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He easily standardizes Vietnam's LOGO
accounting standards
Adjustment based on international standards with adjustment
for compatibility with Vietnam.
Issued according to the decision of the Finance Department
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LOGO
Independent Audit
Law
Decree guiding the law
Standard on professional Auditing standards
ethics
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International standards of service assurance LOGO
INTERNATIONAL STANDARDS ON REVIEW ENGAGEMENTS ( ISREs)
v 2400 Engagements to Review Financial Statements ( Previously ISA 910)
v 2410 Review of Interim Financial Information Performed by the Independent
Auditor of the Entity
INTERNATIONAL STANDARDS ON ASSURANCE ENGAGEMENTS ( ISAEs )
v 3000 Assurance Engagements Other than Audits or Reviews of Historical
Financial Information
v 3400 The Examination of Prospective Financial Information (Previously ISA
810) .
v 3402 Assurance Reports on Controls at a Service Organization.
v 3410 Assurance Engagements on Greenhouse Gas Statements
v 3420 Assurance Engagements to Report on the Compilation of Pro Forma
Financial Information included in a Prospectus
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International standards of service LOGO
assurance
INTERNATIONAL STANDARDS ON RELATED SERVICES ( ISRSs)
v 4400 Agreed-Upon Procedures Engagements (Previously ISA 920) .
v 4410 Compilation Engagements (Previously ISA 930 )
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LOGO
Effective Vietnamese audit standards 1.2014
1. VSA 200: Overall Objectives of the Independent Auditor and the Conduct
of an Audit in Accordance with VSA
2. VSA 210: Audit Engagements
3. VSA 220: Quality Control for an Audit of Financial Statements
4. VSA 230: Audit Documentation
5. VSA 240: The Auditor's Responsibilities Relating to Fraud in an Audit of
Financial Statements
6. VSA 250: Consideration of Laws and Regulations in an Audit of
Financial Statements
7. VSA 260: Communication with Those Charged with Governance
8. VSA 265: Communicating Deficiencies in Internal Control to Those
Charged with Governance and Management
9. VSA 300: Planning an Audit of Financial Statements
[Link] 315: Identifying and Assessing the Risks of Material Misstatement
through Understanding the Entity and Its Environment
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LOGO
Effective Vietnamese audit standards 01.2014
1.20141.2014
11. VSA 320: Materiality in Planning and Performing an Audit
12. VSA 330: The Auditor's Responses to Assessed Risks
13. VSA 402: Audit Considerations Relating to an Entity Using a
Service Organization
14. VSA 450: Evaluation of Misstatements Identified during the
Audit
15. VSA 500: Audit Evidence
16. VSA 501: Audit Evidence-Specific Considerations for Selected
Items
17. VSA 505: External Confirmations
18. VSA 510: Initial Audit Engagements-Opening Balances
19. VSA 520: Analytical Procedures
20. VSA 530: Audit Sampling
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LOGO
Effective Vietnamese audit standards 01.2014
1.20141.2014
21. VSA 540: Auditing Accounting Estimates, Including Fair Value
1.2014
Accounting Estimates, and Related Disclosures
22. VSA 550: Related Parties
23. VSA 560: Subsequent Events
24. VSA 570: Going Concern
25. VSA 580: Written Representations
26. VSA 600: Special Considerations-Audits of Group Financial
Statements (Including the Work of Component Auditors)
27. VSA 610: Using the Work of Internal Auditors
28. VSA 620: Using the Work of an Auditor's Expert
29. VSA 700: Forming an Opinion and Reporting on Financial
Statements
30. VSA 705: Modifications to the Opinion in the Independent
Auditor's Report
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LOGO
Effective Vietnamese audit standards 01.2014
1.20141.2014
31. VSA 706: Emphasis of Matter Paragraphs and Other Matter
1.2014
Paragraphs in the Independent Auditor's Report
32. VSA 710: Comparative Information-Corresponding Figures and
Comparative Financial Statements
33. VSA 720: The Auditor's Responsibilities Relating to Other
Information in Documents Containing Audited Financial
Statements
34. VSA 800: Special Considerations-Audits of Financial Statements
Prepared in Accordance with Special Purpose Frameworks
35. VSA 805: Special Considerations-Audits of Single Financial
Statements and Specific Elements, Accounts or Items of a
Financial Statement
36. VSA 810: Engagements to Report on Summary Financial
Statements
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LOGO
Effective Vietnamese audit standards 01.2014
1.20141.2014
37. VSA 1000: Audit of the final accounts of the completed project
1.2014
Vietnamese Standard on Quality Control (VSQC) 1, Quality Controls
for Firms that Perform Audits and Reviews of Financial Statements,
and Other Assurance and Related Services Engagements
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Vietnamese standards on review, assurance and
LOGO
related services 01.2016
VIETNAMESE STANDARDS ON REVIEW ENGAGEMENTS (VSREs)
1. 2400 Engagements to Review Financial Statements ( Previously VSA 910)
2. 2410 Review of Interim Financial Information Performed by the Independent
Auditor of the Entity
VIETNAMESE STANDARDS ON ASSURANCE ENGAGEMENTS (VSAEs )
1. 3000 Assurance Engagements Other than Audits or Reviews of Historical
Financial Information
2. 3400 The Examination of Prospective Financial Information (Previously VSA
810)
3. 3420 Assurance Engagements to Report on the Compilation of Pro Forma
Financial Information included in a Prospectus
VIETNAMESE STANDARDS ON RELATED SERVICES ( VSRSs)
1. 4400 Agreed-Upon Procedures Engagements (Previously VSA 920) .
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LOGO
Part 3
International standards on
auditing and assurance
enagements
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LOGO
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LOGO
IFAC
Established on October 7, 1977
The global organization for the accountancy profession.
It serves the public interest by working with its member organizations
to help ensure a skilled, knowledgeable, and ethical workforce of
professional accountants around the world; by contributing to the
development of sustainable private and public sector
organizations; and by supporting strong international financial
markets and economies.
2023 - IFAC’s membership comprises more than 180 professional
accountancy organizations in over 135 jurisdictions, representing
more than 3 million professional accountants in public practice,
industry, government and education
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INTERNATIONAL AUDITING AND ASSURANCE LOGO
STANDARDS BOARD ( IASB)
International standards on auditing (ISAs)
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Key phases LOGO
Project
Clarity ISAs
2022
ISAs
2009
ISAs
2004
ISAs 2009-present
1994 Revised and
2006-2009 updated _
Issued clarified
2004-2006: standards
Reform -
1994-2003 Identified ways
Added to improve
clarity
1980- 1994
From IAG to
ISA
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LOGO
INTERNATIONAL TOTAL PROCESS
1. 1980: IAPC (International Auditing Practices Committee) issued
International Audit Guidelines (IAGs)
2. From 1980 to 1994: issued 31 IAGs.
3. June 1994: Replaced IAGs with ISAs. In addition, they issued
International Auditing Practice Statements (IAPS).
4. In 2001, IAPC became IAASB ( International Auditing and
Assurance Standards Board).
5. In 2004, correction and improvement of standards were made
and a revised ISAs released.
6. All new clarified ISAs were issued and effective on December
15, 2009.
7. Since 2010, continued research
8. The latest version is the 2022 version issued on October 13,
2023.
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ISA (2022) LOGO
v ISA 200, Overall Objectives of the Independent Auditor and the
Conduct of an Audit in Accordance with ISA
v ISA 210, Agreeing the Terms of Audit Engagements
v ISA 220, Quality Control for an Audit of Financial Statements
v ISA 230, Audit Documentation
v ISA 240, The Auditor's Responsibilities Relating to Fraud in an Audit
of Financial Statements
v ISA 250, Consideration of Laws and Regulations in an Audit of
Financial Statements
v ISA 260, Communication with Those Charged with Governance
v ISA 265, Communicating Deficiencies in Internal Control to Those
Charged with Governance and Management
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Dept. – COB - UEH
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ISA(2022) LOGO
v ISA 300, Planning an Audit of Financial Statements
v ISA 315, Identifying and Assessing the Risks of Material
Misstatement through Understanding the Entity and Its
Environment
v ISA 320, Materiality in Planning and Performing an
Audit
v ISA 330, The Auditor's Responses to Assessed Risks
v ISA 402, Audit Considerations Relating to an Entity
Using a Service Organization
v ISA 450, Evaluation of Misstatements Identified during
the Audit
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Dept. – COB - UEH
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ISA(2022) LOGO
v ISA 500, Audit Evidence
v ISA 501, Audit Evidence-Specific Considerations for Selected Items
v ISA 505, External Confirmations
v ISA 510, Initial Audit Engagements-Opening Balances
v ISA 520, Analytical Procedures
v ISA 530, Audit Sampling
v ISA 540, Auditing Accounting Estimates, Including Fair Value
Accounting Estimates, and Related Disclosures
v ISA 550, Related Parties
v ISA 560, Subsequent Events
v ISA 570, Going Concern
v ISA 580, Written Representations
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Dept. – COB - UEH
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ISA(2022) LOGO
v ISA 600, Special Considerations-Audits of Group
Financial Statements (Including the Work of Component
Auditors)
v ISA 610, Using the Work of Internal Auditors
v ISA 620, Using the Work of an Auditor's Expert
v ISA 700, Forming an Opinion and Reporting on Financial
Statements
v ISA 701 Communicating Key Audit Matters in the
Independent Auditor's Report
v ISA 705, Modifications to the Opinion in the Independent
Auditor's Report
v ISA 706, Emphasis of Matter Paragraphs and Other
Matter ParagraphsPham
in Thi
the Independent Auditor's Report
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Pham Thi Ngoc Bich – Auditing Dept. – 1/2/2024
COB - UEH
ISA(2022) LOGO
v ISA 710, Comparative Information-Corresponding Figures and
Comparative Financial Statements
v ISA 720, The Auditor's Responsibilities Relating to Other Information in
Documents Containing Audited Financial Statements
v ISA 800, Special Considerations-Audits of Financial Statements Prepared
in Accordance with Special Purpose Frameworks
v ISA 805, Special Considerations-Audits of Single Financial Statements
and Specific Elements, Accounts or Items of a Financial Statement
v ISA 810, Engagements to Report on Summary Financial Statements
v International Standard on Quality Control (ISQC) 1, Quality Controls for
Firms that Perform Audits and Reviews of Financial Statements, and
Other Assurance and Related Services Engagements
Pham Thi Ngoc Bich – Auditing [Link]
Dept. – COB - UEH
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Pham Thi Ngoc Bich – Auditing Dept. – 1/2/2024
COB - UEH
International standards of service assurance LOGO
INTERNATIONAL STANDARDS ON REVIEW ENGAGEMENTS ( ISREs)
v 2400 Engagements to Review Financial Statements ( Previously ISA 910)
v 2410 Review of Interim Financial Information Performed by the Independent
Auditor of the Entity
INTERNATIONAL STANDARDS ON ASSURANCE ENGAGEMENTS ( ISAEs )
v 3000 Assurance Engagements Other than Audits or Reviews of Historical
Financial Information
v 3400 The Examination of Prospective Financial Information (Previously ISA
810) .
v 3402 Assurance Reports on Controls at a Service Organization.
v 3410 Assurance Engagements on Greenhouse Gas Statements
v 3420 Assurance Engagements to Report on the Compilation of Pro Forma
Financial Information included in a Prospectus
Pham Thi Ngoc Bich – Auditing [Link]
Dept. – COB - UEH
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Pham Thi Ngoc Bich – Auditing Dept. – 1/2/2024
COB - UEH
International standards of service LOGO
assurance
INTERNATIONAL STANDARDS ON RELATED SERVICES ( ISRSs)
v 4400 Agreed-Upon Procedures Engagements (Previously ISA 920) .
v 4410 Compilation Engagements (Previously ISA 930 )
Pham Thi Ngoc Bich – Auditing [Link]
Dept. – COB - UEH
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Pham Thi Ngoc Bich – Auditing Dept. – 1/2/2024
COB - UEH
IAPN 1000 LOGO
v IAPN (International Auditing Practice Note) 1000 -
Special Considerations In Auditing Financial Instruments
v IAPNs do not impose additional requirements on auditors
beyond those included in ISAs, nor do they change the
auditor's responsibility to comply with all ISAs relevant to
the audit.
v IAPNs provide practical assistance to auditors.
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Dept. – COB - UEH
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