Phil Cowperthwaite - The ISAs and Micro-Entity Audits

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Presentation by Phil Cowperthwaite at IFAC SMP Forum, March 2012

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Phil Cowperthwaite - The ISAs and Micro-Entity Audits

  1. 1. The ISAs and micro-entityauditsProportional application for effective andefficient auditsPhil Cowperthwaite Singapore March 19, 2012 Page 1 | Confidential and Proprietary Information
  2. 2. Assurance and related services for micro-entitiesAudit? – ISAs and ISQC1Review? – ISRE 2400 and ISQC 1Compilation? – ISRS 4410 and ISQC1 Page 2 | Confidential and Proprietary Information
  3. 3. The ISAs and micro-entity auditsAn audit is an audit is a fundamental principle of IFACIs a proportionate approach ever possible? Page 3 | Confidential and Proprietary Information
  4. 4. The ISAs and micro-entity auditsYou only need to comply with:A) Relevant ISAs [200.18]B) Relevant Requirements [200.22]But you do need to comply with all of these in every audit Page 4 | Confidential and Proprietary Information
  5. 5. The ISAs and micro-entity auditsTotal number of ISA requirements (2010) 572Not usually relevant in a micro-entity audit (470)Relevant in every micro-entity audit 102e.g. #1 ISA 210, Terms of EngagementTotal number of ISA requirements (2010) 16Not usually relevant in a micro-entity audit (13)Relevant in every micro-entity audit 3 Page 5 | Confidential and Proprietary Information
  6. 6. The ISAs and micro-entity auditse.g. #2 ISQC1 – Is it relevant?It requireso Ethical behaviouro Know your cliento Competent audit team memberso Have time to do the work properlyo Adequate and timely documentationo Self evaluation annuallyLow risk micro-entity engagements need no EQCR Page 6 | Confidential and Proprietary Information
  7. 7. The ISAs and micro-entity auditsHow to #1:Read and understand the standards.You cannot know what to leave out if you do not know what is in there in the first place Page 7 | Confidential and Proprietary Information
  8. 8. The ISAs and micro-entity auditsHow to #2:o Automate your practiceo Staff appropriatelyo Do the work on siteo Specialize if you cano Communicate/communicate/communicate Page 8 | Confidential and Proprietary Information
  9. 9. The ISAs and micro-entity audits The career of a professional accountant in public practice is and always has been one of life long learning. Thank you for your attention. Wishing you happy and profitable auditing  Page 9 | Confidential and Proprietary Information
  10. 10. www.ifac.org

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