New Audit Publications Provide Guidance
The International Federation of Accountants (IFAC) has released three documents that will provide guidance, clarification, and planning assistance for auditors. These documents are available for download or paper copies may be ordered at the IFAC Web site.
- The Auditor's Responsibility to Consider Fraud and Error in an Audit of Financial Statements. This International Standard on Auditing is applicable to audits of financial periods on or after June 30, 2002. The standard advises auditors to consider the risk of financial statement inaccuracies resulting from fraud and error, and also distinguishes between management fraud and employee fraud. In addition, the standard contains information regarding the limitations of auditors when assessing fraud. The cost of the standard is $22 to download or $25 for a paper version.
- Auditing Derivative Financial Instruments. This International Auditing Practice Statement provides guidance to auditors involved in examinations of derivative financial instruments. The statement explains when specific substantive procedures should be used, addresses key financial risks, and examines management's responsibilities. The cost of the statement is $22 to download or $25 for a paper version.
- Independence - Proposed Changes to the Code of Ethics for Professional Accountants. This document is an exposure draft which provides guidance on relationships and situations that threaten independence. In particular, the document identifies family members and others who can endanger independence and recommends procedures to reduce such threats. There is no charge to download this document. The IFAC is seeking comments on this document. After reading the document, you may send comments to IFAC via e-mail or via fax at 212-286-9570.