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Audits Public Lecture

Auditors responsible is giving reasonable assurance about whether the financial


statements are free of material misstatements, whether caused by error or fraud.
Stucture of pronouncements are :
IAASB ( The International Auditing Assurance Standards Board)
IESBA ( The International Ethics Standards Board for Accountants)
ISQC (International Standards On Quality Control)
ISA (International Standards on Auditing)
ISAE (International Standards on Assurance Engagements)
Risk Based Audit :
1. Risk Measurement
2. Audit Procedures
a. Risk Assesment
b. Risk Acceptance
c. Client Acceptance
3. Futher Audit Procedures
4. Audit Opinion
Audits similarities before and after ISA is the responsibility of the preparation of
financial statements that are free of misstatements remain the responsibility of the entity. While
the difference before and after ISA is that when the period before the ISA, existing standards are
rules-based standards which are set technical standards detail the preparation of financial
statements that must always be followed by accountants, whereas when the period after the ISA,
the standards used are principle-based standards where in the standard only general guidelines
outlined the objectives of the accounting process without regulate in detail how the accountant
must achieve it, so do not be complicated by too many rules.
Lastly, it is emphasized in the aftermath of the ISA compared to the period before the
ISA include professional vigilance (professional Scepticism) and professional knowledge
(professionaljudgment).

Writing ISA has its own structure. Starting from the Introduction that explains the start of the
scope of the ISA until the effective date, the targeted objectives to be met by the auditor,
definitions of terms related to the ISA, the requirements that must be met, applications or
application of the Isa, and Appendices.
IFAC ( International Federation of Accountants )
IFAC was founded to support accountancy profession around the world . Founded in 1977,
IFAC is the global organization for the accountancy profession. As of June 2012, it is comprised
of 167 accountancy organizations in approximately 127 countries and jurisdictions. These
accountancy organizations represent 2.5 million accountants in commerce and industry,
education, the not-for-profit sector, public practice, and the public sector. This organization,
through an independent standard-setting council, sets international standards of ethics, auditing
and assurance, accounting education, and public sector accounting
IFAC Missions :
1. Supporting standard development
IFAC supports for the development of auditing standards that can be used by all users /
stakeholders to create and read a financial statement. So that the whole world had only
one standard in the audit.
2. Improving quality and capacity from associates around the world
IFAC is always improving the quality and capacity of its members through training
provided and is always open to the entry of new members in the IFAC.
3. Supporting the profession
Helping accountants and auditors to run the appropriate professional ethics and
applicable professional regulations.
4. Global representation dan advocacy
A representative voice of the profession that speaks out on global matters and in the
public interest and that issues strong, relevant policy positions