Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · International regulatory frameworks for audit and assurance services

A country's accountancy body is considering joining IFAC as a member. A director asks whether IFAC membership means its members are directly bound by ISAs without any national action. Which statement is most accurate under the IFAC framework?

IFAC member bodies must use best endeavours to implement international standards nationally, but IFAC has no legal power over individual auditors. ISAs only become binding when adopted by national law or the professional body, so they do not apply automatically on issue.

  1. AMembers must support the work of IFAC and use their best endeavours to incorporate IAASB standards into national requirements, but ISAs have legal force only if adopted nationallyCorrect
  2. BISAs automatically become law in the member's jurisdiction on the date the IAASB issues them
  3. CIFAC may directly discipline individual auditors in member countries for breaching ISAs
  4. DIFAC membership requires the member body to replace national ethical rules with the IESBA Code, with no additions permitted

Explanation

IFAC membership obligations (SMOs) include best endeavours to implement international standards, but IFAC has no legal authority over individual auditors. ISAs bind auditors only through national adoption or professional body rules. The Code may be supplemented by stricter national requirements, so the last option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on International regulatory frameworks for audit and assurance services shows your real accuracy, how long you take and where you lose marks.

Practise International regulatory frameworks for audit and assurance servicesFree diagnostic mock

More International regulatory frameworks for audit and assurance services questions