Skip to content

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

Orion Partners, a firm in a jurisdiction that has adopted ISAs, finds that a national law requires auditors to follow a specific reporting format that conflicts with ISA 700 (Revised) wording. The firm wishes to refer to ISAs in its report. Which treatment is consistent with ISA requirements?

Where law prescribes the report format, the auditor can still refer to ISAs only if the report contains the minimum elements ISA 700 requires, including opinion, basis for opinion and responsibilities, and identifies the national law or practice. Law does not automatically override the ISA conditions.

  1. AThe auditor may refer to ISAs only if the national format includes, at minimum, the required elements of ISA 700 such as the opinion, basis for opinion, and responsibilities sections, and identifies the national law or practiceCorrect
  2. BThe auditor may refer to ISAs as the national law overrides ISA 700 entirely
  3. CThe auditor must never refer to ISAs and must refer only to national standards
  4. DThe auditor may refer to ISAs only if the audit committee approves the departure in writing

Explanation

ISA 700 allows a prescribed layout or wording where law requires, but ISA reference is permitted only if the report includes specified minimum elements and identifies the national law or practice. Simply overriding the standard, or banning ISA reference altogether, is wrong, and audit committee approval has no bearing.

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