Page 10 - Internal Auditing Standards

1. How to Use the Guide

The purpose of this Guide is to provide practical guidance to practitioners conducting audit engagements for
small- and medium-sized entities (SMEs). However, no material in the Guide should be used as a substitute for:

• Reading and understanding of the ISAs
It is assumed that practitioners have read the text of the International Standards on Auditing (ISAs) as
contained in the 2010 IFAC Handbook of International Quality Control, Auditing, Review, Other Assurance,
and Related Services Pronouncements (IFAC Handbook), which can be downloaded free of charge from
the IFAC online publications and resources site at web.ifac.org/publications. ISA 200.19 states that the
auditor shall have an understanding of the entire text of an ISA, including its application and other
explanatory material, to understand its objectives and to apply its requirements properly. The ISAs, as
well as frequently asked questions (FAQs) and other support materials, can also be obtained from the
Clarity Center at web.ifac.org/clarity-center/index.

• Use of professional judgment
Professional judgment is required based on the particular facts and circumstances involved in the fi rm
and each particular engagement, and where interpretation of a particular standard is required.

While it is expected that small- and medium-sized practices (SMPs) will be a significant user group, this Guide
is intended to help all practitioners to implement ISAs on SME audits.

This Guide can be used to:
• Develop a deeper understanding of an audit conducted in compliance with the ISAs;

• Develop a staff manual (supplemented as necessary for local requirements and a firm’s procedure) to be
used for day-to-day reference, and as a basis for training sessions and individual study and discussion;
and
• Ensure that staff adopt a consistent approach to planning and performing an audit.

This Guide often refers to an audit team, which implies that more than one auditor is involved in conducting
the audit engagement. However, the same general principles also apply to audit engagements performed
exclusively by one person (the practitioner).

1.1 Reproduction, Translation, and Adaptation of the Guide

IFAC encourages and facilitates the reproduction, translation, and adaptation of its publications. Interested
parties wishing to reproduce, translate, or adapt this guide should contact permissions@ifac.org.

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