Page 11 - Internal Auditing Standards

Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts

1.2 Content and Organization

Rather than just summarize each ISA in turn, the Guide has been organized into two volumes as follows:

• Volume 1—Core Concepts
• Volume 2—Practical Guidance

This is Volume 1 of the Guide, which provides an overview of the entire audit and a discussion of key audit
concepts such as materiality, assertions, internal control, risk assessment procedures, and the use of further audit
procedures in responding to assessed risks. It also includes a summary of ISA requirements with respect to:

• Specific areas such as accounting estimates, related parties, subsequent events, going concern, and others;
• Documentation requirements; and
• Forming an opinion on the fi nancial statements.

Volume 2 of the Guide focuses on how to apply the concepts outlined in Volume 1. It follows the typical
stages involved in performing an audit, starting with client acceptance, planning, and risk assessment, and
then the risk response, evaluating audit evidence obtained, and forming an appropriate audit opinion.

To avoid repetition, Volume 2 has not repeated the requirements of ISAs that address specific audit issues
such as estimates, related parties, subsequent events, going concern, and various other ISAs. Volume 1
summarizes these requirements in separate chapters or as part of Chapter 15, which is entitled “Summary of
Other ISA Requirements.”

Summary of Organization

Each chapter in both volumes of this Guide has been organized in the following format:
• Chapter Title

• Audit Process Chart—Extract
Most chapters contain an extract from the audit process chart (where applicable) to highlight the
particular activities addressed in the chapter.

• Chapter Content
This outlines the content and purpose of the chapter.
• Relevant ISAs
Most chapters in this Guide begin with some extracts from the ISAs that are relevant to the chapter
content. These extracts include relevant requirements and, in some cases, the objectives (sometimes
highlighted separately if/when a chapter focuses primarily on one particular ISA), selected defi nitions,
and application material. The inclusion of these extracts is not meant to imply that other material in

the ISA not specifically mentioned, or other ISAs that relate to the subject matter, do not need to be
considered. The extracts in the Guide are based solely on the judgment of the authors as to what is
relevant for the content of each particular chapter. For example, the requirements of ISAs 200, 220,
and 300 apply throughout the audit process, but have only been addressed specifically in one or two

chapters.
• Overview and Chapter Material
The overview in each chapter provides:
– Extracts from applicable ISAs; and
– An overview of what is addressed in the chapter.

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