Page 7 - Internal Auditing Standards

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

Preface

The second edition of this Guide was commissioned by the IFAC Small and Medium Practices (SMP)
Committee to assist practitioners on the audit of small- and medium-sized entities (SMEs), and to promote
consistent application of the International Standards on Auditing (ISAs).
While developed by the Canadian Institute of Chartered Accountants (the CICA), the Guide is the full
responsibility of the IFAC SMP Committee. The International Auditing and Assurance Standards Board (IAASB)

staff and a global advisory panel, with members drawn from a broad cross-section of IFAC member bodies,
have assisted in reviewing the Guide.

The Guide provides non-authoritative guidance on applying ISAs. It is not to be used as a substitute for
reading the ISAs, but rather as a supplement intended to help practitioners understand and consistently
implement these standards on SME audits. The Guide does not address all aspects of ISAs, and should not be
used for the purposes of determining or demonstrating compliance with the ISAs.

The Guide is intended to explain and illustrate so as to develop a deeper understanding of an audit
conducted in compliance with ISAs. It offers a practical “how-to” audit approach that practitioners may use

when undertaking a risk-based audit of an SME. Ultimately it should help practitioners conduct high quality,

cost-effective SME audits, and in so doing help them to better serve the public interest. It is anticipated

that the Guide will be used by member bodies, audit firms, and others as a basis for educating and training
professional accountants and students.

IFAC member bodies and firms may use the Guide, either as it is or tailored to suit their own needs and

jurisdiction. It provides a basis from which member bodies and others can develop derivative products such
as training materials, audit software, checklists, and forms.

The IFAC SMP Committee welcomes readers to visit its International Center for Small and Medium Practices
(www.ifac.org/smp), which hosts a collection of other free publications and resources.

Sylvie Voghel

Chair, IFAC SMP Committee
October 2010

5