As you know, the Audit Chamber of Ukraine has approved for mandatory application from July 1, 2018 as national auditing standards International Standards for Quality Control, Audit, Review, Other Assurance and Related Services (2016-2017 editions), translated into Ukrainian language. Let's consider how this publication differs from the previous ones and what to pay attention to the auditors who will work on the new ISAs.
First of all, it should be noted that the International Standards for Quality Control, Audit, Review, Other Assurance and Related Services, 2016-2017 Editions (ISA 2016-2017, Standards) are effectively completing the reform launched in 2010 and aimed at increasing value and the clarity of the auditor's reports; and the return of public confidence in the audit results. That is why the main changes made in ISA 2016-2017 relate to the preparation of the independent auditor's report.
Experience shows that after making fundamental changes to the ISA there is a certain period of "calm". Adjustments made over the next few years are mostly cosmetic. That is why ISA 2016-2017 will be the basis of the auditor's work for at least several years.
It is important to recall that in addition to the revised ISAs, the auditor will have to master the provisions of the new relevant Law of Ukraine "On Auditing Financial Statements and Auditing" (hereinafter - the Law on Audit), which will enter into force in October this year and the amended Law of Ukraine "On accounting and financial reporting in Ukraine” (hereinafter - the Law on Accounting), which we have been guided by since the beginning of this year.
The new Law on Auditing more clearly prescribes the requirements and procedures for performing statutory audit tasks.
Returning to ISA 2016-2017, it should be noted that they have revised the following standards:
- ISA 250 “Review of Legislation and Regulations in the Audit of Financial Statements”;
- ISA 800 “Special Provisions - Audits of Financial Statements Prepared in Accordance with Special Purpose Conceptual Frameworks”;
- ISA 805 “Special Provisions for Audits of Separate Financial Statements and Certain Elements, Accounts or Items in the Financial Statements”;
- ISA 810 “Reporting on Generalized Financial Statements”.
Auditors need to pay special attention to them.