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1

IFAC international federation of accountants

150 members and associate organizations.
global organization
individuals cannot be members. ex aicpa represents represent U.S CPA and AICPA is a member of IFAC

2

IFAC was founded in 1977 to

promote high quality international standards to facilitate cooperation among members, to collaborate with other professional organizations, and be the global voice

3

IFAC is a standard setting body but not an

accounting standard setter

4

IFAC has 4 separate standard setting board

International auditing and assurance standards board (IAASB)

International ethics standards board (IESB)

International public sector accounting standards board (IPSAB)-accounting issues involving governments

International accounting education standards board

5

Purpose of IAASB

to set high quality standards related to auditing, review , other assurance services, and quality control.

to facilitate convergence of national and international standards

6

public interest oversight board

oversees IAASB. protect public interest

7

IAASB comprised of

18 members
10 are nominated by member bodies
3 are so called public members
5 are nominated by transnational auditor committee

there are also 4 observers and one is nominated by pcaob

8

ISAs (international standards on auditing) issued by IAASB

distinguish explanatory material from professional requirements

9

IAASB follows due process

exposure drafts
public comments-revision when necessary
issues separate basis for conclusions for each final pronouncement

10

international ethics standards board (IESBA)

to set global ethics standards and provide guidance to promote good ethical practices.

IESBAs standards comprise IFACs code of ethics for professional accountants.

there is a public oversight board that oversees these IESBA activities and standards as well as IAASB activities and standards

11

difference between PCAOB and International standards

4 differences

sarbanes oxley is uniquely american and therefore ISAs do not require an audit on internal control (integrated audit)

ISAs are less prescriptive than us auditing standards. us auditing standards more rule based. ISAs are more auditor judgement

ISAs do not refer to other auditors. ISAs do not provide for a division of responsibility

under us standards going concern is limited to 12 months. under ISAs it is no limit to the amount of months