Relevance of ias / ifrs to auditing, Auditing

RELEVANCE OF IAS / IFRS TO AUDITING

The auditors should involve in their report that their view on whether the financial statements they report are true and fair view. It is commonly felt that in order for accounts to display a true and fair view there should be compliance with the IAS / IFRS.  There might be conditions where compliance with IAS / IFRS might outcome in a true and fair view not being given though this is rare. Therefore effectively, the auditor is being requested to give an opinion on whether all the IAS / IFRS have been complied with in the preparation of the accounts he is auditing. The auditor hence should know and recognize the IAS / IFRS in detail. The auditing students are also likely to know the IAS / IFRS in detail since invariably, there will be an examination question which needs this knowledge and students are recommended to quote from the IAS / IFRS and state which of the IAS / IFRS is appropriate to their answer.

International Financial Reporting Standards are planned to be applied to all financial statements that show a true and fair view. They set out the main suppositions underlying statements and they prescribe that accounting policy must be employed when more than one is possible. They also identify disclosure needs in many regions involving the disclosure of accounting policies. Again they are not planned to be a comprehensive code of firm rules. It is familiar that such a code adequately elaborates to cater for all business condition and circumstances and for every extraordinary and marginal case is not possible.  The advantages of IAS / IFRS are as follows:

1. They lead to a degree of regularity and comparability amongst accounts.

2. They support understanding by given that readers of the accounts bigger information concerning the preparations of the accounts.

3. They support accountants and auditors by helping in the procedure of determining what a true and fair vision is.  They hence aid refines the meaning of true and fair view.

4. They explain a technique of accounting and or disclosure necessity approved by the institute.

5. Members of the institute are grateful to secure obedience to IAS / IFRS whenever they are anxious with financial statements, accountants, directors, company secretaries, auditors or in any other role.

Posted Date: 12/3/2012 4:58:59 AM | Location : United States







Related Discussions:- Relevance of ias / ifrs to auditing, Assignment Help, Ask Question on Relevance of ias / ifrs to auditing, Get Answer, Expert's Help, Relevance of ias / ifrs to auditing Discussions

Write discussion on Relevance of ias / ifrs to auditing
Your posts are moderated
Related Questions
Fraudulent financial reporting Involves intentional misstatements or errors of amounts or disclosures in financial statements to mislead financial statement users. Fraudulent f

Issues for Finance Leases For the leases such have been categorize as finance leases, a model uses to be checked for the following issues: (i) Check technique used to split

Prepayments - Audit Process Prepayments similar to accruals are not mostly checked through the double entry system. This creates them susceptible to mistake. The auditor's pro

In previous times, the Kings used to hear their accountants narrate the accounts verbally. Though, as the complexity of the accounting function grew, require was felt to thoroughly

The Concept of Audit Evidence Auditing is an evidence gathering exercise. It is an exercise carried out to confirm the assertions made by the management in carrying out the man

Audit of Group Accounts The main problems can be split into three sections in this area as: 1. The audit of the holding company confirming and obtaining information concern

Business Risk Approach This approach requires the auditor to determine what are the very important business risks which the client faces. This line of approach both helps the c

Control Problems in Charities 1. Door to door collections : Volunteers should be mattered along with numbered boxes, the boxes should be sealed, and the boxes should be

Explain the independence between the auditor and the client on financial statement audit engagements

Problem : As per the Field Standard (INTOSAI), competent, relevant and reasonable evidence should be obtained to support the auditor judgement and conclusions regarding the org