ICAEW International Standards on Auditing

(ISAs) Programme

Chapter Modules

1. Introduction This chapter sets out the context and content of the programme,
describing the structure and source of auditing standards.
Regulatory and professional standards

2. Objectives and conduct Before beginning work on an audit, it is important to be aware of the
of an audit objectives of an auditor, as this governs how every stage of the
engagement is scheduled, planned and performed.
Objectives of the independent auditor (ISA 200)

3. Accepting and This chapter includes three modules covering the initial
managing engagements considerations when accepting an audit.
The final module looks at the auditor’s obligations to communicate
with those charged with governance, which will usually include but
may not be limited to the audited entity’s Board of Directors.
Communication is not limited to the issue of an audit report at the
end of the work and may be in writing or verbal depending on
conditions set out in ISA 260.
Ethics and quality (ISQM1, ISQM 2, ISA 220, 230)
Accepting and continuing with audit engagements (ISQC1, ISA 220,
230)
Communication with those charged with governance (ISA 260)

4. Planning including risk Auditing standards include considerable material on the planning of
assessment an audit. The first module in this chapter looks at the general
principles of audit planning and the others look at particular aspects
of the planning, including calculating materiality. The third module
includes discussion of the requirements of the revised ISA 315
which looks in great detail at how understanding the entity and its
environment affects the audit plan, and this continues in the module
on ISA 330 and responding to risks. Finally, the chapter looks at
special considerations when the audited entity uses service
organisations such as a payroll bureau.
Planning the audit (ISA 300,320)
Materiality in planning (ISA 320)
Identifying and assessing the risks of material misstatement (ISA
315,240,250)
Responding to risks (ISA 330)
Audit considerations relating to an entity that uses service
organisations (ISA 402)

© ICAEW January 2023

5. Using the work of Following on from the previous chapter’s module on entities that use
others service organisations, the single module in this chapter looks at
consideration for auditors who will be using the work of others,
including how this is documented and what reliance can be placed
on it.
Using the work of others (ISA 610,620)

6. Audit evidence This chapter looks at some of the detail in performing audit work.
The first module examines the meaning of audit evidence, how this
is collected, assessed and used, and what constitutes high quality
evidence. As well as substantive procedures, analytical procedures
are a key part of every audit, and are performed at the beginning
and end as well as during audit testing. The final module in the
chapter looks at establishing sample sizes for testing, linked to risk
assessments and materiality calculation already performed in the
planning stage, and including responding to issues by changing the
extent of testing, where appropriate.
Audit evidence (ISA 500, 501, 505, 510)
Using analytical procedures (ISA 315, 520)
Determining the extent of testing (ISA 500 and 530)

7. Accounting estimate The audit of accounting estimates is an increasingly challenging

and related parties area and the first module in this chapter looks at the enhanced
requirements of the revised ISA 540.
Audit of related parties is covered in the second module and again
links to the earlier work performed by the auditor on understanding
the entity and its environment.
Auditing accounting estimates (ISA 540, 545)
Audit of related parties (ISA 550)

8. Going concern This chapter contains a single module on going concern, how the
auditors review and respond to management’s going concern
assessment, and procedures for challenging this. The module
acknowledges the current differences between ISA 570 and the
more recently updated ISA (UK) 570 and highlights the most
significant differences.
Going concern (ISA 570)

9. Audit completion Reaching the end of the audit life cycle, this chapter looks at
procedures at the completion stage of the audit, after the bulk of field
work has been performed.
Again, there are links to material from earlier in the cycle, as the
results of the work are reviewed in the light of expectations at the
planning stage, and continuing communication takes place with
those charged with governance.
Auditing subsequent events (ISA 560)
Evaluation of audit evidence
Communicating deficiencies in internal control (ISA 265)
Obtaining written representations (ISA 580)

© ICAEW January 2023

10. Reporting on audited When all work has been completed, the auditor issues an opinion on
financial statements the financial statements. Again, this chapter takes into account the
and summary financial differences in the current ISA (UK) 700 and illustrates the decisions
statements taken when drafting the audit report and how issues identified are
described.
Forming an opinion and reporting on financial statements (ISA 700)
Comparative information (ISA 710)
Auditors responsibilities for other information (ISA 720)
Reporting on summary financial statements (ISA 810)

© ICAEW January 2023