International Auditing Standards
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... Head: International Auditing Standards International Auditing Standards 400, 401 and 402 International Standards on Auditing (ISA) 400 Description of the ISA
ISA 400, Risk Assessments and Internal Control, provides guidance in the understanding of the "accounting and internal control systems and on audit risk and its components: inherent risk, control risk and detection risk" (ISA 400, par. 4). The main purpose of this is not to assess the effectiveness of the internal control system but to understand those procedures and controls that may impact the "nature, timing and extent of substantive procedures" (ISA 400, par. 9). The ISA stated that the auditor needs to obtain an understanding of those accou...