IFAC Updates Audit Guide for Small and Midsized Entities

The International Federation of Accountants’ Small and Medium Practices Committee has released the third edition of its Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities.

The guide aims to help practitioners understand and apply the clarified International Standards on Auditing to small and midsized organizations.

“Practitioners in many jurisdictions have begun using the clarified ISAs, and effective implementation of these standards is key to audit quality,” said SMP Committee chair Sylvie Voghel in a statement. “The ISA Guide should help practitioners conduct high-quality, cost-effective audits of SMEs, thereby contributing to the quality of the profession and our mission to serve the wider public interest.”

The implementation guide provides a “how-to” approach for conducting risk-based audits of small and midsized entities. Volume 1 covers the basic concepts of a risk-based audit in conformance with the International Standards on Auditing. Volume 2 contains practical guidance on performing SME audits, including two illustrative case studies—one of an SME audit and one of a micro-entity audit.

The updated ISA Guide can be downloaded free of charge from the SMP Publications and Resources area of IFAC’s Web site.