The Need for Standards and Regulations

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Regulation is needed to ensure that auditors are acting in the public interest

These 'regulations' come in 4 ways

  1. Ethics

  2. Standards

  3. Regulations

  4. Statutory

The international regulatory framework for audit and assurance services encompasses:

  • International Federation of Accountants (IFAC) pronouncements

    This is made up of the accountancy bodies such as ACCA & CIMA etc

  • Corporate Governance

Other Boards

  • IAASB
    International Auditing & Assurance Standards Board

    These develop ISAs but they must be in the public interest so are overseen by.

  • PIOB
    Public Interest Oversights Board

    Their role is to make sure everything is in the public interest and not just in the interest of the auditor

  • IESB
    International Ethics Standards Board

    Their role is to create an ethics code of conduct for all auditors to follow

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