International Auditing Issues

Question 1

What is the role of the International Federation of Accountants’ (IFAC’s) Public Interest Oversight Board (PIOB)?

Answer 1

The PIOB provides oversight to ensure that IFAC’s standards, including auditing standards and ethical standards, are responsive to the public interest and to enhance investor confidence in these standards.

Question 2

Who issues the International Financial Reporting Standards (IFRS)?

Answer 2

The International Accounting Standards Board (IASB), which is an independent accounting standard-setting body that is not affiliated with IFAC. IFAC is not an “accounting” standard-setting body.

Question 3

What is the role of the International Federation of Accountants’ (IFAC’s) International Auditing and Assurance Standards Board (IAASB)?

Answer 3

• In general, to be the global standard-setting body related to auditing, review, other assurance services, and quality control, and to facilitate convergence of national and international standards;
• With respect to auditing specifically, to issue International Standards on Auditing (ISAs) applicable to the audit of historical financial information.

Question 4

List the four standard-setting boards of the International Federation of Accountants (IFAC).

Answer 4

1. The International Auditing and Assurance Standards Board (IAASB)
2. The International Ethics Standards Board for Accountants (IESBA)
3. The International Public Sector Accounting Standards Board (IPSASB)
4. The International Accounting Education Standards Board (IAESB)

Question 5

Who can be members of the International Federation of Accountants (IFAC)?

Answer 5

Accounting organizations such as the AICPA can be members of IFAC, but individual accountants cannot be members.