Conformity with International Standards Conformity with International Standards on Auditing

Conformity with International Standards on Auditing

28 Except as noted below, this Auditing Standard conforms with International Standard on Auditing ISA 402 Audit Considerations Relating to Entities Using Service Organizations, issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants. The main differences between this Auditing Standard and ISA 402 are:

• This Auditing Standard applies to sub-service organisations, whereas ISA 402 does not (paragraph 4).
• This Auditing Standard contains a mandatory requirement for the auditor to consider the professional competence of the service organisation auditor, where the auditor uses the report of that auditor, in the context of the specific assignment undertaken by the service organisation auditor (paragraph 17). Where the auditor uses the report of a service organisation auditor, ISA 402 requires the auditor to consider making enquiries concerning the auditor’s professional competence in the context of the specific assignment undertaken by the service organisation auditor.
• This Auditing Standard contains explanatory guidance relating to circumstances where the auditor concludes that the work of the service organisation cannot be used, and the auditor has been unable to obtain sufficient appropriate audit evidence about the operating effectiveness of the internal control to support the auditor’s assessed risks of material misstatement, whereas, ISA 402 does not (paragraph 25).

Compliance with this Auditing Standard enables compliance with ISA 402.