IFAC's Impact: Auditing, Assurance, and International Standards

This essay explores the International Federation of Accountants (IFAC) website to demonstrate the relevance of auditing and assurance concepts. It highlights the crucial role auditors play in ensuring the credibility of financial statements and the significance of the International Auditing and Assurance Standards Board (IAASB) in setting global auditing standards. The essay emphasizes how high-quality audits foster public trust in financial reports and benefit businesses and the economy. It also discusses the importance of independent audits in investment decisions and the role of audit services in improving companies' operations, internal controls, and risk management. The analysis concludes that international standards enhance the consistency, transparency, and reliability of financial information, contributing to global financial stability and economic growth.

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Auditing

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Table of Contents
Introduction......................................................................................................................................3
Auditing and quality........................................................................................................................3
Auditing and assurance....................................................................................................................3
Conclusion.......................................................................................................................................4
Reference List..................................................................................................................................5

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Introduction
A wide range and variety of professional services are provided by accounting firms and
accountants to their clients. These services include review, audit, assurance and other services
related to the same. Several jurisdictions which require compliance with national requirements
based on international requirements or the international standards, regulate the services discussed
above (IFAC, 2019c). The type of service which is provided by the firms and accountants is
often dependent upon certain statutory requirements and the aspect which provides the highest
value to the users and clients of the financial statements. This assessment focuses on the role
played by auditors, the various services provided by them and the international standards set by
the respective bodies.
Auditing and quality
A very important role is played by auditors in their contribution to the credibility of the financial
statements and reports prepared by them (IFAC, 2019b). Financial stability is usually supported
by audits of high quality. The international auditing and assurance standards board (IAASB) is
considered to be a standard-setter of the global auditing. Hence has a public interest
responsibility of developing guidance and standards for the auditors for the facilitation of audits
of high quality (IFAC, 2019b). The achievement of such high quality audits helps in building
public confidence and trust in the financial reports and statements more broadly. The IAASB sets
high quality standards on the international level for auditing and assurance as well as other areas
related to the same and also facilitate their implementation and adoption (IFAC, 2019a). As a
result, the board improves the consistency and quality of audit practice throughout the globe and
enhances public confidence in the profession of auditing and assurance.
Auditing and assurance
In order to provide users and clients with assurance regarding the historical as well as current
financial statements of companies, it is important to focus on Independent audit. It is usually
believed that audits of high quality benefit the businesses and companies directly and benefits the
society and economy indirectly (IFAC, 2019c). Investment decisions can be significantly
influenced by company audits, which are also critical for investor confidence as well as for the
effective functioning of the capital markets. Audit can be defined as a highly valued service that

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provides insights which ultimately helps in making a difference in the operations, internal
controls and risk management of companies (Theaker, 2017). The companies that operate within
specific thresholds try to exempt from the requirements of having statutory audit for reducing
compliance costs with regulation. Such scenario might result in increasing the provision and
demand of audit practitioners that offer a wide range of audit and assurance services. The small
and medium-sized practices are most likely to have such demands since their clients are usually
companies of the same size which fall within the boundaries for exemption (IFAC, 2019c).
These services provided by the auditors play a vital role in improving the reliability of financial
statements reported by them.
Conclusion
It could be concluded that the consistency, compatibility, transparency, credibility and reliability
of financial information, statements and reports is increased and enhanced by the international
standards of high quality. Subsequently, these high quality financial statements and reports help
in enhancing the stability of the international financial infrastructure. The standards contribute to
the growth of the economy and help in maintaining efficient, fair and orderly capital markets.
They also help in fostering confidence in the emerging markets, which in turn increases global
investment.

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Reference List
IFAC, 2019a. Auditing & Assurance. About IAASB. [online] Available at:
<https://www.iaasb.org/> [Accessed on 06 February 2019].
IFAC, 2019b. Auditing & Assurance. Focus on Audit Quality. [online] Available at:
<https://www.iaasb.org/focus-audit-quality> [Accessed on 06 February 2019].
IFAC, 2019c. Global Knowledge Gateway. Audit & Assurance. [online] Available at:
<https://www.ifac.org/global-knowledge-gateway/audit-assurance?overview> [Accessed on 06
February 2019].
Theaker, A., 2017. What is public relations?. In The Public Relations Strategic Toolkit. 5th ed.
Abingdon, UK: Routledge.