2.3 International, regulatory framework for audit and assurance services

The international regulatory framework for audit and assurance services includes several key organizations and standards that aim to promote consistency, quality, and transparency in auditing practices worldwide. Here are the main components of the international regulatory framework:

1. International Federation of Accountants (IFAC): IFAC is the global organization for the accountancy profession and sets international auditing, assurance, ethics, and quality control standards. It develops and promotes the adoption of International Standards on Auditing (ISAs) through its independent standard-setting board, the International Auditing and Assurance Standards Board (IAASB).
2. International Auditing and Assurance Standards Board (IAASB): The IAASB, established by IFAC, is responsible for setting the International Standards on Auditing (ISAs). The ISAs provide guidance on the responsibilities of auditors, audit planning and procedures, risk assessment, evidence gathering, and reporting. They are recognized as the global benchmark for auditing standards.
3. International Ethics Standards Board for Accountants (IESBA): The IESBA, under the umbrella of IFAC, sets the International Code of Ethics for Professional Accountants. This code establishes ethical requirements for auditors and other professional accountants, including independence, integrity, objectivity, confidentiality, and professional competence and due care.
4. International Financial Reporting Standards (IFRS): Although not specific to auditing, the adoption of IFRS globally has a significant impact on auditing practices. Auditors need to understand and apply the relevant accounting standards to ensure that financial statements are prepared in accordance with IFRS.