An independent standard-setting body that operates under the auspices of the International Federation of Accountants (IFAC). The IAASB’s main objective is to serve the public interest by setting high-quality international standards for auditing, quality control, review, other assurance, and related services and facilitating the convergence of international and national standards. Key points about the IAASB:
- Mission: The IAASB aims to enhance the quality and consistency of practice worldwide and strengthen public confidence in the global auditing and assurance profession.
- Standards: The IAASB develops and issues International Standards on Auditing (ISAs), Quality Control (ISQCs), Review Engagements (ISREs), Assurance Engagements (ISAEs), and Related Services (ISRSs).
- Composition: The IAASB consists of 18 members, including practitioners, public members, and non-practitioners. Members are appointed by the IFAC Board based on recommendations from the IFAC Nominating Committee.
- Due process: The IAASB follows a rigorous due process in developing its standards, which includes public consultations, exposure drafts, and consideration of stakeholder feedback.
- Collaboration: The IAASB works closely with national standard setters, regulators, and other international organizations to promote the adoption and implementation of its standards globally.
- Monitoring Group: The IAASB is overseen by the Monitoring Group, which consists of international regulatory bodies and organizations responsible for monitoring the international audit-related standard-setting process.
The IAASB plays a crucial role in promoting high-quality, consistent, and reliable auditing and assurance practices worldwide, contributing to the integrity of financial reporting and enhancing investor confidence in the global capital markets.