IAASB Issues Auditing Standard on Related Parties

Following the consideration and approval of due process by the Public Interest Oversight Board (PIOB), the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), today released International Standard on Auditing (ISAs) 550 (Revised and Redrafted) “Related Parties” plus three clarity redrafted auditing standards (ISA 250 “Consideration of Laws and Regulations in an Audit of Financial Statements”, ISA 510 “Initial Audit Engagements-Opening Balances”, and ISA 570 “Going Concern”) – chairman John Kellas commented on ISA 550, pointing at cleared definition of auditor’s responsibilities in respect to accounting, reporting and presentation of financial statements to control material misstatements due to fraud.