JEVELYN C.

VILLANUEVA

BSMA 4

Upon studying these learning materials, I have learned that the global independent standard-

setting body that serves the public interest by setting high-quality international standards which

are generally accepted worldwide is governed none other than by the International Auditing and

Assurance Standards Board (IAASB).

Historically speaking, the International Auditing and Assurance Standards Board (IAASB) was

founded in March 1978, and it was previously known as the International Auditing Practices

Committee (IAPC).

The IAPC’s initial work focused on three areas:

● object and scope of audits of financial statements,

● engagement letters and;

● general auditing guidelines

In 1991, the IAPC’s guidelines were recodified as International Standards on Auditing (ISAs).

The IAASB is the one who sets its standards in the public interest with the advice adopted from

IAASB Consultative Advisory Group (CAG) and under the oversight of the Public Interest

Oversight Board.
The following is the three strategic objectives being set by IAASBto focus IAASB priorities and

resources on during 2020‒2023:

 Increase the emphasis on emerging issues to ensure that the IAASB International

Standards provide a foundation for high-quality audit, assurance and related services

engagements.

 Innovate the IAASB’s ways of working to strengthen and broaden our agility,

capabilities, and capacity to do the right work at the right time.

 Maintain and deepen relationships with stakeholders to achieve globally relevant,

progressive and operable standards.

This Work Plan clearly shows how the IAASB intends to increase its focus on emerging issues,

and definitely completing the existing work that is already committed to and underway. In these

Work Plan, the IAASB anticipates standard-setting projects on going concern, fraud, and audit

evidence, and work to address the needs of auditors of Less Complex Entities, among other

topics.

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The Auditing and Assurance Standards Council (AASC) is the body authorized to establish and

promulgate generally accepted auditing standards (GAAS) in the Philippines. At present, AASC

pronouncements are mainly adopted from the standards and practice statements issued by the

International Auditing and Assurance Standards Board (IAASB).

The Auditing and Assurance Standards Council (AASC) was created in December 2005,

under the Philippine Accountancy Act of 2004, by the Professional Regulation Commission

upon the recommendation of the Board of Accountancy (BOA). The AASC is tasked to assist the

BOA to establish and promulgate auditing standards in the Philippines.

I have found out that the Auditing and Assurance Standards Council shall have 18 regular

members with a term of three years, renewable for another term, coming from the following:

No. of Member/s

Chairman 1

Board of Accountancy 1

Securities and Exchange Commission 1

Bangko Sentral ng Pilipinas 1

Commission on Audit 1

Association of CPAs in Public Practice 1

Philippine Institute of CPAs:

Public Practice 9

Commerce and Industry 1

Academe/Education 1

Government 1

Total 18

The AASC has adopted the following IFAC Implementation Guides:

● “Guide to Using International Standards on Auditing in the Audits of Small-and Medium-

sized Entities,” released by the IAASB in December 2007

● “Guide to Quality Control for Small-and Medium-sized Practices” released by the

IAASB in March 2009