PART A

International Standards on Auditing (ISA) have been approved by the International Auditing and Assurance Board (IAASB). Recently, the IAASB has issued a number of proposed ISAs for comment

The key enhancements to auditor reporting are:
Proposed ISA700 - Forming an Opinion and Reporting on Financial Statements
Proposed ISA701 - Communicating Key Audit Matters in the Independent Auditors Report
Proposed ISA260 - Communication with Those Charged with Governance
Proposed ISA570 -Going Concern
Proposed ISA705 - Modification to the Opinion in the Independent Auditor's Report
Proposed ISA706 - Emphasis of Matter Paragraphs and Other Matter Paragraphs in the
Independent Auditors Report
Briefly explain the nature and effect of these enhancements

PART B

In January of 2007 the Public Company Accounting Oversight Board (PCAOB) felt it necessary to issue a 14 page report commenting on over 20 shortcomings it had observed in the way auditors were addressing their responsibilities with respect to fraud.

Refer PCAOB Release 2007-001 January 22 - 2007: Observations on Auditors Implementation of PCAOB Standards Relating to Auditors' Responsibilities with Respect to Fraud pcaobus.org/Inspections/Documents/2007_01-22_Release_2007-001.pdf

Identify ten shortcomings

PART C

The Companies Auditors and Liquidators Disciplinary Board (CALDB) responds to applications mad by ASIC concerning auditors.

a) Briefly describe the powers of the Board
b) Go to the caldb.gov.au website and under the ‘Decisions' tab you will find CALDB decisions since January 2008. There are 15 verdicts. Briefly describe any five decisions including the breach and penalty applied.(i.e. facts and outcome)