ALL PRACTICING MEMBERS OF THE INSTITUTE

Dear Member

APPLICABILITY OF THE CLARIFIED ISAs

Further to Circular 10/2010 dated November 8, 2010 on the captioned subject the Council in its 222nd meeting held on December 24, 2010 has approved the applicability of the Clarified ISAs with the exception of ISA 600 ‘Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors). The clarified ISAs with the exception of ISA 600 will be effective for audits of financial statements for periods beginning on or after December 15, 2010. However, earlier compliance is encouraged.

It may be noted that the existing ISA 600 ‘Using the work of Another Auditor’ will continue to be applicable till further notice.

Further, clarified ISQC 1 – “Quality Control for Firms That Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements” shall be mandatory for all firms conducting audits of financial statements of listed and public interest entities for accounting periods beginning on or after December 15, 2010.