The Korean Institute of Certified Public Accounts. The Korean Institute of Certified Public Accounts(KICPA) was formed in 1945 with a membership of only twelves CPAs

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Subject The new risk-based international auditing standards to be adopted
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In keeping pace with the adoption of the IFRSs next year, the new risk-based international auditing standards will be adopted.

On April 25th, the financial supervisory authority announced that the Korea Auditing and Assurance Standards Board (KAASB), an auditing standards setter under the KICPA, decided to adopt the New ISAs developed by the IFAC and filed with the financial supervisory authority last week for official approval.

The new international auditing standards are different from the existing standards in that under the new ISAs, financial and human resources can be focused on high risk areas, allowing for ‘risk-oriented’ audits. Also they require group auditors to lead the overall group audit engagement by closely cooperating with component auditors.

The Korean financial supervisory authority will have 1~2 months to review before it decides whether to approve the proposed translated version of the New ISA.

A source of the KICPA said “The new auditing standards allow a more careful assessment of potential risks of companies, enhancing audit quality. We will make sure that the new auditing standards will be implemented without hiccups by offering quality training to accounting practices and audit teams once we get the approval from the financial supervisory authority.”

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