What an ISA generally contains?

The IAASB’s pronouncements do not override local laws or regulations. If local laws or regulations differ from, or conflict with, the IAASB’s standards then a professional accountant should not state that he has complied with the IAASB’s standards unless he has fully complied with all of those relevant to the engagement.
 

International Standards on Auditing (ISAs) are written in the context of an audit of financial statements by an independent auditor. They are to be adapted as necessary when applied to audits of other historical financial statements.

Each ISA generally contains:

• an introduction

• objectives

• definitions (if necessary)

• requirements which are shown by the word “shall” and are to be applied as relevant to the audit

• application and other explanatory material which is for guidance only.

ISQCs apply to all services carried out under the IAASB’s engagement standards (ISAs, ISREs, ISAEs and ISRSs).

The other international standards (ISREs, ISAEs and ISRSs) contain:

• basic principles and essential procedures (identified in bold type and by the word “should”), and

• related guidance in the form of explanatory and other material, including appendices.

The basic principles and procedures must be followed. In exceptional circumstances, a professional accountant may judge it necessary not to follow a relevant essential procedure in order to achieve their objectives. In these circumstances, the auditor must be prepared to justify the departure from the requirements of the standard.