Evaluating the Use of International Standards for Assurance Engagements by Non-accounting Practitioners

47 Pages Posted: 12 Sep 2016 Last revised: 2 Sep 2022

See all articles by Qingling Ge

Qingling Ge

University of New South Wales (UNSW)

Roger Simnett

Deakin University; UNSW Australia Business School, School of Accounting

Shan Zhou

The University of Sydney

Date Written: 18 07, 2022

Abstract

When revising International Standard for Assurance Engagements (ISAE) 3000, the International Auditing and Assurance Standards Board (IAASB) determined that public interest would be best served if all competent practitioners (including non-accounting practitioners) were able to use the ISAEs. Conditions of use imposed were that the assurance report should disclose the engagement’s underpinning ethics and quality control frameworks. While explicit recognition may encourage wider use by non-accounting practitioners, imposed conditions may deter such use. Using a pre-post design on 4,075 international assurance engagements, we identify increased use of ISAEs by non-accounting practitioners since its revision, and greater disclosure of underpinning ethics and quality control frameworks. Nonetheless, we still find breaches of conditions of use of ISAEs, highlighting the IAASB’s dilemma in encouraging broader use of ISAEs, but with little enforcement ability. Switches to ISAEs by non-accounting practitioners result in enhanced disclosures of assurance procedures and independence, and increased client bases.

Keywords: Accounting Practitioners, Assurance Engagements, Ethics, Greenhouse Gas, Other Assurance Providers, Quality Control

Suggested Citation

Ge, Qingling and Simnett, Roger and Zhou, Shan, Evaluating the Use of International Standards for Assurance Engagements by Non-accounting Practitioners (18 07, 2022). Available at SSRN: https://ssrn.com/abstract=2837397 or http://dx.doi.org/10.2139/ssrn.2837397

Qingling Ge

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

Roger Simnett (Contact Author)

Deakin University ( email )

75 Pigdons Road
Victoria, Victoria 3216
Australia

UNSW Australia Business School, School of Accounting ( email )

Sydney, NSW 2052
Australia
+61 2 9385 5825 (Phone)
+61 2 9385 5925 (Fax)

Shan Zhou

The University of Sydney ( email )

University of Sydney
Sydney, NSW 2006
Australia

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