The Application of ISA / IAPS in Auditing for SMEs

Abstract

The financial statement audit activity has incorporated assurance, associated with professional contracts and commitments, with the objective of providing reasonable assurance through evidence. This concept raises difficulties with respect to the expression assurance, since it translates certainty, confidence, security, assertion, affirmation. The accounting field seeks to provide reasonable security to improve the quality of information and reduce business risk. Assurance extends beyond testing financial information and seeks to verify factual and even qualitative information that pertains to business practices. Assurance, then, is not predictive, but tests the decision of whether the businesses worked in the past or not, the foregoing makes it possible to highlight that, according to current regulations, accountants and auditors should change their theory and practice of the audit because in the assurance the practicing professional undertakes that the information contained in the financial statements represents the financial position, performance and cash flows in accordance with IFRS / IFRS and for this he undertakes to carry out an examination that reasonable security of it.