Which body adopts ISAs it considers applicable for the UK?

Which body adopts ISAs it considers applicable for the UK?

• A. Auditing Practices Board
• B. IAASB
• C. Financial Reporting Council
• D. Department for Business

Answer: (A)

In the UK, auditing standards are developed internationally by the IAASB, but the body that decides which ISAs apply for UK audits and issues the UK-adapted standards is the Auditing Practices Board. The APB (as part of the FRC) takes the ISAs and determines their applicability in the UK, producing ISA (UK) standards for use in UK audits. The other bodies don’t carry out this adoption role: the IAASB creates the international standards, the FRC oversees the overall regulatory framework but does not directly adopt the UK standards, and the Department for Business has no role in auditing standards.

In the UK, auditing standards are developed internationally by the IAASB, but the body that decides which ISAs apply for UK audits and issues the UK-adapted standards is the Auditing Practices Board. The APB (as part of the FRC) takes the ISAs and determines their applicability in the UK, producing ISA (UK) standards for use in UK audits. The other bodies don’t carry out this adoption role: the IAASB creates the international standards, the FRC oversees the overall regulatory framework but does not directly adopt the UK standards, and the Department for Business has no role in auditing standards.