1. Why adopting international standards?

2. Why global standards?

3. Why apply globally accepted standards? General: Globalization of capital markets and increased global businesses with global leadership Global economic crises International harmonization of standards generally Demand for increased transparency Audit specific: Auditing scandals in the 1990 th and early 2000

4. Driving forces for the use of auditing standards in the public sector Capital markets are not the driving force Demands from external stakeholders Increased political interest in financial reporting The financial crises highlights the need Improved integration into the audit profession

5. Private and public sector use of auditing standards Different driving forces, but the same need to adopt globally accepted standards Audit work will be carried out basically using the same standards for the private and public sector auditing

6. Private and public sector use of auditing standards Private sector: International standards for basic functions, such as financial reporting, before introducing international auditing standards. Public sector: Standards for financial reporting etc. often not in place. International standards for auditing created with the assumption that standards for basic functions are implemented.

7. Why use auditing standards? Equal requirements on working processes Exchange of experiences between auditors and audit organizations Basis for quality control procedures Credibility for audit work Reduces the expectation gap

8. Why Auditing Standards Some other standards? National Standards? ISSAI?ISA? The AuditorThe Reader Generally Accepted Auditing Standards!

9. Why International Standards on Auditing (ISAs) Cost effective to build on others work ISAs are globally accepted and INTOSAI is a global organization Represent best practice Provides detailed application material to achieve the requirements Together with the PNs fully adoptable in the public sector

10. INTOSAI and IAASB ”IAASB is delighted that we have an active working relationship with INTOSAI. We believe that the potential for a common core of auditing standards used by both Supreme Auditors and the private sector is a step towards common understanding and mutual acceptance of audit reports by the two sectors in a global context. IAASB has been very appreciative of the participation of INTOSAI members on our task forces and we hope the interaction will prove beneficial to all parties as new standards are completed and issued.” John Kellas - Chairman IAASB

11. In the future Even more demand for transparency Enhanced focus on audit quality Global standards for Good governance practices Integrated reporting (financial, environmental, governance etc.) to enhance transparency Financial data presented electronically (xbrl) In auditing: – Standards to deal with integrated reporting – Standards to deal with electronic financial data