PURPOSE AND AUTHORITY OF THE FUNDAMENTAL PRINCIPLES OF FINANCIAL AUDITING

ISSAI 200 provides the fundamental principles relevant for an audit of financial statements prepared in accordance with a Financial Reporting Framework. The principles are also applicable for circumstances when SAIs are engaged or have responsibilities to audit single financial statements and specific elements, accounts, or items of a financial statement and financial statements prepared in accordance with special purpose financial frameworks as well as summary financial statements. When reference are made in ISSAI 200 to audits of financial statements this includes such responsibilities.

ISSAIs 1000 to 1810 for financial audits may be applied as appropriate to such responsibilities. However, auditors are prohibited from making reference to the use of the ISSAIs if:
 the preconditions for an audit in accordance with the ISSAIs for financial audit not are in place
 the auditor is not able to comply with the authority attached to the ISAs and ISSAIs
The Fundamental Principles of Financial Auditing apply to all public sector audits of financialstatements, whether they are representing the whole of government, parts of government or single entities. ISSAI 200 Fundamental Principles of Financial Auditing represents the core of the detailed auditing standards found on level 4 of the ISSAI framework (e.g., ISSAIs 1000 to 1810). Theprinciples in ISSAI 200 can be used in three ways:
 To form the basis on which standards are developed,
 To form the basis on which consistent national standards are adopted.
 To form the basis for adoption of the Financial Auditing Guidelines (ISSAI 1000-1810) as the authoritative standards.

Reference to ISSAI 200 in audit reports or the auditor’s report should only be made if auditing standards have been developed or adopted that fully comply with all relevant principles of ISSAI 200. A principle is considered relevant when it deals with the type of audit or combinations of audit types and the circumstance or procedure is applicable. The principles do not override national laws, regulations or mandates.