In the audit of financial statements, auditors are required to comply fully with the International Standards on Auditing

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In the audit of financial statements, auditors are required to
comply fully with the International Standards on Auditing (ISAs).
In general terms, the International Auditing and Assurance
Standards Board (IAASB) takes the view that “an audit is an audit
and should be conducted in line with the same auditing standards.”
In 2009, (IAASB) issued Q & A publication on matters relevant
to audit of SMEs: “applying ISAs proportionately with the size and
complexity of an entity.”
Required: Discuss the IAASB’s Clarity project on ISAs in
relation to the audit of SMEs.