An audit is an inspection carried out by an independent (impartial) person of an entity's financial statements, indicating whether they are honest and truthful and whether they conform to an "information framework applicable financial instrument” (IFAC 200, 2014). For most entities in the UK, audits are legal requirements under the Companies Act 2006. Their aim is to assure shareholders (sole recipients) of the accuracy of the financial statements in their opinion via a report, supported by sufficient and applicable evidence. This encourages investment by improving the user's level of confidence. This, together with “all general objectives of the independent auditor” (IFAC 200, 2014), constitute ISA 200 and apply to most frameworks. Ethical requirements, professional skepticism and appropriate response to audit risks are required by ISA 200. ISA 315 (International Standards on Auditing) was introduced to ensure that auditors work to the same professional standards in declaring clear responsibilities. It should be noted that ISAs are useful for establishing professional standards, but do not address responsibilities related to legislation (ISA 200), so auditors must personally ensure that they comply with the law, which takes precedence over ISAs. All ISA standards have a similar presentation: introduction, objectives, definitions, requirements and application and any other explanatory documents. Being long, this arrangement helps listeners quickly view specific information when needed. ISA 315 (revised, see Appendix A) states that when undertaking an audit, the auditor has an obligation "to identify and assess the risks of material misstatement in the financial statements, understanding the entity and its environment” (IFAC, 2013). This means that the auditor should know the entity and be able to identify issues that are/may...... middle of paper ...... thus increasing user confidence based on the report d audit reflecting the honesty and fairness of the entity. .Having the ISA ensures that all auditors are aware of their responsibilities, creating equality for all entities. It is important to differentiate between fraud and error during an audit because unfair blame can permanently tarnish an entity's reputation, thereby reducing shareholder confidence. There is always a risk that material misstatements may occur, whether due to fraud or error. It's impossible to eliminate it completely because there is too much information and not enough time or resources to review it all. With the emergence of larger and more complex entities, ISA 315 has never been more relevant, with shareholders needing assurance that financial statements have been reviewed and are considered honest and true in the auditor's opinion..