ISA stands for International Standards on Auditing; used to predict past performances and profitability and stability.

• A. International Standards on Accounting
• B. Internal Standards on Auditing
• C. International Standards on Auditing
• D. Industry Standards on Assurance

Answer: (C)

ISA stands for International Standards on Auditing. These standards guide auditors in conducting audits of financial statements to ensure the work is planned, evidence is gathered properly, and the audit opinion is reported consistently and with professional care. They are issued by the International Auditing and Assurance Standards Board and define what auditors must do, not how a company’s past performance or future profitability should be forecast. The idea of predicting past performance or stability isn’t what these standards are for; they set the framework for how audits are performed. The other options don’t fit because they refer to accounting rather than auditing, use the wrong terminology, or point to terms that aren’t the formal global auditing standards.