Newsletters & eNews
Aug 20, 2015
IAASB eNews: August 2015
- Recent IAASB Releases
- Spotlight on the IAASB’s Efforts to Respond to Calls to Enhance Audit Quality
- Professional Skepticism
- Outreach and Collaboration
- Redesigned Global Translations Database Now Available
- The IAASB is Hiring
- Next Meetings
1. Recent IAASB Releases
The following publications have recently been released on the IAASB’s website:
- Final changes to the International Standards on Auditing™ (ISA™), Addressing Disclosures in the Audit of Financial Statements–Revised ISAs and Related Conforming Amendments. These changes aim to focus auditors on disclosures throughout the financial statement audit. The changes will be effective for audits of financial statements for periods ending on or after December 15, 2016. As a complement to these revisions, IAASB staff has also developed a publication for auditors that describes financial reporting disclosure trends and their possible implications from an audit perspective and highlights how the International Standards on Auditing as revised guide the auditor in addressing disclosures.
- An Exposure Draft, Proposed Amendments to the IAASB’s International Standards—Responding to Non-Compliance or Suspected Non-Compliance with Laws and Regulations, which focuses on proposed amendments to ISA 250, Consideration of Laws and Regulations in an Audit of Financial Statements (with less extensive changes proposed to seven other standards), in response to the International Ethics Standards Board for Accountants® (IESBA®) May 2015 Exposure Draft, Responding to Non-Compliance with Laws and Regulations. Comments on the IAASB’s Exposure Draft are due by October 21, 2015.
- An Exposure Draft, Proposed International Standard on Auditing (ISA) 810: Engagements to Report on Summary Financial Statements. The proposed amendments are a result of the IAASB’s new and revised Auditor Reporting Standards, which address auditor reporting on general purpose financial statements. The deadline for comments is November 2, 2015.
- A Staff Audit Practice Alert addressing the Responsibilities of the Engagement Partner in Circumstances when the Engagement Partner Is Not Located Where the Majority of the Audit Work is Performed. This publication is an initial response to concerns, including those raised by certain regulators and audit oversight bodies, and serves to remind auditors of the responsibilities of the engagement partner described in the ISAs.
- A publication, Exploring Assurance on Integrated Reporting and Other Emerging Developments in External Reporting, issued by the IAASB’s Integrated Reporting Working Group. The IAASB established the Working Group to guide it in responding to these developments most effectively in the public interest.
2. Spotlight on the IAASB’s Efforts to Respond to Calls to Enhance Audit Quality
At this meeting, the IAASB agreed to issue a combined Discussion Paper addressing key topics in its Work Plan for 2015–2016 relevant to enhancing audit quality, in particular quality control, group audits, special audit considerations relevant to financial institutions, and professional skepticism. The IAASB intends to issue the Discussion Paper in December 2015 with a 150-day comment period, supported by outreach in 2015 and 2016. Feedback from the Discussion Paper will inform the development of standard-setting project proposals, expected to be presented to the IAASB and the IAASB Consultative Advisory Group in September 2016. Discussion on the planned approach and issues relating to the four topics continues to be a prominent feature of the IAASB’s outreach activities.
3. Professional Skepticism
During its June 2015 meeting, the IAASB also hosted a panel discussion on the topic of professional skepticism. IAASB member Annette Köhler, who chairs the Professional Skepticism Working Group, introduced the topic. The panel was comprised of: Jeremy Justin, Canadian Public Accountability Board; Helen Munter, US Public Company Accounting Oversight Board; Doug Prawitt, Brigham Young University; and Cindy Fornelli, Center for Audit Quality. The Professional Skepticism Working Group is comprised of representatives from the IAASB, the IESBA, and the International Accounting Education Standards BoardTM in acknowledgement that actions by the three independent standard-setting boards may be appropriate to enhance professional skepticism.
4. Outreach and Collaboration
The IAASB has continued the extensive outreach program contemplated in its Strategy. It has compiled a detailed listing of its outreach activities. Recent activity of note includes:
- Annual meeting of the IAASB-National Auditing Standard Setters Liaison Group to exchange views on the IAASB’s current initiatives as well as national developments relevant to the IAASB’s work.
- Continued dialogue with the International Forum of Independent Audit Regulators and its Standards Coordination Working Group, and the International Organizations of Securities Commissions on the IAASB’s new projects related to enhancing audit quality.
- Discussions with international supervisors, prudential regulators, and audit leaders in the banking and insurance industries to inform the project relating to special audit considerations relating to financial institutions.
- Participation in various events sponsored by IFAC and its member organizations, including Accounting & Accountability for Regional Economic Growth/Contabilidad y Responsibilidad para el Crecimiento Economico Regional (CReCER), Pan African Federation of Accounting Africa Congress of Accountants, Fédération des Experts Comptables Européens, Institute of Chartered Accountants of the Caribbean, and Institute of Chartered Accountants in India.
- Country-specific outreach to South Africa and the US, including meetings with investors, regulators, accounting firms, public sector organizations, professional accountancy organizations, and other thought leaders.
- Continued engagement with accounting firms, through meetings with the Global Public Policy Committee, Forum of Firms, and Small and Medium Practices Committee, on both strategic and technical matters.
In addition, the IAASB has responded to the US Public Company Accounting Oversight Board (PCAOB) Staff Consultation Paper on “The Auditor’s Use of the Work of Specialists.”
5. Redesigned Global Translations Database Now Available
IFAC has revamped its database of translated international standards, handbooks, and other resources. The new version is searchable and filterable, by language, status, source, and publication year.
6. The IAASB is Hiring
The IAASB is recruiting at both the Senior Technical Manager and Technical Manager levels for its staff team based in New York. For complete job descriptions and required skills and experience for these roles, see Working at IFAC. Qualified candidates should send their resume to firstname.lastname@example.org.
7. Next Meetings
The IAASB will meet September 21-25, 2015, in New York, USA. The agenda and meeting materials are posted approximately three to four weeks in advance on the IAASB Meetings page. Members of the public may register to observe the meetings and registration closes one week before the first day of the meeting. The next IAASB CAG meeting is scheduled for September 15-16, 2015, in New York, USA.