Today, IFAC  published a ‘Practice Transformation Action Plan – A Roadmap to the Future’ (the Plan), which covers four key focus areas for small- and medium-sized practices (SMPs):

• Embrace Change
• Leverage Technology
• Focus on Talent Management
• Evolve the Firm Operating Model and Build Advisory Services

The Covid-19 pandemic is an accelerator for the adoption of technology. Many firms are now operating virtually and supporting employees through flexible work arrangements. These extraordinary circumstances also offer practitioners significant opportunities to adapt and service a rapidly changing world. As trusted business advisers, they are best positioned to provide clients with a range of services to help navigate these difficult and uncertain times.

SMPs may still be in a ‘fire-fighting’ phase but want to be proactive and ready to adapt to radical and unplanned changes. Effective transformation requires strong leadership, new approaches to training and continued learning, and an emphasis on providing relevant, value-added services.

The Plan was developed with advice and guidance from the IFAC SMP Committee and recognizes that every firm will be different. The actions taken will need to be tailored to each firm’s circumstances and objectives to be successful.

We’ve created a dedicated ‘practice transformation’ web page, featuring case studies, examples of how Member Organizations are supporting their firms to innovate and evolve, as well as additional tools and resources.

Now is the time for practitioners to lead and become part of the solution for their clients and for their own future as we enter a whole new world.

On April 29, IAASB issued their official guidance on auditor considerations relating to going concern in light of changing environment due to the COVID-19 pandemic.

 Click HERE to read more.

Szilvia Sramko joined the technical team of the International Ethics Standards Board for Accountants (IESBA) in February 2018. She currently leads Work Stream 1 – Independence Standards for Sustainability Assurance of the Sustainability Task Force. Previously, she provided technical support to other IESBA’s workstreams, such as the Engagement Team/ Group Audits, Fees and Non-Assurance Services projects, and the Benchmarking initiative.

Prior to joining the IESBA, Ms. Sramko was Deputy Head of Department at the Auditors’ Public Oversight Authority in Hungary (Budapest). Before that, she served in several roles at the Ministry for National Economy in Hungary and participated in preparing legislative proposals to transpose the amendments to the European Union’s Accounting and Audit Directives into the national law.

Ms. Sramko holds a Doctor of Law degree from Eotvos Lorand University (Budapest, Hungary) along with a Master 1 degree in comparative law from Université Paris II Pathéon-Assas and Eotvos Lorand University (Paris, France / Budapest, Hungary).

The International Auditing and Assurance Standards Board (IAASB) today released the exposure draft of proposed International Standard on Auditing (ISA) 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)s.

Proposed ISA 600 (Revised) deals with special considerations for audits of group financial statements (group audits). Group audits are often more complex and challenging than single-entity audits because a group may have many entities or business units across multiple jurisdictions, and component auditors may be involved.

“This proposed standard is critically important as many of today’s audits are group audits, including audits of the largest and most complex organizations around the world,” said Tom Seidenstein, IAASB Chair. “The proposed revised standard addresses quality risk issues identified by audit regulators and benefits from the input of a wide range of stakeholders.”

The proposed standard introduces an enhanced risk-based approach to planning and performing a group audit. This approach appropriately focuses the group engagement team’s attention and work effort on identifying and assessing the risks of material misstatement of the group financial statements, and designing and performing further audit procedures to respond to those assessed risks. The proposed standard recognizes that component auditors can be, and often are, involved in all phases of a group audit. In these circumstances, the proposed standard highlights the importance of the group engagement team’s involvement in the component auditor’s work.

In addition, the proposed standard:

• Clarifies the scope and applicability of the standard.
• Emphasizes the importance of exercising professional skepticism throughout the group audit.
• Clarifies and reinforces that all ISAs need to be applied in a group audit through establishing stronger linkages to the other ISAs, in particular to proposed ISA 220 (Revised), ISA 315 (Revised 2019) and ISA 330.
• Reinforces the need for robust communication and interactions between the group engagement team, group engagement partner and component auditors.
• Includes new guidance on testing common controls and controls related to centralized activities.
• Includes enhanced guidance on how to address restrictions on access to people and information.
• Enhances special considerations in other areas of a group audit, including materiality and documentation.

In consideration of COVID-19’s impact, the IAASB is departing from the Board’s normal 120-day comment period for public consultations. Therefore, the exposure draft of proposed ISA 600 (Revised) is open for public comment until October 2, 2020.

The IAASB invites all stakeholders to comment on the Exposure Draft via the IAASB’s website.

Diane Jules is a former director of the International Ethics Standards Board for Accountants (IESBA). Since assuming the role in 2016, Ms. Jules worked to advance IESBA's strategic goals and priorities. She was integral to developing ethics and independence standards for global application and works closely with the chair and the IESBA to promote awareness, use and adoption of the International Code of Ethics for Professional Accountants (including International Independence Standards). Ms. Jules’ responsibilities included building and strengthening IESBA’s relationships with its stakeholders which include investors, regulators, academics, firms and national standards setters. She oversaw IESBA’s operational activities, specifically in relation to its communication initiatives.

Ms. Jules was the key staff on the IESBA’s Non-Assurance Service Task Force and currently oversees the Board’s workstreams on technology and sustainability. Following the successful development and June 2019 launch of the IESBA eCode — a digital platform for accessing and navigating the IESBA Code. Prior to joining the IESBA, Ms. Jules was a Senior Technical Manager at the International Auditing and Assurance Standards Board, and before that an Assistant Chief Auditor at the U.S. Public Company Accounting Oversight Board (PCAOB). Prior to her career in standard-setting, Ms. Jules held various audit and professional practice positions, including as an Assurance Manager at Grant Thornton, LLP.

Ms. Jules was among the 77 women listed as Crain’s New York Business 2019 Notable Women in Accounting and Consulting. She is an active member of the New York State Society of CPAs and the American Institute of CPAs. Ms. Jules has been featured in industry publications, including the Strategic Finance Magazine and the Journal of Accountancy. She conducts editorial reviews on technical submissions to the Advances in Accounting Education: Teaching and Curriculum Innovations Series and the CPA Journal.  She holds a Bachelor of Science degree in Accounting and Finance from the University of Maryland College Park and is a licensed certified public accountant (CPA). She is also a chartered global management accountant (CGMA).