The Conforming and Consequential Amendments to the IAASB’s Other Standards as a Result of the New and Revised Quality Management Standards are the limited amendments to the IAASB’s suite of standards in response to the quality management standards. The amendments address any actual or perceived inconsistencies between the quality management standards and the full suite of IAASB standards to ensure that all the standards operate in conjunction with each other without conflict.

The International Auditing and Assurance Standards Board (IAASB) approved a new work plan, A Public Interest Focus in Uncertain Times, during its December 2021 meeting. Pending approval by the Public Interest Oversight Board (PIOB), anticipated in early April 2022, the work plan will guide the IAASB’s work in 2022 and 2023, reflecting the IAASB Strategy for 2020-2023.

Sustainability and environmental, social, and governance (ESG) assurance are a prominent addition to the new work plan and will see increased time and resourcing for 2022–2023. In addition, the new work plan highlights candidate topics in the Audit and Review space (e.g., responding to assessed risks of material misstatement and the impact of technology on various standards) that the IAASB will consider for a further project to commence in 2023. A key focus will remain the progression and completion of projects underway at the start of 2022, including audits of financial statements of less complex entities, audit evidence, going concern, and fraud.

“Based on the increasing global attention, and urgency, around sustainability/ESG reporting and the assurance thereof, the IAASB is dedicating additional capacity and resources to this workstream. We are committed to acting with a sense of urgency, building off our existing platform of assurance standards that are already used worldwide,” according to IAASB Chair Tom Seidenstein. “Our collaboration with others and an expedited information gathering phase will allow us to determine the precise scope and timing of our efforts so we take the right action to meet the growing public demand.”

“While we’re awaiting PIOB approval, we want our stakeholders to know what is on our program for this year and 2023, and be able to plan accordingly,” said IAASB Technical Director Willie Botha. “The initiatives and projects in our work plan, especially sustainability/ESG assurance, are those our board believes currently are the most pertinent public interest issues to address in ensuring the continued credibility and confidence in our work as global audit and assurance standard setter.”

Extended External Reporting Guidance Renamed

To help stakeholders more readily identify and understand available guidance for assurance of sustainability/ESG reporting, the IAASB agreed to rename a key piece of guidance. The newly renamed Non-Authoritative Guidance on Applying ISAE 3000 (Revised) to Sustainability and Other Extended External Reporting Assurance Engagements was originally released in April 2021. It responds to key stakeholder-identified challenges commonly encountered when applying International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information to such engagements.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

The IFAC-IAASB less complex entities survey—part of the IAASB’s consultation on audits of financial statements of less complex entities—is open until January 14. While the IAASB encourages all interested stakeholders to respond to the consultation in writing, the survey provides a way to participate and provide feedback that is less time and resource intensive. The survey is available in English, French and Spanish by clicking the language selector in the survey’s top right corner. Survey responses will be analyzed by the IAASB alongside all other feedback and help shape the final standard; individual survey responses are confidential.

For additional information on the IAASB’s proposed new standard for audits of less complex entities, which was issued in July for a six-month consultation, visit iaasb.org/less-complex-entities.

Momentum is gathering for increased sustainability/environmental, social, and governance (ESG) reporting requirements for companies. Investors, policymakers, and a broad range of stakeholders seek higher quality, increasingly standardized reporting on companies’ performance on non-financial measure. And with this, demand for assurance engagements that enhance the degree of confidence of the intended users of sustainability/ESG reporting is growing.

We at the International Auditing and Assurance Standards Board (IAASB), the independent audit and assurance standard setter serving more than 130 countries, expect the drive for added corporate reporting and disclosure on sustainability and climate-related information only to accelerate. We see the trend moving from voluntary reporting commitments to requirements mandated by jurisdictions throughout the world. The European Union’s proposed Corporate Sustainability Reporting Directive is an important example in that direction. The establishment of the International Sustainability Standards Board (ISSB) by our counterpart organization, the IFRS Foundation, enhances the likelihood of a trusted and independent source developing globally accepted reporting standards as the basis of requirements.

As with financial reporting, the IAASB believes that market participants are best served when financial and other reported information benefits from external assurance, provided by professionals committed to the public interest and highest ethical standards. For this reason, in the past the IAASB has devoted significant energy to creating standards to govern assurance of non-financial information. We have a well-established umbrella standard, International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information, and subject-matter specific standards such as, ISAE 3410, Assurance Engagements on Greenhouse Gas Statements. In April of this year, we published guidance aimed at helping assurance professionals apply our umbrella standard to sustainability and other non-financial (or extended external reporting) assurance engagements.

We know that our work is only the beginning, a solid foundation to build upon. This is why we committed to do more work to enhance the assurance of sustainability/ESG reporting when we approved our new 2022-2023 work plan last week.

The IAASB agreed to dedicate capacity and resources to the assurance of sustainability/ESG reporting. Information gathering and research activities, using dedicated staff resources, to determine future IAASB action will commence in January 2022. This initial work will also determine the precise scope and timing of the IAASB’s efforts. The initial work will also include a willingness to collaborate with key stakeholders throughout the world, including the standard-setting and regulatory communities.

We recognize that our initial consultations could lead to:

• Developing new subject-matter specific standard(s) that build on and supplement ISAE 3000 (Revised);
• Targeted enhancements to ISAE 3000 (Revised), as necessary; or
• Other related actions that are necessary in the public interest. For example, revising our existing guidance or developing new guidance.

Our March 2022 IAASB meeting will the first opportunity to provide feedback, share views and discuss next steps (you can listen to our discussions via YouTube).

We are conscious that demand for enhanced requirements and guidance is high; it is why we are positioning the IAASB to act in a coordinated and responsive manner. 

The Technology Working Group of the International Auditing and Assurance Standards Board (IAASB) today released non-authoritative support material to help auditors understand how to plan an audit under International Standard on Auditing (ISA) 300, Planning an Audit of Financial Statements, when using automated tools and techniques (ATT).

The publication does not amend or override the ISAs, the texts of which alone are authoritative. Reading the publication is not a substitute for reading the ISAs. 

This publication highlights the impact of technology when applying certain aspects of the International Standards on Auditing (ISAs). It focuses on specific considerations for planning an audit in accordance with ISA 300, Planning an Audit of Financial Statements, that may be relevant when using automated tools and techniques.

This publication does not amend or override the ISAs, the texts of which alone are authoritative. Reading the publication is not a substitute for reading the ISAs.

In late July, the International Auditing and Assurance Standards Board (IAASB) opened a six-month public consultation on its landmark new proposed standard for audits of financial statements of less complex entities (LCEs).

While the IAASB encourages all interested stakeholders to respond to the consultation in writing, it recognizes that some may not have the time or resources to do so. To help, the International Federation of Accountants and the IAASB developed a survey to offer an alternative way to participate in the consultation and provide your views. The survey is open until January 14, 2022 and is available in English, French and Spanish by clicking the language selector in the survey’s top right corner.

Survey responses will be analyzed by the IAASB alongside all other feedback and help shape the final standard; individual survey responses are confidential.

Join the IAASB for the final LinkedIn Live session discussing the recently proposed new standard for audits of less complex entities on November 17 at 8 am EST. The session will feature IAASB Member Julie Corden, LCE Reference Group Member Andrew Brathwaite, and IAASB LCE Task Force Member Brendan Murtagh discussing what the proposed new standard could mean for audit firms and practitioners that serve less complex entities, including the benefits of the standard and what firms, engagement partners and teams need to consider when deciding to use it.

The previous sessions in the series are available on LinkedIn and YouTube. The first session addressed the journey to the proposed new standard and its key principles (watch on LinkedIn or YouTube). The second session addressed for which entities the proposed standard can be used, who makes decisions regarding use of the standard, and how those decisions are made (watch on LinkedIn or YouTube).

The IAASB strongly encourages all interested stakeholders to provide their feedback on the proposed new standalone standard for audits of less complex entities by January 31, 2022. The standard is relevant to users of financial statements, owners, management, and those charged with governance of entities, preparers of financial statements, legislative or regulatory authorities, relevant local bodies with standard-setting authority, professional accountancy organizations, academics, regulators and audit oversight bodies, and auditors and audit firms, among others.

The first fully digital International Auditing and Assurance Standards Board (IAASB) handbook of pronouncements is now live on a new web application, e-International Standards (eIS). The first iteration of the platform marks a milestone in the IAASB’s commitment to improving the usability of and access to its standards by harnessing technology. For the first time, users will be able to benefit from optimized search functions, cut and paste capabilities, and easy navigation.

“The launch of our digital standards platform responds to the demand for increased accessibility and is another step in pursuing our strategic objective of benefiting from technological innovation,” said IAASB Chair Tom Seidenstein. “Over time, we will continue to improve e-International Standards to account for user feedback and improve the usability of the platform and of the IAASB standards.”

eIS was launched by the International Federation of Accountants (IFAC) and developed collaboratively with IAASB, the International Ethics Standards Board for Accountants (IESBA), and the International Public Sector Accounting Standards Board (IPSASB). Designed to meet stakeholders’ needs, the platform allows for quick reference to other standard-setting boards’ standards and related resources, driving a strong connection between adherence to IAASB standards and the IESBA’s International Code of Ethics for Professional Accountants.

The platform is accessible via the IAASB website or at eis.international-standards.org.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

The International Auditing and Assurance Standards Board (IAASB) announces the following new appointments and re-appointments to take effect on January 1, 2022:

New Members

• Mr. William Edge, Chair, Australian Auditing and Assurance Standards Board
• Dr. Warren Maroun, Professor, School of Accountancy, University of the Witwatersrand, South Africa

Re-appointed Members

• Mr. Kai Morten Hagen, Technical Director at Den norske Revisorforening (Norwegian Institute of Public Accountants)
• Ms. Sachiko Kai, Technical Director, Japanese Institute of Certified Public Accountants
• Mr. Eric Turner, Former Director, Canadian Auditing and Assurance Standards Board

"It is a pleasure to welcome the new IAASB members and congratulate re-appointed members,” said Tom Seidenstein, IAASB Chair. “One of the IAASB’s hallmarks is our diversity in thought and experiences that strengthen our deliberations. I look forward to these new voices adding to that diversity and expanding our conversations.”

The IAASB also announces the re-appointment of Mr. Len Jui as its deputy chair for 2022.

“I am also extremely pleased that Len will continue serving as IAASB deputy chair," said Mr. Seidenstein. “Len’s dedication to the IAASB is tireless and we are collectively stronger because of his efforts.”

About the IAASB
The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.