The International Auditing and Assurance Standards Board (IAASB) seeks public comment by March 15, 2019 on its Exposure Draft of proposed ISRS 4400 (Revised), Agreed-Upon Procedures Engagements.

The demand for Agreed-upon procedures (AUP) engagements continues to grow across jurisdictions.Changes in regulation, such as the increase in audit exemption thresholds in many jurisdictions, have also driven increased demand for AUP engagements. This is especially relevant for smaller entities, as the increased audit exemption thresholds prompt stakeholders to look for alternative services to an audit.

To ensure that the IAASB’s standard on AUP engagements remains relevant in the current business environment, the IAASB proposes to enhance key concepts in the standard, including:

• The role of professional judgment in an AUP engagement.
• Disclosures relating to the practitioner’s independence or lack thereof.
• Guidance on appropriate or inappropriate terminology to describe procedures and findings in AUP reports.
• The use of a practitioner’s expert in an AUP engagement.
• Restrictions on the distribution and use of the AUP report.

In developing proposed ISRS 4400 (Revised), the IAASB has received significant stakeholder input, including feedback from its November 2016 Discussion Paper, Exploring the Demand for Agreed-Upon Procedures Engagements and Other Services, and targeted continuing stakeholder outreach.

About the IAASB 
The IAASB 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. 

A 2nd 90 minute webinar was hosted by the IAASB to discuss the key revisions to the auditor’s risk identification and assessment procedures, as introduced through the recently published ISA 315 (Revised) Exposure Draft. Listen to IAASB Task Force Chair Fiona Campbell as she goes through specific questions sent from stakeholders about the changes we are proposing.

The global search for an exceptional leader to Chair the International Auditing and Assurance Standards Board (IAASB) will be restarted by the Interim Nominating Committee.  Mr. Martin Baumann, who had been appointed to become Chair of the IAASB on January 1, 2019, has decided not to assume the post for personal reasons.

“I am disappointed that unforeseen personal circumstances will prevent me from taking on this important role,” said Martin Baumann. “I remain impressed with the public interest work that the IAASB has already achieved and continue to see remarkable opportunities for the future.”

The Interim Nominating Committee, which was formed by the Monitoring Group in February 2018 to conduct the process for the next IAASB Chair, will again follow an open, timely and transparent process to select the most suitable candidate to chair the IAASB for a 2019-2021 term.

Prof. Arnold Schilder, whose term as IAASB Chairman is scheduled to conclude at end of 2018, has agreed to stay on through early 2019, as necessary, to ensure a smooth transition to a new Chair.

"While we are disappointed that Mr. Baumann cannot take on the important role to lead the IAASB during this crucial period, we wish him our best in the future,” said Gerben Everts, Chair of the Monitoring Group. “We are pleased that Prof. Schilder has agreed to extend his service until a new Chair is found, and have asked the Interim Nominating Committee to restart this important search.”

“This is a crucial inflection point for high-quality International audit standard setting,” said Rachel Grimes, IFAC President. “It is disappointing that Marty is unable to assume the position, but we are confident that the Interim Nominating Committee will find a similarly well-suited, high-caliber candidate to lead the IAASB into the future.”

For more information about the work of the IAASB, visit www.iaasb.org.

About the IAASB
The IAASB 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 IAASB recently published its first update to stakeholders highlighting the IAASB’s efforts to appropriately reflect professional skepticism in its standards. The Professional Skepticism Communiqué also includes other relevant news and information and recent activities of the IESBA and IAESB related to professional skepticism.