The International Auditing and Assurance Standards Board^® (IAASB^®) today released ISA™ 800 (Revised), Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks, and ISA 805 (Revised), Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement.

Reporting on special purpose financial statements is linked to the IAASB’s new and revised Auditor Reporting standards issued in January 2015, in particular ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements, and new ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report. The amendments to ISA 800 and ISA 805 are limited to auditor reporting and are not intended to substantively change the underlying premise of these engagements in accordance with the extant ISAs.

“As a result of our more general work on auditor reporting, we found it necessary in the public interest to also make changes to ISA 800 and ISA 805,” explained IAASB Chairman Prof. Arnold Schilder. “Feedback from our stakeholders has helped us finalize these proposals and provide greater clarity about how the new auditor reporting enhancements apply in the context of special purpose financial statements.”

ISA 800 (Revised) and ISA 805 (Revised) will become effective at the same time as the auditor reporting standards addressing general purpose financial statements–for audits of financial statements for periods ending on or after December 15, 2016.

"The issuance of ISA 800 (Revised) and ISA 805 (Revised) marks another significant milestone in the IAASB’s continued work on the topic of auditor reporting," noted IAASB Technical Director Kathleen Healy.

“The board and its staff remain committed to promoting awareness of its new and revised Auditor Reporting standards and facilitating their effective implementation,” Ms. Healy added.

For more information, visit www.iaasb.org/auditor-reporting.

About the International Auditing and Assurance Standards Board(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).

About IFAC^®
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce. 

ISA 805 (Revised) deals with special considerations in the application of the ISAs to an audit of a financial statement or a specific element, account, or item of a financial statement.

It includes limited amendments to provide clarity about how the new and revised Auditor Reporting standards apply in the context of special purpose financial statements. These amendments are not intended to substantively change the underlying premise of these engagements in accordance with the extant ISAs.

ISA 800 (Revised) deals with special considerations in the application of the ISAs to an audit of financial statements that are prepared in accordance with a special purpose framework.

It includes limited amendments to provide clarity about how the new and revised Auditor Reporting standards apply in the context of special purpose financial statements. These amendments are not intended to substantively change the underlying premise of these engagements in accordance with the extant ISAs.

Audit quality is at the heart of the International Auditing and Assurance Standards Board^® (IAASB^®)’s work as the global auditing standard setter. Therefore, the IAASB today released its Invitation to Comment, Enhancing Audit Quality in the Public Interest: A Focus on Professional Skepticism, Quality Control and Group Audits (the ITC). This ITC highlights the board’s discussions in these three topic areas and indicates potential standard-setting activities that could enhance audit quality.

“We are committed to having a strong impact on audit quality—particularly as the environment in which audits are conducted evolves and becomes more complex,” stated Prof. Arnold Schilder, IAASB Chairman. “We believe that global use of the International Standards on Auditing™ is a fundamental part of this objective. In addition, we acknowledge the importance of continuing to strengthen the standards and being responsive to ongoing concerns about audit quality. It is essential that the standards reinforce the need for auditors to continue to be critical challengers, within a system of rigorous quality management.”

The IAASB released a companion document, Overview of the ITC, which summarizes the key areas the IAASB is exploring and the direction it may take.

“Responses to this consultation will guide the board’s work over the next few years, so it is essential that we hear from all stakeholder groups about where we should focus,” explained Kathleen Healy, IAASB Technical Director. “The Overview document, in particular, is designed to solicit feedback from and improve collaboration with investors, audit committees, and preparers. Other stakeholders may also find the Overview useful as a discussion and outreach document as they develop their comments.”

The IAASB’s Framework for Audit Quality, issued in 2014, explains the important role of auditors and their firms—as well as other stakeholders—in audit quality, and the contextual factors that affect it. It is an important reference document for this consultation.

How to Comment
The IAASB invites all stakeholders to respond to either the ITC or the Overview, each of which includes specific questions for respondents. To access the ITC and Overview and submit a comment, visit the IAASB’s website at www.iaasb.org.

The comment period for both publications is open through May 16, 2016.

The IAASB intends to supplement these public consultations with outreach events in 2016. In the upcoming weeks, additional tools and publications will be released on the IAASB’s website to assist stakeholders in understanding how the ITC and Overview are relevant to them and to facilitate responses. To be notified of these events and tools, please subscribe to the IAASB eNews.

About the International Auditing and Assurance Standards Board
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).

About IFAC^®
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

ISA 800 (Revised) deals with special considerations in the application of the ISAs to an audit of financial statements that are prepared in accordance with a special purpose framework.

It includes limited amendments to provide clarity about how the new and revised Auditor Reporting standards apply in the context of special purpose financial statements. These amendments are not intended to substantively change the underlying premise of these engagements in accordance with the extant ISAs.

IAASB Technical Director Kathy Healy hosts the December 2015 audio podcast featuring Chairman Arnold Schilder, Deputy Chair Chuck Landes, and IAASB members Annette Köhler, Rich Sharko, and Megan Zietsman as they discuss key activities and events from the board's December 7-11, 2015, meeting in New York. 

:01 – Introduction

:28 - Chairman's Overview

3:45 - Invitation to Comment: Enhancing Audit Quality in the Public Interest — A Focus on Professional Skepticism, Quality Control and Group Audits

7:44 - Professional Skepticism

11:17 - ISA 540 

14:14 - Approval of ISA 810 (Revised)

15:59 – Other Presentations and Outreach Activities

21:25 - Closing Remarks and Next Meeting