The IAASB has released the 2020 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. The latest edition of the handbook includes:

• ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures replacing ISA 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures. The handbook also includes conforming and consequential amendments from ISA 540 to other standards, with the exception of International Auditing Practice Note 1000, which will be updated for changes to ISA 540 (Revised), and ISA 315 (Revised 2019) in the 2021 IAASB Handbook. ISA 540 (Revised) is effective for audits of financial statements for periods beginning on or after December 15, 2019.
• Changes for the conforming amendments arising from the restructured International Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants, have been made in Volume 1 and 2 of the 2020 IAASB Handbook.
• The following standards, which are not yet effective, have been included in the back of Volume 1 and 2:
• ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement
• Conforming and Consequential Amendments to Other ISAs Arising from ISA 315 (Revised 2019)
• International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements
• ISQM 2, Engagement Quality Reviews
• ISA 220 (Revised), Quality Management for an Audit of Financial Statements
• Conforming and Consequential Amendments to Other ISAs Arising from the Quality Management Projects
• ISRS 4400 (Revised), Agreed-Upon Procedures Engagements

The handbooks can be downloaded from the IAASB website.

Coming Soon: New Online Platform for Digital Access

The first fully digital IAASB handbook will be available on a new web application, e-International Standards (eIS) soon. The platform is optimized for users through search functions, resources and references, and easy navigation. Follow the IAASB on Twitter and LinkedIn or register and subscribe via the IAASB website for launch details and announcements.

Reproducing and Translating the IAASB Handbook

To help adoption and implementation of the IAASB standards, stakeholders are invited to submit requests for permission to reproduce or translate the IAASB handbook online via the Online Permissions Requests or Inquiries system on the IFAC website.

The IAASB has published new documents related to its open consultation on the audits of less complex entities:

• Proposed supplemental guidance on auditor reporting to provide further guidance on modifications and other changes to the auditor’s report when using the proposed standard; and
• “Mapping” documents to help users navigate between existing, equivalent International Standards on Auditing and the requirements in the newly proposed International Standard on Auditing for Less Complex Entities (ISA for LCE).

The IAASB strongly encourages all interested stakeholders to provide their feedback on the proposed standard 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.

Stakeholders can submit responses through the “Submit Comment” button online.

These “mapping” documents illustrate how the requirements from the International Standards on Auditing (ISAs) have, or have not, been incorporated within the proposed new International Standard on Auditing for Audits of Less Complex Entities (ISA for LCE).

The latest edition of the handbook includes:

To continue to drive engagement and solicit feedback on its public consultation on a proposed new standard for audits of financial statements of less complex entities (LCE), the IAASB has published a targeted outreach plan. This plan details the IAASB’s focused efforts to facilitate feedback from different stakeholder groups through roundtables, presentations and other related activities. The plan is expected to evolve and will continue to be updated as events and activities are added or confirmed.

The landmark proposed new standard for audits of financial statements of less complex entities responds to demands to have a set of high-quality audit requirements tailored for the needs of less complex entities. The proposed new standard aims to provide a globally consistent approach at a time where several jurisdictional-specific less complex entities standards or related initiatives are arising.

The IAASB strongly encourages all interested stakeholders to provide their feedback on the proposed standard 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.

Stakeholders can submit responses through the “Submit Comment” button online. The Exposure Draft will also be available in French and Spanish in early September 2021.

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 IAASB has developed an outreach plan for its proposed new 

The IAASB in collaboration with IFAC invite you to join the final webinar in our quality management series, Bringing It All Together: Exploring the Components of the Quality Management System, on August 18 from 11 am–12 pm GMT on Zoom with livestreaming on YouTube. The webinar will address aspects of International Standard on Quality Management 1, including governance and leadership, information, communication, and networks.

ISQM 1 is part of the IAASB’s suite of quality management standards, issued in late 2020. The standards strengthen and modernize how firms approach quality management. They also mark an evolution from a traditional, more linear approach for quality control to an integrated quality management approach.

The webinar will be held in English and available on YouTube following the session. Participants joining live via Zoom will be able to submit questions.

• Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System
  • August 18, 11 am–12 pm GMT
  • Featuring IAASB members Julie Corden and Sachiko Kai and Deputy Director Natalie Klonaridis
  • Register Now

The recordings from the previous webinars in the series are available on YouTube:

• Webinar One: All You Need to Know about the Firm’s Risk Assessment Process
• Webinar Two: Resources: Expectations for Firm and Engagement Partners
• Webinar Three: What’s New in Firm’s Monitoring and Remediation Process

This webinar series is part of the IAASB’s implementation support efforts. Looking for additional resources on the suite of quality management standards? Check out the IAASB’s dedicated web page: iaasb.org/quality-management

La serie de webinars sobre gestión de la calidad en las firmas de auditoría, organizada por el IAASB en colaboración con la IFAC, profundiza en los aspectos del Estándar internacional sobre gestión de la calidad 1 del IAASB, gestión de la calidad para las firmas que realizan auditorías o revisiones de estados financieros u otras garantías o servicios relacionados.

La serie de webinars se centró en:

The Quality Management webinar series, hosted by the IAASB in collaboration with IFAC, takes a deep dive into aspects of the IAASB’s International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.

The webinar series focused on:

Today, the International Auditing and Assurance Standards Board (IAASB) published an exposure draft of its new, stand-alone standard for audits of financial statements of less complex entities. This landmark new draft standard responds to demands to have a set of high-quality requirements tailored for the needs of less complex entities (LCEs). The new standard for audits of financial statements of LCEs will provide a globally consistent approach at a time where several jurisdictional-specific LCE standards or related initiatives are arising. The release of the exposure draft is part of a broader effort to reduce complexity, improve understandability, and make International Standards on Auditing (ISAs) more scalable and proportionate to circumstances of audited entities.

“Smaller, less complex entities play a vital role in the world’s economy. The IAASB has prioritized addressing the needs of stakeholders representing these entities over the last eighteen months,” said IAASB Chair Tom Seidenstein. “Our new proposed standard’s objective is appropriately focusing the work of auditors through requirements designed to be proportionate to the typical nature and circumstance of less complex entities. We are not compromising on the quality of the audit.”

The IAASB strongly encourages all interested stakeholders to provide their feedback 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.

Stakeholders can submit responses through the “Submit Comment” button online. The Exposure Draft will also be available in French and Spanish in early September 2021. The IAASB is also planning outreach on the new draft standard; an outreach plan will be available on the IAASB’s website in late August 2021.

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.