The IAASB invites you to listen in to a high-level roundtable discussion between global leaders, stakeholder groups and the IAASB addressing differences between public perceptions and the auditor’s responsibilities as well as feedback on the new and revised auditor reporting standards on September 28 at 8:15 am live streaming on YouTube. This roundtable, the second in part of an IAASB series, will:

• Consider the “expectation gap” with regards to fraud and going concern, which includes (among others) knowledge, performance, and evolution gaps;
• Stimulate discussions with stakeholders to better understand expectations for auditors in relation to fraud and going concern in financial statement audits, and explore how this “expectation gap” may be narrowed; and
• Gather stakeholder views on the implementation of the IAASB’s new and revised auditor reporting standards, including how practical challenges and concerns are being address and whether there is global demand for additional information in the auditor’s report to improve transparency.

Moderated by IAASB Deputy Chair Fiona Campbell, the September 28 roundtable participants, including governance experts, corporate directors, academics, auditors and audit profession leaders, audit regulators, and representatives from banking, investor and ratings groups will address, among other topics:

• The main causes of differences between public perception and auditor’s responsibilities with regard to fraud and going concern in audits of financial statements;
• What can be done across the external reporting ecosystem to address these differences; and
• New auditor’s reports, including Key Audit Matters (KAM) and if the IAASB standards issued in 2016 have increased confidence in audits.

This discussion will help the IAASB determine appropriate responses to global conversations on audit and the direction of future projects. It will also feed into the IAASB’s post-implementation review of the auditor reporting standards released in 2016, which includes the current auditor reporting survey for stakeholders. Stakeholders who are interested in these issues are encouraged to respond to the survey as well as read the recently released Discussion Paper on fraud and going concern.

We hope you are able to listen in to the group sessions on YouTube. We will also post the full sessions, including breakout small group discussion we aren’t able to live stream, online following the event—follow us on Twitter and YouTube or register/subscribe for updates and announcements.

Roundtable Agenda
September 28, 2020, 8:15-8:45 am EDT and 9:30-10:00 am EDT
IAASB YouTube

Save the date for the final IAASB roundtable in this series: 

David Damant passed away in August 2020.

Mr. Damant’s career included decades of service in audit, accounting and investing and asset management. He was the first independent chair of the IAASB’s Consultative Advisory Group from 2004 to 2010. Upon his appointment, then-President of the International Federation of Accountants Rene Ricol said, “Damant has the experience and integrity to chair the IAASB CAG and present important public interest perspectives. High-quality auditing standards are needed in every part of the world to build investor confidence in capital markets. The support of independent regulators, users and preparers is critical to creating acceptance of the IAASB’s standards.”

During the course of his career, Mr. Damant was the president of the European Federation of Financial Analysts Societies, co-chairman of the International Council of Investment Associations and a member of the Board and Executive and Steering Committees of the International Accounting Standards Committee.

The International Auditing and Assurance Standards Board’s Audit Evidence Working Group has published a Project Update for International Standard on Auditing (ISA) 500, Audit Evidence. The Update includes details about its information gathering activities, issues identified to date, and the way forward for audit evidence. 

Based on its information gathering, the Audit Evidence Working Group developed an initial listing of possible issues and categorized the issues into three overarching topics:

• Changes in the source of information and how the information is processed, communicated, and used.
• Continual developments in technology.
• Professional skepticism.

The Audit Evidence Working Group is in the process of developing a project proposal for the IAASB’s consideration at its December 2020 meeting.

The IAASB’s Audit Evidence Working Group has published this Project Update for ISA 500, Audit Evidence, to update stakeholders about its information gathering activities, issues identified to date, and the way forward.

The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group today published illustrative examples for auditing expected credit loss (ECL) accounting estimates.

The examples illustrate how an auditor could address certain requirements of ISA 540 (Revised). They were developed to assist the auditor in understanding how ISA 540 (Revised) may be applied to:

• International Financial Reporting Standard (IFRS) 9 Impairment (ECL) – Credit Card
• IFRS 9 Impairment (ECL) – Significant Increase in Credit Risk
• IFRS 9 Impairment (ECL) – Macroeconomic Inputs and Data

The examples illustrate accounting estimates with varying characteristics and degrees of complexity. Each example illustrates a selection of requirements from ISA 540 (Revised). Not all requirements are addressed in each example, nor do they cover all parts of those requirements that have been selected. The requirements selected across each example vary to illustrate different aspects of ISA 540 (Revised) and to focus on those requirements that are most relevant to the example.

The three ECL examples are intended to be read together, as requirements that are addressed in one example may also be relevant to another example. For example, the Macroeconomic Inputs and Data example is focused primarily on the audit implications of such data, and does not repeat material in the other examples, which nevertheless may be relevant and applicable to that example more broadly.

These examples do not constitute an authoritative pronouncement of the International Auditing and Assurance Standards Board (IAASB), nor do they amend, extend or override the ISAs or other of the IAASB’s International Standards. It is not meant to be exhaustive and reading these examples is not a substitute for reading the ISAs.

Simple and complex illustrative examples, which demonstrate how an auditor may address selected requirements of ISA 540 (Revised) in the context of the audit of the financial statements of an entity with simple and complex accounting estimates, respectively, are also available.

The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group has prepared illustrative examples for auditing expected credit loss (ECL) accounting estimates. The examples illustrate how an auditor could address certain requirements of ISA 540 (Revised), and have been developed to assist the auditor in understanding how ISA 540 (Revised) may be applied to:

The IAASB invites you to tune into a roundtable discussion addressing fraud in the digital age on September 2 at 7:00 am EDT live streaming on YouTube. The roundtable discussion is part of the IAASB’s new roundtable series to explore issues and challenges related to fraud through discussions with experts and leaders. These discussions will help the IAASB determine an appropriate response to the significant questions raised globally regarding the role of auditors in relation to fraud.

The proliferation of technology presents unprecedented opportunities for fraud—the means, motivation and opportunity are facilitated by the increasing and evolving use of technology. In the rapidly evolving technological landscape, detection becomes harder. As businesses embrace digitization to better serve their customers, there is an emergence of new threats. Technology may be one of the greatest enablers of fraud but also, paradoxically, one of the greatest defenses.

There is a call for auditors to do more in relation to fraud as part of their audit procedures. The IAASB is digging deeper into fraud and technology’s impact thereon, including:

• How technology facilitates the perpetration of fraud;
• How technology is used in financial statement audits to help the auditor in relation to their obligations regarding fraud; and
• How technology is used in forensic audits, and whether there are any aspects of this that may be helpful for the purpose of a financial statement audit.

Moderated by IAASB Deputy Chair Fiona Campbell, this first roundtable session in a series of three will cover:

• New vulnerabilities and fraud risks auditors should consider
• New and emerging technology used to detect fraud
• Current trends in how frauds are perpetrated using technology
• Challenges presented by technology in relation to fraud

Participants in the roundtable discussions include forensic auditors, financial statement auditors, fraud audit methodology experts, third party audit solution companies, regulators, academics, public sector representatives, and others with a strong background in this topic from across the globe.

The full session will be posted online following the event—follow us on Twitter and YouTube or register/subscribe for updates and announcements.

Roundtable Agenda
September 2, 2020, 7:00 am EDT–10:00 am EDT
IAASB YouTube

Save the dates for related upcoming roundtables. 

Today the IAASB released COVID-19 pandemic-related guidance on Review Engagements on Interim Financial Information. This guidance may help auditors in the current uncertain and evolving environment.

Today the IAASB released COVID-19 Pandemic-related guidance for auditors to consider when issuing an auditor's report on the completion of the audit of financial statements.

The guidance document can be found HERE.

In the IAASB’s ongoing response to COVID-19, guidance related to Going Concern and Subsequent Events have also been issued, and more information and helpful links can be found on the IAASB’s COVID-19 Webpage.