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.

To account for COVID-19’s impact on the International Auditing and Assurance Standards Board’s (IAASB) work, its staff capacity to deliver, and the capacity of the IAASB’s stakeholders to participate in consultations and to implement new standards, the IAASB has reconsidered the timelines for its projects in 2020. The Revised Detailed Work Plan Table for 2020-2021 sets out a description of the changes that have been made and the revised timelines for 2020 and 2021 (as applicable).

“Like many others, we revised our Work Plan to respond to realities imposed by the COVID-19 pandemic,” noted Tom Seidenstein, Chair of the IAASB. “Our approach directs capacity to emerging  public interest needs and accounts for the capacity of our stakeholders, volunteer Board Members, and staff. We will also continue to monitor whether further changes are needed."

The Technology Working Group (TWG) of the International Auditing and Assurance Standards Board (IAASB) today released non-authoritative support material related to the auditor’s documentation when using automated tools and techniques (ATT), such as data analytics, robotics automation processes or artificial intelligence applications. 

The publication intends to assist auditors in understanding how the use of ATT during an audit engagement may affect the auditor’s documentation in accordance with International Standard on Auditing (ISA) 230, Audit Documentation, and the documentation requirements of other relevant ISAs.

The publication does not constitute an authoritative pronouncement of the IAASB, nor does it amend, extend or override International Standard on Quality Control (ISQC) 1 or the ISAs, the texts of which alone are authoritative. Reading the publication is not a substitute for reading ISQC 1 or the ISAs.

Click here to learn more.

Today, the International Auditing and Assurance Standards Board (IAASB) published its Strategy for 2020‒2023 (the Strategy) and Work Plan for 2020‒2021 (the Work Plan).

The strategy, developed through extensive external consultation over two years, looks to build sustained trust in financial and other reporting through high-quality audits, assurance, and related services engagements. The IAASB also recognizes the need to address the impact of technology, demands relating to changing reporting needs (including demands in relation to non-financial reporting), and changing expectations for the audit.

“The IAASB recognizes the significant challenges facing the audit profession and the standards that govern it. This Strategy and Work Plan provides an important compass for our organization to address these challenges in a highly responsive and innovative manner,” said Tom Seidenstein, Chair of the IAASB. “We will inevitably need to adapt over the strategy’s four-year period, but the emphasis on the public interest, innovation and agility, and collaboration should remain relevant.”

Consistent with governance requirements, the Public Interest Oversight Board (PIOB), the IAASB’s independent oversight body, concluded at its March 2020 meeting that the IAASB developed its Strategy and Work Plan in accordance with due process and with proper regard for the public interest.

Key IAASB Strategy and Work Plan Elements

The strategy sets three strategic objectives to focus IAASB priorities and resources during 2020‒2023:

1. Increase the emphasis on emerging issues to ensure that the IAASB International Standards provide a foundation for high-quality audit, assurance and related services engagements
2. Innovate the IAASB’s ways of working to strengthen and broaden our agility, capabilities, and capacity to do the right work at the right time
3. Maintain and deepen relationships with stakeholders to achieve globally relevant, progressive and operable standards

The Work Plan describes, at the time of the December 2019 approval, how the IAASB intends to increase its focus on emerging issues, while completing the existing work already committed to and underway. In the Work Plan, the IAASB anticipates standard-setting projects on going concern, fraud, and audit evidence, and work to address the needs of auditors of Less Complex Entities, among other topics. To support an evidence-based and structured consideration of new topics, the IAASB Work Plan highlights a new Framework for Activities, comprising several key components, to help the IAASB develop informed and targeted responses to address emerging issues and topics of global relevance.

Impact of the COVID-19 Pandemic on the Strategy and Work Plan

While the IAASB approved its strategy before the pandemic, the three strategic objectives remain relevant. The IAASB has used these strategic objectives to help prioritize its crisis response. For example, the IAASB has developed, and is continuing to develop, guidance on audit considerations in response to the pandemic. The IAASB is enhancing its interactions with national audit standard-setters, regulators, and independent audit oversight regimes.

At the same time, the IAASB recognizes that its Work Plan and timelines may need to adapt as new priorities emerge, the pandemic and associated restrictions impact our ability to work, and stakeholder capacity for change becomes constrained. In the coming weeks and months, the IAASB will consider potential impacts and consult, as appropriate, with the PIOB, the IAASB Consultative Advisory Group, and other stakeholders.

The outcome of IAASB consultations could lead to the reprioritization of topics and changes in the timing of projects and consultation efforts. The IAASB will post any changes on its Website.