The International Auditing and Assurance Standards Board (IAASB) today released conforming amendments to the IAASB’s International Standards as a result of the recently restructured and revised International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code).

The conforming amendments aim to align the IAASB’s International Standards with the revisions to the IESBA Code, thus ensuring that they can continue to be applied together with the IESBA Code. 

“The IAASB and IESBA have prioritized their cooperation and coordination because many jurisdictions use both the IAASB’s International Standards and the IESBA Code. The completion and publication of these conforming amendments fulfills the public interest to ensure that the two sets of standards work in concert,” said Tom Seidenstein, Chair of the IAASB. “These conforming amendments will give jurisdictions yet another reason to adopt and implement both tools to strengthen public confidence in the global auditing and assurance profession.”

The conforming amendments fall under the umbrella of IAASB-IESBA coordination, a strategic commitment of the two Boards to better align for enhanced connectivity and to better serve the public interest.

“I commend the IAASB for completing this necessary project in a timely manner,” said Dr. Stavros Thomadakis, Chairperson of IESBA, adding “Our two boards are committed to seeking alignment in our standards and coordination of our standard-setting activities on issues of common concern to help serve the public interest.” 

The conforming amendments to the IAASB’s International Standards become effective as of July 15, 2020.

For more information click here.

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 Conforming Amendments to the IAASB’s International Standards as a Result of the Revised IESBA Code, propose limited amendments to the IAASB’s International Standards in response to the revised International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code). The Conforming Amendments are intended to ensure that the IAASB International Standards can continue to be applied together with the IESBA Code.

On a recent outreach trip to Australia and New Zealand, IAASB Chair, Tom Seidenstein and IAASB Deputy Chair, Fiona Campbell sat down with Amir Ghandar from CA ANZ to discuss the future of standard setting, embracing agile-standard setting and the board’s focus on keeping trust in its audit product. This is the first in a series of four interview videos conducted by CA ANZ.

The International Auditing and Assurance Standards Board (IAASB) today released International Standard on Related Services (ISRS) 4400 (Revised), its revised standard for performing agreed-upon procedures engagements.

In an agreed-upon procedures engagement, the practitioner performs the procedures that have been agreed upon by the practitioner and the engaging party, and the practitioner communicates those procedures and the related findings in the agreed-upon procedures report. A wide range of stakeholders use agreed-upon procedures reports for a variety of reasons; for example, regulators, funding bodies, creditors and others ask for agreed-upon procedures reports to support or complement information, such as audited financial statements or loan or grant applications.

“Agreed-upon procedures engagements are widely used in many jurisdictions and the demand for such engagements continues to grow, particularly in relation to the need for increased accountability around funding and grants,” said Tom Seidenstein, IAASB chair. “This revised standard is responsive to such trends, relating to both financial and non-financial subject matters, and the enhancements in the requirements and application material will promote consistency in the interpretation and performance of agreed-upon procedures engagements by practitioners.”

In addition to having been redrafted using the clarity drafting conventions to be consistent with other IAASB International Standards, some of the significant enhancements to ISRS 4400 (Revised), Agreed-Upon Procedures Engagements, include:

• Responding to the needs of stakeholders – Broadening the scope of the standard to meet demand for agreed-upon procedures engagements and introducing requirements and application material to address evolving engagement circumstances, such as the use of a practitioner’s expert in an agreed-upon procedures engagement.
• Providing transparency in the AUP report – Introducing requirements and application material to clarify whether or not the practitioner is required to comply with independence requirements and, if so, the determination and disclosure of the relevant independence requirements.
• Enhancing consistency in the performance of AUP engagements – Clarifying how professional judgment is exercised in an agreed-upon procedures engagement and introducing requirements and application material on engagement acceptance and continuance conditions and documentation.

ISRS 4400 (Revised) will be effective for AUP engagements for which the terms of engagement are agreed on or after January 1, 2022.

The IAASB also released an ISRS 4400 (Revised) Fact Sheet to provide implementation support in relation to the more significant changes to the standard and to help practitioners navigate and apply the revised standard. Please visit the IAASB website.  

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.

ISRS 4400 (Revised), Agreed-Upon Procedures Engagements, has been revised to respond to the growing demand for these engagements, particularly in relation to the need for increased accountability around funding and grants. A broad range of stakeholders, such as regulators, funding bodies and creditors, use agreed-upon procedures reports for a variety of reasons.

The COVID-19 pandemic is a global health and humanitarian crisis. Beyond the significant challenges that lay ahead in all facets of life, the pandemic has the potential to significantly impact the way that audits are undertaken.

The IAASB has created a COVID-19 web page to help our stakeholders, and the larger accounting community, navigate some of the challenges ahead.

Click HERE to learn more.