The work of the Auditor Reporting Implementation Working Group (ARIWG) was to promote awareness, understanding and support effective implementation of the new and revised auditor reporting standardsthrough the issueance of the below guidance material. The ARIWG also undertook a post-implementation review (PIR) of the new and revised auditor reporting standards in order to:
The reliability and quality of financial reporting and supporting investors’ and regulators’ trust in the information hinge on the effectiveness of the external reporting supply chain.
On behalf of the IAASB, we are pleased to share our public report, Foundation for the Future, summarizing the Board’s achievements from January 1, 2016 to June 30, 2019.
This period, chaired by Professor Arnold Schilder, was one of great productivity for our Board and staff. Five new and revised standards were approved. Six exposure drafts were issued and we consulted with stakeholders on five key areas. The IAASB also published nine project proposals, project updates and feedback statements. To help our stakeholders better understand and implement our standards, the IAASB developed 31 implementation and support resources.
In line with the 2015-2019 strategy, the IAASB’s activities have focused on enhancing audit quality and addressing engagements other than audits of financial statements. The IAASB has also increasingly focused on what more can be done to better understand and address the challenges some users face in applying the International Standards on Auditing in audits of less complex entities.
In addition, the IAASB has remained true to our commitment to a rigorous program of international outreach (IAASB members and staff engaging with stakeholders by way of personal visits and meetings, participation in conferences, discussion groups and forums, as well as webinars and other methods of communication to inform and engage on technical topics). From 2016 to 2019, almost 400 outreach activities across 44 countries were conducted with key stakeholder groups. By working with our stakeholders and strengthening our relationships, we are better able to understand issues affecting our standards and promote their adoption and implementation.
As we enter a new phase for the IAASB, we are proud of the broad reach of our standards and recognize the significant responsibilities that come with this. During the period covered by this report, the number of jurisdictions worldwide that use or are committed to using the International Standards on Auditing increased from 111 to 130.
We are now completing the development of a new strategy and work plan in the knowledge that there is a strong foundation in place. At the same time, we accept the need to identify and respond to emerging challenges to ensure that we continue to deliver international standards that are relevant, robust and operable.
Yours sincerely,
Tom Seidenstein Willie Botha Chair (Effective July 2019) Technical Director
The IAASB’s Audit Evidence and Risk Response project aims to concurrently address revisions to the following ISAs to holistically address the ‘reference framework’ and the ‘performance’ aspects of obtaining and evaluating audit evidence:
The objective of the project is to develop a separate standard for audits of financial statements of Less Complex Entities (LCEs) to address issues and challenges related to complexity, understandability, scalability and proportionality for LCEs.
Extended External Reporting (EER) Assurance is used to describe engagements to provide assurance on different forms of non-financial reporting, including integrated reporting, sustainability reporting and non-financial reporting about environmental, social and governance matters. This video provides an overview of EER Assurance.
Propose revisions to ISA 220 to strengthen aspects of quality management for individual engagements by focusing on the identification, assessment and response to quality risks in a broad range of engagement circumstances.
Propose consequential amendments to other standards that may be necessary as a result of revisions to ISA 220.
Determine whether non-authoritative guidance and support tools should be developed by the IAASB or others to supplement the revisions or new standard(s).
The objective of this project were to enhance the requirements and application material in relation to the firm’s engagement quality reviews (EQRs), including:
