00:10 Welcome and introduction: John Stanford, Technical Director 01:02 Chair’s meeting overview: Ian Carruthers, IPSASB Chair 03:02 Revenue with Performance Obligations: Edwin Ng, Principal 04:04 Revenue without Performance Obligations: Joanna Spencer, Manager 04:56 Transfer Expenses: Paul Mason, Senior Advisor 06:06 Leases: João Carlos Fonseca, Principal 06:52 Measurement: Dave Warren, Principal 09:46 Chair’s concluding comments: Ian Carruthers, IPSASB Chair 12:54 Closing remarks: John Stanford, Technical Director
ISA 315 (Revised 2019) is an important part of the IAASB’s efforts to improve audit quality globally. In finalizing the changes, the IAASB focused on the understandability, complexity and length of the standard, and made enhancements and clarifications to encourage a more consistent and robust risk assessment, which forms the foundation of the auditor’s efforts to gather sufficient appropriate audit evidence. The revisions also modernize the standard to keep up with the evolving environment in which businesses operate, in particular in relation to technology, as well as a focus on why procedures are required.
“This revised standard is the second significant standard to be completed in our efforts to enhance audit quality. ISA 315 (Revised 2019) is foundational to the audit – the core of the audit is undertaking work to obtain sufficient appropriate audit evidence to address the risks of material misstatement, and the changes made to ISA 315 (Revised 2019) recognize the importance of a robust and consistent risk assessment in driving an appropriate and effective response to those risks,” says Tom Seidenstein, IAASB Chair.
ISA 315 (Revised 2019) becomes effective for financial statement audits for periods beginning on or after December 15, 2021.
Due to the foundational nature of this revised standard, the IAASB will undertake activities to support effective and consistent application of the changes. An implementation plan has been developed which lays out the planned activities and estimated timing.
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.
ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, has been revised to include a more robust and consistent risk identification and assessment. The revised standard sets out clarified and enhanced requirements, and enhanced application material, to support the auditor’s risk assessment process, intended to support more focused responses to the auditor’s risk assessment in accordance with ISA 330, The Auditor’s Responses to Assessed Risks.
“The extraordinary participation in our consultation and the thoughtful comments we received demonstrate the importance of, and interest in, this initiative, said Tom Seidenstein, Chair of the IAASB. “We are pleased with the high level of engagement we received on this topic globally, and look forward to further engagement as the IAASB progresses its work in this area.”
The Discussion Paper, and related outreach activities, solicited perspectives of different stakeholder groups on the issues and challenges surrounding the audits of LCEs. Further information gathering activities will continue until June 2020, when the Board will decide the way forward.
“We have developed this feedback statement to acknowledge the important and constructive input received to date, but also to keep our stakeholders informed about where we are in this important initiative, said Roger Simnett, LCE Working Group Chair. “The IAASB believes that sharing what we have heard will be useful in stimulating further thinking and exploration of this very important topic towards developing recommendations.”
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 Public Interest Committee, the body that oversees the standard setting activities of the International Public Sector Accounting Standards Board (IPSASB), today launches a public Survey on IPSASB governance arrangements which were implemented in accordance with the 2015 Recommendations of the IPSASB Governance Review Group. All interested stakeholders are encouraged to participate in this global consultation.
Established in 2015, the Public Interest Committee reviews the standard-setting activities of the IPSASB to ensure appropriate due process and that the Board’s activities reflect the public interest. Since its formation, the Committee has actively provided advice and recommendations concerning the development of the IPSASB strategy and work program, the appointment process for members of the IPSASB, and IPSASB standard-setting due process.
Stakeholder feedback through the survey will be an important source of input for the Public Interest Committee in carrying out the review of the current oversight arrangements of the IPSASB.
