On June 12, 2023, the Consultative Advisory Group (CAG) of the International Public Sector Accounting Standards Board (IPSASB) elected Ms. Fabienne Colignon as its chair to lead its advisory efforts for the next three years. The CAG advises the IPSASB on technical projects and issues, as well as on its Strategy, adoption of standards, and other pressing issues.

Ms. Colignon is a long-serving, active and experienced member of the CAG and a regular observer of the IPSASB since her appointment in 2016. Ms. Colignon has extensive expertise in public sector accounting and reporting through her role with the French Public Sector Accounting Standard-Setter, Conseil de Normalisation des Comptes Publics (the CNoCP), a council body within the Ministry of Finance, and her prior experience as a Practice Fellow with the IFRS Interpretations Committee.

Ms. Colignon now takes the helm of the IPSASB CAG, which is composed of 22 representatives of public sector organizations and individuals that are interested in, or affected by, the IPSASB’s work, including those engaged in the preparation, audit, or evaluation of public sector financial reports. Ms. Colignon will succeed Mr. Thomas Müller-Marqués Berger who has led the IPSASB CAG since its inception in 2016.

“I am very appreciative of the trust CAG members have placed in me,” said Ms. Colignon. “I am honored to lead this exceptional group of public sector experts as it continues to serve as the IPSASB’s strategic advisor, helping to set priorities and to advance the public interest, especially during this uniquely challenging time.”  

“On behalf of the IPSASB, it is my great pleasure to welcome Fabienne as CAG Chair,” said IPSASB Chair Ian Carruthers. “Fabienne takes on her new role at a critical time as we enter a new phase of our financial reporting work, at the same time as beginning to advance public sector sustainability reporting. I’m confident her background and experience will ensure the perspectives of CAG members continue to enrich the IPSASB’s work in developing high-quality public sector reporting standards. I would also like to take this opportunity on behalf of IPSASB to thank Thomas Muller-Marques Berger for his outstanding leadership over the last 7 years as the inaugural CAG Chair. Under his strong leadership the CAG has matured in its role and made an increasingly significant contribution to the important projects that IPSASB has successfully taken forward during this period. I look forward to working with Fabienne to help her build on the strong foundations Thomas has laid.”

About the IPSASB

The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB 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 governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

The Staff of the International Ethics Standards Board for Accountants (IESBA) today released a database of Public Interest Entity (PIE) definitions by jurisdiction (jurisdictional PIE database) to further support the adoption and effective implementation of the revisions to the definitions of listed entity and PIE (PIE revisions) in the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code). The revised PIE provisions specify a broader list of categories of entities as PIEs whose audits should be subject to additional independence requirements to meet stakeholders’ heightened expectations concerning auditor independence when an entity is a PIE.

The IESBA Staff has developed the jurisdictional PIE database as a resource to assist regulators, national standard setters, and other relevant bodies in developing or revising their definitions of PIE at the local level based on the IESBA’s PIE definition. This database covers 78 jurisdictions in the Americas, Europe, Africa, Asia, and Oceania.

Among other things, the PIE revisions:

• Expanded the list of PIE categories in the Code, including a new category, “publicly traded entity,” to replace the category “listed entity.”
• Recognize the essential role local bodies responsible for the adoption of the Code play in delineating the specific entities that should be scoped in as PIEs in their jurisdictions, encouraging them to properly define the PIE categories in the expanded definition and adding any other categories relevant to their environments.
• Introduce a transparency requirement for firms to publicly disclose the application of independence requirements for PIEs where they have done so.

The PIE revisions become effective for audits of financial statements for periods beginning on or after December 15, 2024. Early adoption is permitted and encouraged.

About the IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information. Along with the International Auditing and Assurance Standards Board, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

Today, the International Auditing and Assurance Standards Board (IAASB) opened the public consultation for a group audit-specific section of the proposed auditing standard for less complex entities (LCEs). The proposed section, Part 10, Audits of Group Financial Statements, is intended to form part of the proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) when finalized. The exposure draft is open for public comment until May 2, 2023.

Group audits were not included in the scope of the original Exposure Draft of the ISA for LCE. Given stakeholder feedback, the IAASB reconsidered its decision to exclude group audits and developed proposals that address audits of less complex groups.

With the inclusion of group audits, the IAASB has proposed changes to the Authority of the proposed ISA for LCE. For example, the IAASB removed the prohibition on using the standard when the audit is a group audit unless component auditors are involved, other than in limited circumstances in which a physical presence is needed for a specific audit procedure for the group audit (e.g., for attending a physical inventory count or inspecting physical assets).

The IAASB invites all stakeholder to comment on the exposure draft via the IAASB website. Comments are requested by May 2, 2023.

About the IAASB
The International Auditing and Assurance Standards Board 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. For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

The International Ethics Standards Board for Accountants (IESBA) will hold a series of four global roundtables to obtain stakeholder input to help shape the development of new ethics and independence standards for sustainability reporting and assurance.

Demand for timely, relevant, and trustworthy sustainability information has risen dramatically in recent years as such information is increasingly being used to support capital allocation or other decisions by investors, customers, workers, government agencies, and other stakeholders. In response to such demand,  the IESBA announced in June 2022 its commitment to take timely action to develop fit-for-purpose, globally applicable ethics and independence standards as a critical part of the infrastructure needed to support transparent, relevant, and trustworthy sustainability reporting and assurance. Importantly, this strategic commitment sets up the IESBA’s ethics and independence standards as the third pillar to trustworthy sustainability reporting and assurance, alongside the standards being developed by the International Sustainability Standards Board (ISSB) and the International Auditing and Assurance Standards Board (IAASB).  

In December 2022, the IESBA approved two new standard-setting projects that will develop profession-agnostic ethics and independence standards for sustainability reporting and assurance and on the related topic of “use of experts.”

The quality of the standards to be developed and their ability to meet the needs of the users and any providers of sustainability information will critically depend on timely contributions and input from stakeholders globally. The roundtables being organized aim at providing stakeholders the opportunity to convey relevant information to be addressed in developing the standards.

Save the dates! The roundtables will be held in person at the following times and locations:

• Friday, March 24  -  Paris, France               
• Thursday, March 30  -  Sydney, Australia                     
• Monday, April 3  -  Singapore        
• Thursday, April 6  -  New York, USA

The agenda for the roundtables will be available in due course. Videoconferencing facilities will be made available for participants who are not able to attend in person, where available.

Would you like to attend?

As space is limited, attendance will be by invitation only. Register your interest at IESBA@ethicsboard.org  by February 1, 2023, indicating your name, job title, organization, location, and session. An invitation will follow shortly to the selected interested stakeholders!

Who should attend?

Members of the investor and corporate governance communities, data aggregators, rating agencies, and other users of sustainability information; C-suite executives including those leading corporate sustainability initiatives; regulators and oversight bodies; international policy-making organizations; national standard setters; preparers; professional accountancy organizations; and sustainability assurance providers, including accountancy firms and independent providers outside the accountancy profession.

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

The International Public Sector Accounting Standards Board (IPSASB) has released Exposure Draft (ED) 84, Concessionary Leases and Right-of-Use Assets In-kind (Amendments to IPSAS 43 and IPSAS 23) for comment.

ED 84 is part of phase two of the IPSASB’s Leases project. It proposes amendments to IPSAS 43, Leases on accounting for concessionary leases, as well as new guidance on right-of-use assets in-kind and consequential amendments to IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers).

Feedback received to the IPSASB’s Request for Information (RFI), Concessionary Leases and Other Arrangements Similar to Leases helped shape ED 84 and is summarized in a Feedback Statement published alongside the new ED.

“In light of the responses to the RFI, the IPSASB decided to propose new guidance on concessionary leases and right-of-use assets in-kind,” said IPSASB Chair Ian Carruthers. “The proposals in ED 84 will provide new guidance that will enhance transparency, accountability, and decision-making in the public sector.”

Access ED 84 and related documents including the Feedback Statement, At-a-Glance, and webcast at the IPSASB’s website.

How to Comment
To access the Exposure Draft, its summary At-a-Glance document, and the Feedback Statement or to submit a comment, visit the IPSASB website. Comments are requested by May 16, 2023. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Consultation Paper to their members and employees.
 
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
 
About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

The International Auditing and Assurance Standards Board (IAASB) today issued a public consultation for its 2024-2027 proposed strategy and work plan. The strategy seeks to accelerate the actions originally laid out in the 2020-2023 strategy with a focus on standard setting that supports the performance of high-quality audit and assurance engagements.

“Audit and assurance play vital roles in the world’s economies. At their best, audit and assurance practitioners enhance trust in markets and assist in efficient, sustainable resource allocation,” noted IAASB Chair Tom Seidenstein. “Our proposed new strategy strives to develop the globally accepted standards for audit, assurance and related services that enable high-quality engagements, with a distinct focus on both the core need for audits of financial statements and the growing demand for sustainability assurance engagements.”

The proposed strategy outlines four strategic objectives:

• Support the consistent performance of quality audit engagements by enhancing our auditing standards in areas where there is the greatest public interest need;
• Establish globally accepted standard(s) for assurance on sustainability reporting;
• Strengthen coordination with the International Ethics Standards Board for Accountants and other leading standard setters and regulators to leverage better collective actions in the public interest; and
• Create more agile, innovative ways of working in line with the Monitoring Group’s reform vision.

The IAASB’s 2024-2027 work plan describes the technical standard-setting work required to support the strategy. The work plan focuses on where further standards’ development can best contribute to meeting the needs of stakeholders in the external reporting ecosystem, while balancing timeliness with quality.

The IAASB invites all stakeholders to comment on the proposed strategy and work plan via the IAASB website by April 11, 2023. Stakeholders can respond to all questions in the Consultation Paper or focus on those questions that are most relevant to them and where they have specific comments.

About the IAASB
The International Auditing and Assurance Standards Board 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 standards and guidance. For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

On January 1, 2023, the International Ethics Standards Board for Accountants (IESBA) welcomed two new members following their appointments by the Public Interest Oversight Board (PIOB) in November 2022.

Paul Muthaura (Kenya) is an independent consultant supporting the development of capital markets in emerging African jurisdictions. He is the Africa Chair for the Impact Infrastructure Commission; an Independent Member of the Financial Sector Deepening Trust, Kenya; and a Member of the Securities Advisory Board of the Toronto Centre for Global Leadership in Financial Supervision. A Lawyer and capital markets expert, his work experience includes risk management, standard setting, climate change, and sustainability.  He is a former board member and Africa Middle East Regional Chair of the International Organization of Securities Commissions (IOSCO) and has led in a financial services group with operations across East Africa. 

“It is an honor to be joining the IESBA at this important time,” said Mr. Muthaura. “I look forward to supporting the work to inject greater responsiveness, innovation, and impact in the IESBA Code and the broader reporting environment noting the global transition process.”  

Rania Uwaydah Mardini(Lebanon) is a Senior Lecturer at the Olayan School of Business at the American University of Beirut (AUB) and an advisor to the United Nations Development Programme (UNDP's) Regional Bureau for Arab States. Prior to this appointment, she was a Member of the International Panel on Accountancy Education (IPAE) that advises the International Federation of Accountants (IFAC) and has served as [Board] Member of the International Accounting Education Standards Board (IAESB), the IPAE’s predecessor and Chair of its Public Sector Accounting, Reporting, and Assurance Task Force. She has also served as Vice Chairwoman of the Lebanese chapter of Transparency International (TI) and as a consultant to the UNDP’s Anti-Corruption and Integrity in the Arab Countries (ACIAC) program. She started her career in assurance at Ernst & Young (EY), Beirut office. 

“We live in an increasingly complex environment where issues such as sustainability reporting and disruptive technologies present a wide range of unforeseen ethical dilemmas for accountants,” said Ms. Uwaydah Mardini. “Today,the IESBA’s role in providing the strong ethical guidance that drives accountants’ mindsets and judgements is ever so critical, and, as such, I look forward to the challenges and the learnings that this new position will bring!”

In addition to welcoming Mr. Muthaura and Ms.Uwaydah Mardini, the IESBA alsowelcomesthe appointment of Laurie Endsley as the Board’s new Vice Chair.  Laurie C. Endsley joined as a Member of IESBA in January 2020, after being nominated by PwC. Ms. Endsley is a partner with PwC and has worked for more than 30 years as an auditor and attorney.  

Ms. Endsley and current Board member Rich Huesken were both reappointed to the Boardby the PIOB, from January 1, 2023,for two-year terms.  

“On behalf of the IESBA I am happy to welcome our new membersand Icongratulate Laurieand Rich on their reappointments,” said IESBA Chair Gabriela Figueiredo Dias. “Paul and Rania come to our Board at a critical time, and I look forward to their diverse and unique insights. Their experiences and perspectiveswilladd to the IESBA’s knowledge baseand help guide our strategic thinking. I also look forward to partnering with Laurie, as Vice Chair, to help lead the IESBA as we tackle an aggressive schedule.”  

The PIOB’s Invitation for Applicationfor IESBA members for terms of service beginning in January 2024 is currently open. The IESBA encourages qualified candidates to apply. 

The International Auditing and Assurance Standards Board (IAASB) is pleased to welcome two new members to the IAASB following their appointments by the Public Interest Oversight Board (PIOB) in November 2022.

• Neil Morris (based in the UK) is the global head of assurance and ESG methodology at KPMG with more than two decades of experience in South Africa and the UK. A Chartered Accountant, his work experience includes risk management, climate change and sustainability, financial audit, and assurance.

“I’m looking forward to the challenge that this role will bring and working with my fellow members to deliver on the IAASB’s objectives, especially on the sustainability assurance standard,” Mr. Morris noted on joining the IAASB.

• Greg Schollum (based in New Zealand) is the Deputy Controller and Auditor-General of New Zealand, a position he has held since 2015 after first joining the Office of the Auditor-General in 2004. His career includes serving as a member of the International Public Sector Accounting Standards Board, the New Zealand Accounting Standards Board, and the Financial Reporting Standards Board of the New Zealand Institute of Chartered Accountants (now Chartered Accountants Australia & New Zealand).

“I’m looking forward to getting back involved in international standard setting and I hope that I can make a positive contribution in the public interest to the important work of the IAASB,” Mr. Schollum said following his appointment.

In addition to welcoming Mr. Morris and Mr. Schollum, the IAASB also welcomes the appointment of Josephine Jackson as Vice-Chair. Ms. Jackson is Director of International Audit and Assurance Standards Policy at the UK Financial Reporting Council and leads the FRC’s ESG Group. She is entering her second term as member of the IAASB and previously served as a board member Technical Advisor.

“I am delighted to welcome our new IAASB members and congratulate Josephine on behalf of the IAASB,” said IAASB Chair Tom Seidenstein. “Greg and Neil bring new experience and perspectives to the IAASB, and we look forward to including their thinking in deliberations at our next IAASB meeting in March. I also look forward to partnering with Josephine to help guide the IAASB through its important work in the public interest.”

The IAASB is also pleased to share that three members were re-appointed by the PIOB for terms that began on January 1, 2023:

• Sue Almond, a consultant with Grant Thornton International based in the UK with experience in global audit and assurance policies;
• Julie Corden, a partner with Deloitte Canada who is responsible for leading audit methodology, policies and guidance, including the firm's ISQM 1 implementation; and
• Josephine Jackson, the newly appointed Vice-Chair.

The PIOB’s Invitation for Application for IAASB members for terms of service beginning in January 2024 is currently open. The IAASB encourages qualified candidates to apply.

About the IAASB
The International Auditing and Assurance Standards Board 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 IAASB has released a new edition of the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, which includes:

• International Standard on Auditing (ISA) 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, replacing ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment. The handbook also incorporates in other relevant standards conforming and consequential amendments from ISA 315 (Revised 2019). ISA 315 (Revised 2019) is effective for audits of financial statements for periods beginning on or after December 15, 2021.
• The following standards, which are not yet effective for this version of the handbook, have been included in the back of Volumes 1, 2 and 3, as appropriate:
  • International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements
  • ISQM 2, Engagement Quality Reviews
  • ISA 220 (Revised), Quality Management for an Audit of Financial Statements
  • Conforming and Consequential Amendments to Other ISAs Arising from the Quality Management Projects
  • ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)
  • Conforming and Consequential Amendments to Other International Standards Arising from ISA 600 (Revised)
  • Conforming and Consequential Amendments to the IAASB’s Other Standards as a Result of the New and Revised Quality Management Standards
  • ISRS 4400 (Revised), Agreed-Upon Procedures Engagements

The handbooks can be downloaded from the IAASB website, where users can also order print copies of the three-volume handbook. It will also be available in the e-International Standards (eIS) online platform in 2023.

Reproducing and Translating the IAASB Handbook

To help adoption and implementation of the IAASB standards, stakeholders are invited to submit requests for permission to reproduce or translate the IAASB handbook online via the Online Permissions Requests or Inquiries system on the IFAC website.

The International Auditing and Assurance Standards Board (IAASB) has published a new fact sheet on the interactions between International Standard on Audit (ISA) 220 (Revised), which addresses quality management at the engagement level, and ISA 600 on group audits. The fact sheet highlights aspects of a group audit that may be affected by ISA 220 (Revised) and International Standard on Quality Management 1 addressing quality management at the firm level. This includes the revised definition of engagement team and leadership and direction, supervision, and review responsibilities.

The factsheet will be particularly useful for group audits in which component auditors are involved.