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.

The International Federation of Accountants (IFAC) today released a new resource, The Risk Identification and Assessment Process: Tips on Implementing ISA 315 (Revised 2019). The tool helps auditors implement the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Auditing (ISA) 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, which is effective for audits of financial statements for periods beginning on or after December 15, 2021.

The implementation tool provides an overview of core concepts and explains new and previously existing requirements. It also includes examples and emphasizes the scalability of the standard with a focus on less complex entities. The tool does not replace the need to read ISA 315 (Revised 2019), including its application and other explanatory material.

The resource is based on Chartered Professional Accountants of Canada’s (CPA Canada) Implementation Tool for Auditors and follows the release earlier this year of IFAC’s Auditing Accounting Estimates: ISA 540 (Revised) Implementation Tool. These tools support efforts to improve audit quality globally and, more broadly, international standards’ adoption and implementation. Additional guidance and resources are available on the dedicated Supporting International Standards section of the IFAC Knowledge Gateway.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board (IPSASB) has welcomed the contribution from the ACCA (Association of Chartered Certified Accountants) to support its proposed development of a public sector specific sustainability reporting framework.

“ACCA’s contribution provides welcome support for our initiative to develop urgently-needed public sector specific sustainability reporting standards,” said Ian Carruthers, IPSASB Chair. “Despite strong stakeholder support for our proposals, our expertise in standard setting alone cannot take us over the finishing line. Financial support from the global community is essential if we are to equip governments with the quality standards necessary to report on their critical contributions to addressing the global climate emergency and other sustainability issues.”

Helen Brand, chief executive, ACCA said, “We are pleased to be the initial funders of the IPSASB's critical work to develop international sustainability reporting guidance that is fit for the public sector. The world's sustainability aspirations, including net zero and inclusive growth, will not be met without concerted government action and a robust reporting framework. ACCA believes that the IPSASB has the right international networks and due process to complete this sustainability work program. Alongside the investment, ACCA will be working closely with IFAC, the IPSASB, and our other public sector partners to advance the field of sustainability reporting for the public sector.”

The IPSASB announced last week that it is moving into a research and scoping phase for three potential initial public sector specific sustainability reporting projects and has called upon the global community for its help in securing the resources needed to begin guidance development.

To contribute financial or other support to the IPSASB for the development of global public sector specific sustainability reporting guidance, please email Ross Smith, IPSASB Program and Technical Director (rosssmith@ipsasb.org) or James Gunn, Managing Director, Professional Standards (jamesgunn@profstds.org).

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.

About ACCA

ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We’re a thriving global community of 241,000 members and 542,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values. We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies. Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report. We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities. And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com.

The threats to the world and its citizens from climate change are well publicized. Yet, despite significant government influence over the global economy, there is no internationally recognized public sector reporting framework to guide how they measure and report their critical contributions to addressing the global climate emergency. Reporting on climate change is one of the most important issues in sustainability reporting, which also encompasses environmental, social and governance issues.

At its December meeting, in light of the urgency of this issue, the International Public Sector Accounting Standards Board (IPSASB) decided to commence the scoping of three potential public sector specific sustainability reporting projects pending securing the resources needed to begin guidance development. This decision builds on IPSASB’s 25 years of public sector standard setting experience as well as the strong global stakeholder support for the proposals in its Consultation Paper, Advancing Public Sector Sustainability Reporting.

“Public sector-specific sustainability reporting guidance would encourage transparency, allowing governments to be held accountable for the long-term impacts of their interventions, and enabling better-informed decision-making,” said Ian Carruthers, IPSASB Chair. “The feedback we’ve received from stakeholders around the world is clear: the public sector needs its own specific sustainability reporting framework and the IPSASB should lead its development. But in addition to our existing expertise, it is a fact that we will need additional support, both financial and otherwise, from the global community before we can take on the development of global guidance that would equip the public sector with the tools necessary to report on climate change and other sustainability issues.”

The IPSASB’s immediate action will be to establish a Sustainability Task Force to lead this first critical phase of research and scoping. The Board’s prioritized research topics are:

• General Requirements for Disclosure of Sustainability-related Financial Information,
• Climate-Related Disclosures, and
• Natural Resources – Non-Financial Disclosures (in parallel with the development of financial reporting guidance proposed in its Consultation Paper, Natural Resources).

Resources are needed to support the IPSASB’s program of activity and stakeholder engagement, and to begin guidance development. To contribute financial or other support to the IPSASB for the development of global public sector specific sustainability reporting guidance, please email Ross Smith, IPSASB Program and Technical Director (rosssmith@ipsasb.org) or James Gunn, Managing Director, Professional Standards (jamesgunn@profstds.org).

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 Invitations for Applications for vacancies on the International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) have been issued by the Public Interest Oversight Board’s (PIOB) Standard-Setting Boards Nominations Committee for terms beginning January 1, 2024. The application period is open until February 10, 2023.

The Invitations for Applications are open to all individuals and interested organizations, including those representing investors and the corporate governance community, regulatory bodies, national standard setters, audit practitioners, professional accountancy organizations and public sector organizations, and those in academia. Individuals may also make nominations on their own behalf.

These vacancies are exciting opportunities for experienced individuals from diverse backgrounds to contribute to the evolving multi-stakeholder and multi-cultural composition of each board. Importantly, there is a tremendous opportunity to contribute to safeguarding the proper functioning of financial markets and economies worldwide. Successful candidates take part in the IAASB´s efforts to gain further global acceptance of its standards to have high-quality audit and assurance as a foundational element of trustworthy financial and sustainability information.

For additional information on IAASB or IESBA nominations, please see the PIOB’s nominations web page or email SSBNominations@ipiob.org.

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.

To guide professional accountancy organizations (PAOs) in how they can act today to prepare their current and future members to seize opportunities presented by emerging trends, IFAC has published a new report with insights from its Professional Accountancy Organization Development and Advisory Group. These insights address four emerging trends—sustainability-related reporting, anti-corruption efforts, sound public financial management, and technological change—that will help PAOs ensure their own and their members’ resilience, relevance and adaptability today and into the future.

The PAO Development and Advisory Group encourages PAOs to consider how their educational programming can respond to these trends, and engage accordingly with their education stakeholders. Actioning some or all of the insights in the new report will help PAOs improve their value proposition and the attractiveness of the profession, while helping address issues that are fundamental to the public interest.