IAASB eNews: August 2015
The following publications have recently been released on the IAASB’s website:
- Final changes to the International Standards on Auditing™ (ISA™), Addressing Disclosures in the Audit of Financial Statements–Revised ISAs and Related Conforming Amendments. These changes aim to focus auditors on disclosures throughout the financial statement audit. The changes will be effective for audits of financial statements for periods ending on or after December 15, 2016. As a complement to these revisions, IAASB staff has also developed a publication for auditors that describes financial reporting disclosure trends and their possible implications from an audit perspective and highlights how the International Standards on Auditing as revised guide the auditor in addressing disclosures.
- An Exposure Draft, Proposed Amendments to the IAASB’s International Standards—Responding to Non-Compliance or Suspected Non-Compliance with Laws and Regulations, which focuses on proposed amendments to ISA 250, Consideration of Laws and Regulations in an Audit of Financial Statements (with less extensive changes proposed to seven other standards), in response to the International Ethics Standards Board for Accountants® (IESBA®) May 2015 Exposure Draft, Responding to Non-Compliance with Laws and Regulations. Comments on the IAASB’s Exposure Draft are due by October 21, 2015.
- An Exposure Draft, Proposed International Standard on Auditing (ISA) 810: Engagements to Report on Summary Financial Statements. The proposed amendments are a result of the IAASB’s new and revised Auditor Reporting Standards, which address auditor reporting on general purpose financial statements. The deadline for comments is November 2, 2015.
- A Staff Audit Practice Alert addressing the Responsibilities of the Engagement Partner in Circumstances when the Engagement Partner Is Not Located Where the Majority of the Audit Work is Performed. This publication is an initial response to concerns, including those raised by certain regulators and audit oversight bodies, and serves to remind auditors of the responsibilities of the engagement partner described in the ISAs.
- A publication, Exploring Assurance on Integrated Reporting and Other Emerging Developments in External Reporting, issued by the IAASB’s Integrated Reporting Working Group. The IAASB established the Working Group to guide it in responding to these developments most effectively in the public interest.
The IAASB last met in New York in June 2015. Meeting highlights and a podcast summary of key meeting outcomes can be found on the IAASB’s Meetings page.
At this meeting, the IAASB agreed to issue a combined Discussion Paper addressing key topics in its Work Plan for 2015–2016 relevant to enhancing audit quality, in particular quality control, group audits, special audit considerations relevant to financial institutions, and professional skepticism. The IAASB intends to issue the Discussion Paper in December 2015 with a 150-day comment period, supported by outreach in 2015 and 2016. Feedback from the Discussion Paper will inform the development of standard-setting project proposals, expected to be presented to the IAASB and the IAASB Consultative Advisory Group in September 2016. Discussion on the planned approach and issues relating to the four topics continues to be a prominent feature of the IAASB’s outreach activities.
During its June 2015 meeting, the IAASB also hosted a panel discussion on the topic of professional skepticism. IAASB member Annette Köhler, who chairs the Professional Skepticism Working Group, introduced the topic. The panel was comprised of: Jeremy Justin, Canadian Public Accountability Board; Helen Munter, US Public Company Accounting Oversight Board; Doug Prawitt, Brigham Young University; and Cindy Fornelli, Center for Audit Quality. The Professional Skepticism Working Group is comprised of representatives from the IAASB, the IESBA, and the International Accounting Education Standards BoardTM in acknowledgement that actions by the three independent standard-setting boards may be appropriate to enhance professional skepticism.
The IAASB has continued the extensive outreach program contemplated in its Strategy. It has compiled a detailed listing of its outreach activities. Recent activity of note includes:
- Annual meeting of the IAASB-National Auditing Standard Setters Liaison Group to exchange views on the IAASB’s current initiatives as well as national developments relevant to the IAASB’s work.
- Continued dialogue with the International Forum of Independent Audit Regulators and its Standards Coordination Working Group, and the International Organizations of Securities Commissions on the IAASB’s new projects related to enhancing audit quality.
- Discussions with international supervisors, prudential regulators, and audit leaders in the banking and insurance industries to inform the project relating to special audit considerations relating to financial institutions.
- Participation in various events sponsored by IFAC and its member organizations, including Accounting & Accountability for Regional Economic Growth/Contabilidad y Responsibilidad para el Crecimiento Economico Regional (CReCER), Pan African Federation of Accounting Africa Congress of Accountants, Fédération des Experts Comptables Européens, Institute of Chartered Accountants of the Caribbean, and Institute of Chartered Accountants in India.
- Country-specific outreach to South Africa and the US, including meetings with investors, regulators, accounting firms, public sector organizations, professional accountancy organizations, and other thought leaders.
- Continued engagement with accounting firms, through meetings with the Global Public Policy Committee, Forum of Firms, and Small and Medium Practices Committee, on both strategic and technical matters.
In addition, the IAASB has responded to the US Public Company Accounting Oversight Board (PCAOB) Staff Consultation Paper on “The Auditor’s Use of the Work of Specialists.”
IFAC has revamped its database of translated international standards, handbooks, and other resources. The new version is searchable and filterable, by language, status, source, and publication year.
The IAASB is recruiting at both the Senior Technical Manager and Technical Manager levels for its staff team based in New York. For complete job descriptions and required skills and experience for these roles, see Working at IFAC. Qualified candidates should send their resume to jobs@ifac.org.
The IAASB will meet September 21-25, 2015, in New York, USA. The agenda and meeting materials are posted approximately three to four weeks in advance on the IAASB Meetings page. Members of the public may register to observe the meetings and registration closes one week before the first day of the meeting. The next IAASB CAG meeting is scheduled for September 15-16, 2015, in New York, USA.
IAASB Presentation and Outreach Activities January 2015-August 2015
The IAASB has continued its extensive outreach program contemplated in its five-year Strategy for 2015–2019: Fulfilling Our Public Interest Mandate in an Evolving World. It has compiled a detailed listing of its outreach activities for the period January 2015-August 2015.
IFAC Welcomes Publication of Spanish Translation of the Handbook of the Code of Ethics for Professional Accountants
The International Federation of Accountants® (IFAC®) today published in the Spanish language the Handbook of the Code of Ethics for Professional Accountants, 2014 Edition, developed by the International Ethics Standards Board for Accountants® (IESBA®). The 2014 edition incorporates several revised pronouncements that were published previously and are now effective—addressing a breach of a requirement of the IESBA Code, conflicts of interest, and the definition of “those charged with governance.” It also contains the revised definition of “engagement team.”
“The IESBA Code has now been adopted or is in use in over 100 jurisdictions around the world,” said Ken Siong, IESBA Technical Director. “Spanish is a widely spoken language; indeed, it is an official language in 20 countries, which is why high-quality Spanish translations are critical to supporting the IESBA’s efforts to further the adoption of the Code globally and, importantly, to facilitate its consistent application.”
This Spanish translation was performed by the Instituto de Censores Jurados de Cuentas de España and is a result of the Ibero-American cooperation framework, known as the IberAm project. Established in 2012, the IberAm project—which includes IFAC and its member organizations, in Argentina, Mexico, and Spain—is an IFAC-authorized translation and review process that strives to achieve longer-term, sustainable processes for single, high-quality Spanish translations of international standards and other IFAC publications. The Interamerican Accounting Association, IFAC’s regional organization for Latin America and the Caribbean, is an observer to the project. In addition, the project involves a Review Committee of technical experts representing IFAC members in nine Spanish-speaking countries.
For an overview of publication translations, please visit the IFAC Translations Database.
About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit www.ethicsboard.org for more information.
About IFAC
The International Federation of Accountants (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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.
Other Spanish Publications to Follow