In This Issue:

1. IAASB Meetings
2. Open for Comment - Questionnaire on the IAASB's 2012-2014 Strategy and Work Program
3. Open for Comment - Exposure Draft of ISAE 3420, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus
4. Of Interest to Small and Medium Practitioners (SMPs) - IAASB Progresses Revisions of Review and Compilation Standards
5. Recently Issued Publications
6. Share IAASB eNews with Your Colleagues

1. IAASB Meetings

The most recent IAASB meeting was held on March 15-19, 2010 in New York.

In addition to the projects discussed in this eNews, the IAASB deliberated issues relating to the following projects:

• Revision of International Standard on Auditing (ISA) 610, Using the Work of Internal Auditors
• Revision of ISA 720, The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements
• Revision of International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information
• Revision of International Auditing Practice Statement (IAPS) 1012, Auditing Complex Financial Instruments
• Development of ISAE 3410, Assurance on a Greenhouse Gas Statement

The IAASB will meet via teleconference on May 11, 2010 and in Mainz, Germany on June 14-18, 2010. As a reminder, all meeting agenda materials are publicly available posted on the IAASB's website in advance of the meetings and audit recordings are posted after the meetings. 

2. Open for Comment - Questionnaire on the IAASB's 2012-2014 Strategy and Work Program

The IAASB has launched an online questionaire to inform the development of its strategic direction and related work program for 2012-2014.

The questionnaire serves as the first stage of the IAASB's 18-month consultation process. Through the survey, the board seeks feedback on the challenges facing the accountancy profession; the IAASB's current strategic focus on the development, adoption, and implementation of standards; the needs of small-and medium-sized practices (SMPs) and small-and medium-sized entities (SMEs); and current and future projects, among other topics.

The results of the questionnaire will be used to develop a formal Consultation Paper on the IAASB's future strategy and work program, to be issued in December 2010.

Responses to the online questionnaire are requested by May 14, 2010.

3. Open for Comment - Exposure Draft of ISAE 3420, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus

At its March 2010 meeting, the IAASB approved for exposure proposed ISAE 3420, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus. The proposed standard deals with the practitioner's responsibilities to report on the process of compiling pro forma financial information for inclusion in an issuer's prospectus.

The proposed standard responds to calls from stakeholders for common standards of reporting in relation to issuers' financial information included in prospectuses. This is particularly relevant in light of the growing number of cross-border securities offerings and the globalization of capital markets. The proposed new standard is aimed at promoting the development and convergence of market practice around the world by establishing clear, globally accepted benchmarks for the performance of such engagements.

Comments should be submitted using the online comment system by September 30, 2010.

4. Of Interest to Small and Medium Practitioners (SMPs) - IAASB Progresses Revisions of Review and Compilation Standards

The IAASB continues to make progress in developing international engagement standards for financial statement services other than audits.

Placing high priority on further addressing the needs of SMEs, as a first step the IAASB has focused its efforts on revising two existing standards:

• International Standard on Related Services (ISRS) 4410, Engagements to Compile Financial Statements; and
• International Standard on Review Engagements (ISRE) 2400, Engagements to Review Financial Statements.

This strategic focus recognizes that the IAASB plays a leading role in exploring standards for a range of services other than the financial statement audit that may be appropriate for SMEs. While such entities may seek to have audits on a voluntary basis, and the users of their financial statements (such as lending institutions) may request that audits be performed, the implication is clear-there is a market demand for services that meet the unique needs of SMEs and the users of their financial information.

The IAASB discussed the project at its March meeting and will further deliberate the issues at its June and September 2010 meetings. While significant deliberations still remain over the next several months, the IAASB is on schedule to issue proposed standards for public comment by the last quarter of 2010.

A Staff Update, which provides more details on the project, can be accessed at www.ifac.org/IAASB/ProjectHistory.php?ProjID=0096.

5. Recently Issued Publications

The IAASB has released its 2009 annual report, which highlights the completion of the landmark Clarity Project to redraft the ISAs, the development of adoption and implementation resources for the ISAs, and the launch of innovative new projects to address emerging issues.

Public input is essential to ensuring that the IAASB has insights on the different perspectives of international regulators and organizations, national auditing standard setters, practitioners, academia, and other stakeholders. The report outlines all of the outreach activities that the IAASB participated in during 2009. These activities demonstrate the board's commitment to actively engaging with its stakeholders.

IFAC has also recently released the 2010 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements and the 2010 Handbook of the Code of Ethics for Professional Accountants.

The handbooks can be downloaded free of charge in PDF format or purchased in print from IFAC's Publications and Resources site: web.ifac.org/publications.

6. Share IAASB eNews with Your Colleagues

The IAASB issues regular eNews updates to keep you current on its activities and recent publications. Please forward this eNews to any interested colleagues and let them know that they can subscribe to this and other eNews bulletins on the IAASB website.


For more information about any of the items mentioned above or other information about IFAC, please contact communications@ifac.org.

About the IAASB
The IAASB (www.iaasb.org) 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 IFAC.

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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

In This Issue:

1. IAASB Meetings
2. Arnold Schilder Reappointed To Chair IAASB From 2012-2014
3. Open for Comment - Exposure Draft of ISA 610, Using the Work of Internal Auditors, and ISA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, and Proposed Impact Analysis Approach
4. Open for Comment - Exposure Draft of ISAE 3420, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus
5. Existing and Forthcoming ISA Modules
6. Share IAASB eNews with Your Colleagues
7. Register for the 18th World Congress of Accountants in Kuala Lumpur, Malaysia on November 8-11, 2010

1. IAASB Meetings

The most recent IAASB meetings were held on June 14-18, 2010 in Mainz, Germany and on July 29, 2010 via teleconference.

In addition to the projects discussed in this eNews, the IAASB deliberated issues relating to the following projects:

• Revision of International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information
• Development of ISAE 3410, Assurance on a Greenhouse Gas Statement
• Authority of International Auditing Practice Statements (IAPSs), and development of revised IAPS 1012, Auditing Complex Financial Instruments
• Revision of International Standard on Review Engagements (ISRE) 2400, Engagements to Review Financial Statements
• Revision of International Standard on Related Services (ISRS) 4410, Engagements to Compile Financial Instruments

The IAASB will meet in Malta on September 20-24, 2010. As a reminder, all meeting agenda materials are publicly available and posted on the IAASB's website in advance of IAASB meetings. In addition, audio recordings are posted after the meetings.

2. Arnold Schilder Reappointed To Chair IAASB From 2012-2014

The IFAC Board has reappointed Prof. Arnold Schilder to lead the IAASB for the period 2012-2014.

Prof. Schilder's appointment to a second three-year term as IAASB Chairman begins on January 1, 2012. The appointment was approved by the Public Interest Oversight Board-an independent body that oversees IAASB activities-at its latest meeting in Madrid, Spain on June 28-29, 2010.

3. Open for Comment - Exposure Draft of ISA 610, Using the Work of Internal Auditors, and ISA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, and Proposed Impact Analysis Approach

The IAASB has issued an Exposure Draft (ED) for the proposed revision of ISA 610, Using the Work of Internal Auditors. The standard is being revised in recognition of developments in the internal auditing environment as well as the evolving relationship between internal and external auditors.

The proposed revision addresses the responsibilities of the external auditor as they relate to using the work of an entity's internal auditor during an audit. In particular, the new standard aims to enhance the performance of external auditors by providing them a stronger framework for evaluating, as well as using, the work and assistance of internal auditors. Related enhancements concerning the external auditor's required considerations of the internal audit function have been proposed in ISA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, which is also part of the ED.

In addition to setting out the IAASB's main proposals for the revised standards, the ED's explanatory memorandum outlines a pilot approach for analyzing the benefits and impacts of these proposals. This approach provides a structured and transparent means for communicating the effects of proposals to stakeholders. The pilot will help inform the IAASB as well as lead to the further integration of the analysis of benefits and impacts into the standard-setting process. The IAASB's pilot is the first step in the development of an impact analysis process for use throughout IFAC. Other independent standard-setting boards plan to test this process in future projects.

The IAASB invites all stakeholders to comment on its proposals. To access the exposure draft or submit a comment, visit the IAASB's website. Comments for this ED are requested by November 15, 2010.

4. Open for Comment - Exposure Draft of ISAE 3420, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus

In April 2010, the IAASB released its Exposure Draft (ED) of proposed ISAE 3420, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus. The proposed standard deals with the practitioner's responsibilities when reporting on whether the process of compiling pro forma financial information for inclusion in an issuer's prospectus has been properly followed.

The proposed standard is particularly relevant in light of the growing number of cross-border securities offerings and the globalization of capital markets. It provides comprehensive guidance on engagement acceptance considerations and on the nature and extent of the practitioner's work. It also provides an illustrative report arising from such an engagement.

The IAASB invites all stakeholders to comment on its proposals. To access the exposure draft or submit a comment, visit the IAASB's website. Comments should be submitted using the online comment system by September 30, 2010.

5. Existing and Forthcoming ISA Modules

IAASB staff has developed a series of ISA Modules focusing on some of the new and more significantly revised ISAs.

Each module consists of a short video and slides that explain the key principles of, and major changes in, individual ISAs. This non-authoritative material is designed to be of assistance to auditors in the field, trainers, and those responsible for promoting adoption and implementation of the clarified ISAs. ISA modules may be downloaded free of charge from the IAASB Clarity Center. The IAASB encourages IFAC members, associates, regional accountancy bodies, and firms to use these materials and to promote their availability to their members and employees.

IAASB staff is currently developing three new modules, planned for release in October 2010. The new modules are:

• Materiality, Misstatements and Reporting
• Using the Work of an Auditor's Expert
• Written Representations

6.    Share IAASB eNews with Your Colleagues

The IAASB issues regular eNews updates to keep you appraised of the board's activities and recent publications. Please forward this eNews to any interested colleagues and let them know they can subscribe to this and other eNews bulletins.

7.    Register for the 18th World Congress of Accountants in Kuala Lumpur, Malaysia on November 8-11, 2010

The 18th World Congress of Accountants, hosted by the Malaysian Institute of Accountants and IFAC, is November 8-11, 2010. The theme of the congress will be "Accountants: sustaining value creation". The Congress will offer more than thirty panel discussions and speakers from The World Bank, Transparency International, the Financial Stability Board, the European Commission, IFIAR, and the IASB, among others. Thousands of delegates representing the profession from around the world will attend.

For more information about any of the items mentioned above or other information about IFAC, please contact communications@ifac.org.

About the IAASB
The IAASB (www.iaasb.org) 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 IFAC.

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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

In This Issue:

1. IAASB Meetings
2. IAASB Reports on Clarity ISA Implementation Monitoring
3. New Implementation Resources to Support Implementation of the Clarified ISAs
4. Of Special Interest to Small and Medium Practices (SMPs) - Exposure Draft of International Standard on Related Services (ISRS) 4410, Compilation Engagements
5. Open for Comment - Exposure Draft of International Auditing Practice Statement (IAPS) 1000, Special Considerations in Auditing Complex Financial Instruments
6. Open for Comment - Exposure Draft of ISA 610, Using the Work of Internal Auditors, and ISA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, and Proposed Impact Analysis Approach
7. Linda de Beer appointed IAASB Consultative Advisory Group (CAG) Chair
8. European Commission (EC) Issues Green Paper on Auditing
9. Other Relevant IFAC Initiatives
10. Share IAASB eNews with Your Colleagues

1. IAASB Meetings

The most recent IAASB meeting was held on September 20-24, 2010 in St. Julian's, Malta.

In addition to the projects discussed in this eNews, the IAASB deliberated issues relating to the following projects:

• Revision of International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Statements
• Development of ISAE 3410, Assurance on a Greenhouse Gas Statement
• Revision of International Standard on Review Engagements (ISRE) 2400, Engagements to Review Financial Statements
• Revision of International Standard on Auditing (ISA) 720, The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements
• Issues relating to the audit of financial statement disclosures

The IAASB will meet in Orlando, Florida, on December 6-10, 2010. As a reminder, all meeting agenda materials are publicly available and posted on the IAASB's website in advance of IAASB meetings. In addition, audio recordings are posted after the meetings. Visit http://www.iaasb.org/meetings

2. IAASB Reports on Clarity ISA Implementation Monitoring

The IAASB has released a progress report on its project to monitor the implementation of its clarified ISAs. The report, Implementation of the Clarified International Standards on Auditing (ISAs), highlights key findings from the first phase of the IAASB's initiative to develop a process for gathering information to help it evaluate the effective and consistent implementation of the clarified ISAs. Following completion of the Clarity Project, the first phase of this IAASB initiative has focused on learning more about early implementation experiences.

3. New Implementation Resources to Support Implementation of the Clarified ISAs

To further facilitate effective implementation of the clarified ISAs, new resources have been developed to assist auditors as they prepare for the upcoming audit season. These include:

• New ISA Modules. In promoting awareness and understanding of the newly clarified ISAs, the IAASB has released a second series of "ISA Modules" covering ISAs that address materiality in planning and performing an audit of financial statements, the evaluation of identified misstatements, written representations, using the work of an auditor's expert, and auditor reporting. Developed by IAASB staff, each of these modules combines short video presentations and accompanying slides that explain the key principles of, and major changes in, individual ISAs, including the implications for audits of SMEs. The new modules, as well as those developed in 2009, are available to download free of charge from the IAASB Clarity Center on IAASB's website. The IAASB encourages IFAC members, associates, regional accountancy bodies, and firms to use these materials and to promote their availability to their members and employees.
• Staff Q&A on Unusual Transactions. As further support for ISA implementation, IAASB staff has released Auditor Considerations Regarding Significant Unusual or Highly Complex Transactions, a Staff Questions and Answers (Q&A) publication. The Q&A highlights considerations in the ISAs that are relevant to auditing such transactions, often an area that gives rise to risks of material misstatement of the financial statements.

4. Of Special Interest to SMPs - Exposure Draft of International Standard on Related Services (ISRS) 4410, Compilation Engagements

In October, the IAASB released for public exposure proposed ISRS 4410, Compilation Engagements. The proposed standard is the first step in the IAASB'S work to create robust standards for services that can be used by entities that are either not required or do not elect to be audited to meet their business reporting needs. Through a compilation engagement, practitioners can provide significant benefit by applying their expertise in accounting and financial reporting. This expertise is applied to assist the management of an entity in preparing and presenting historical financial information for use by the entity's internal or external stakeholders.

Comments on the exposure draft are requested by March 31, 2011.

5. Open for Comment - Exposure Draft of International Auditing Practice Statement (IAPS) 1000, Special Considerations in Auditing Complex Financial Instruments

In October, the IAASB released for public exposure a new proposed pronouncement-IAPS 1000, Special Considerations in Auditing Complex Financial Instruments that highlights practical considerations for auditors when dealing with complex financial instruments. The pronouncement gives particular emphasis to auditing considerations relating to valuation and disclosure issues for financial statement items measured at fair value.

Along with the proposed IAPS 1000, the IAASB is also exposing for comment proposed changes to the current Preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services, which explains the authority of this and future IAPSs, as well as proposals to withdraw the six existing IAPS. The IAASB plans to finalize proposed IAPS 1000 and the statement of authority in 2011. Auditors, however, may wish to consider the material in the proposed IAPS 1000 as they plan and perform their upcoming audit engagements.

Comments on the exposure draft are requested by February 11, 2011.

6. Open for Comment - Exposure Draft of ISA 610, Using the Work of Internal Auditors, and ISA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, and Proposed Impact Analysis Approach

Recognizing developments in the internal auditing environment and the evolving relationship between internal and external auditors, in July, the IAASB released an exposure draft on a proposed revised standard that addresses the external auditor's responsibilities relating to using internal auditors' work during an audit.

The proposed ISA 610 (Revised), Using the Work of Internal Auditors, aims to enhance the external auditor's performance by providing a stronger framework for evaluating and using the work and assistance of an entity's internal auditors. Related enhancements to the external auditor's required considerations of the internal audit function are also proposed in ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment. 

Comments on the exposure draft are requested by November 15, 2010.

7. Linda de Beer Appointed IAASB Consultative Advisory Group (CAG) Chair

Prof. Linda de Beer has been appointed chair of the CAG to the IAASB. The IAASB CAG is an independent body and provides the forum in which the representatives of its various member organizations-including regulators, preparers, and others with an interest in international auditing and assurance-provide advice on technical and public interest matters relating to the drafts of IAASB standards and strategy.

As a representative of the Johannesburg Stock Exchange, Prof. de Beer previously represented the World Federation of Exchanges on the CAG. She was elected by the CAG membership to succeed the current CAG chairman, David Damant, who since June 2004 has served as the first independent IAASB CAG chairman. Prof. de Beer's appointment-a three-year term effective October 1, 2010-has been approved by the Public Interest Oversight Board (PIOB).

8. European Commission (EC) Issues Green Paper on Auditing

The EC has issued a Green Paer on auditing that focuses on a number of issues, including the role of auditors, public oversight, concentration in the audit market, SME audits, international collaboration, and auditor independence. The deadline for comment submissions is December 8, 2010. The EU Commission has scheduled a hearing in early February 2011, to present and discuss the results of the consultation procedure. It is expected that proposals in certain areas may be made as early as 2011.  

9. Other Relevant IFAC Initiatives

IFAC's SMP Committee has recently released implementation support materials to help practitioners understand and efficiently apply the clarified ISAs. The two volume second edition of the Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities includes various improvements based on feedback from users of the first edition, including two integrated case studies, one of which focuses on an audit of a micro-entity and increased focus on SME audits. A second edition of the Guide to Quality Control for Small- and Medium-Sized Practices was issued in July. The implementation guide is intended to help SMPs understand and efficiently apply the redrafted International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements. 

Initiatives of other IFAC Boards and Committees may also be of interest to those who follow the work of the IAASB, including the following:

• Forum of Firms Issues Paper on Client Acceptance and Continuance
• IFAC and United Nations Conference on Trade and Development (UNCTAD) Host Accountancy Summit on Corporate Governance Reform
• Forum of Firms Focuses on Practical Application of Group Audit Standard
• The Prince's Accounting for Sustainability Project (A4S) and the Global Reporting Initiative (GRI) Announce Formation of the International Integrated Reporting Committee

10. Share IAASB eNews with Your Colleagues

The IAASB issues regular eNews updates to keep you appraised of the board's activities and recent publications. Please forward this eNews to any interested colleagues and let them know they can subscribe to this and other eNews bulletins at the eNews sign-up page.

The IAASB invites all stakeholders to comment on its proposals. To access the exposure drafts discussed in this eNews or submit a comment, visit the IAASB's website. For more information about any of the items mentioned above or other information about IFAC, please contact communications@ifac.org.


About the IAASB
The IAASB (www.iaasb.org) develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the PIOB, which oversees the activities of the IAASB, and the IAASB CAG, 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 IFAC.

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 159 members and associates in 124 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

Below you will find an update of recent and upcoming IFAC Translations & Permissions news. One of IFAC's primary objectives is to develop high-quality standards and guidance that enable accountants worldwide to provide services of consistently high-quality in the public interest. To achieve this objective, IFAC strives to make its publications widely available by enabling individuals to freely download them from itswebsite and permitting interested parties to reproduce and translate them.

In this Issue

1. 2010 Translations Achievements--Official UN Languages
2. Other Translations Activities
3. What to Watch for in 2011
4. Russian Translations Meeting
5. Trados Translation Memory Software
6. Request for Translation Proposals
7. Important Points Regarding IFAC Translations; Q&As and other Resources
8. IFAC Job Posting: Associate, Translations and Permissions

1. 2010 Translations Achievements--Official UN Languages

We continue to encourage a single, high-quality translation per language. The following are highlights in regard to translation of standards and other documents published by IFAC into the official languages of the United Nations (UN). More information can be found in the IFAC Translations Database at www.ifac.org/about-ifac/translations-permissions/translations-database.

• Arabic--An Arabic translation of the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements - 2010 Edition and the Handbook of the Code of Ethics for Professional Accountants - 2010 Edition were published by the Arab Society of Certified Accountants (Jordan).
  
  The Arabic language translation of the IFAC Professional Accountants in Business Committee publication,Defining and Developing an Effective Code of Conduct for Organizations (June 2007), was completed by the Saudi Organization for Certified Public Accountants.
• Chinese--The Chinese translation of the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements - 2010 Edition and the Handbook of the Code of Ethics for Professional Accountants - 2010 Edition is being performed by the Chinese Institute of Certified Public Accountants (CICPA). 
  
  In addition, a translation of the Handbook of International Public Sector Accounting Pronouncements - 2010 Edition is in progress by the China Financial and Economic Publishing House, on behalf of the Ministry of Finance of the People's Republic of China.
  
  Information about Chinese translations of the IFAC Professional Accountancy Organization Development Committee (formerly the Developing Nations Committee) publication, Good Practice Guide: The Education, Training, and Development of Accounting Technicians (2009), and the IFAC Professional Accountants in Business Committee publication, Financial Reporting Supply Chain-Current Perspectives and Directions(2008), performed by CICPA has been posted on the IFAC Translations Database. 
• French--Several IFAC member bodies collaborated to produce a single, high-quality French translation of the Code of Ethics for Professional Accountants (July 2009) of the International Ethics Standards Board for Accountants (IESBA). See more about this achievement in the most recent version of IFAC News.
  
  CGA-Canada has published a French translation of the IFAC Small and Medium Practices (SMP) Committee publication Guide to Quality Control for Small- and Medium-Sized Practices - Second Edition(July 2010).
• Russian--The Chamber of Auditors of the Republic of Kazakhstan is translating the Handbook of International Standards on Auditing and Quality Control - 2009 Edition into both Russian and Kazakh. 
  
  The Ministry of Finance of the Republic of Kazakhstan is translating the Handbook of International Public Sector Accounting Pronouncements - 2010 Edition into both Russian and Kazakh.
  
  Russian translations of the SMP Committee publication, Guide to Quality Control for Small- and Medium-Sized Practices (March 2009), and the Framework for International Education Standards for Professional Accountants (December 2009) of the International Accounting Education Standards Board (IAESB) were performed by the Collegium of Auditors (Kazakhstan).
• Spanish--The Latin American Review Committee, coordinated by the Federación Argentina de Consejos Profesionales de Ciencias Económicas and including participants from IFAC member bodies in numerous Latin American countries, has completed the review of the translation of the IAASB Glossary of Terms performed by the translating bodies of Spain--Instituto de Censores Jurados de Cuentas de España (ICJCE) and Instituto de Contabilidad y Auditoría de Cuentas (ICAC)--and is in the process of reviewing the translations of the individual ISAs and ISQC 1 performed by the two Spanish bodies. The goal is to publish, during the first part of 2011, a Spanish language translation of the 2009 IAASB Handbook that is acceptable for use in Spain and Latin America.
  
  ICJCE has completed a Spanish language translation of the revised Code of Ethics for Professional Accountants (July 2009) and is in the process of finalizing its review

2. Other Translations Activities

• Translations of the IAASB's clarified standards have been published in numerous European languages, including Croatian, Czech, German, Finnish, Lithuanian, Norwegian, Polish, Portuguese, Romanian, Slovakian, Slovenian and Swedish. Translations of the clarified standards into other official languages of the European Union have been completed and are presently subject to finalization of the review by the European Commission's Directorate General of Translations (DGT), prior to their publication.
• Numerous translations of the revised IESBA Code of Ethics for Professional Accountants, various SMP Committee implementation guidance documents, and other publications issued by IFAC have been performed. Please see the IFAC Translations Database for more information.

3. What to Watch for in 2011

The following is an overview of some developments to watch for in 2011:

• Planned publication by the Arab Society of Certified Accountants (Jordan) of the Arabic translation of theHandbook of International Public Sector Accounting Pronouncements - 2010 Edition
  
• Planned publication by IFAC of the following policy statements/positions in the five official UN languages (Arabic, Chinese, French, Russian, and Spanish):
1. Policy for Reproducing, or Translating and Reproducing, Publications Issued by the International Federation of Accountants (December 2008) 
2. Policy for Translating and Reproducing Standards Issued by the International Federation of Accountants(December 2008) 
3. Modifications to International Standards of the International Auditing and Assurance Standards Board (IAASB) - A Guide for National Standard Setters that Adopt the IAASB's International Standards but Find It Necessary to Make Limited Modifications (Policy Position, July 2006)
• Translations of the IAASB's clarified standards in the other official languages of the European Union, to be published upon completion of the DGT review (including major world languages such as French, German, Italian, and Spanish)
• Planned publication of a Russian translation of the Handbook of International Standards on Auditing and Quality Control - 2009 Edition by the Chamber of Auditors of the Republic of Kazakhstan and Handbook of the Code of Ethics for Professional Accountants - 2010 Edition, being performed the Siberian Academy of Finance and Banking (Private Educational Institution of Higher Professional Education) (SAFB) and reviewed by representatives of various IFAC member bodies
• Possible Spanish language translations of certain SMP Committee implementation guides and the 2010 edition of the Handbook of International Public Sector Accounting Pronouncements (the latter with proposed funding by the World Bank)
• Possible translations of IFAC's Professional Accountancy Organization Development Committee's updated Toolkits into selected official UN languages

In connection with the 2010 World Congress of Accountants in Kuala Lumpur, Malaysia, IFAC hosted a meeting regarding the possibility of developing a single, high-quality Russian language translation of the IAASB's clarified standards that would be recognized by all Russian-speaking countries. Representatives of 14 organizations (mainly IFAC member bodies and associates) representing eight countries participated in the meeting.

There was strong interest in creating a multinational Russian language Review Committee to work towards this goal. By combining expertise and pooling resources, participating organizations will be able to achieve synergies and sustainable translation processes, thereby facilitating adoption and implementation of the clarified standards in individual countries.

5. Trados Translation Memory Software

IFAC's Translations function has recently commenced populating the translation memory software Trados with key terms and certain translated content. In addition to providing a central repository of translations, Trados will enable the creation of translation assets and development of sustainable translation processes. By storing translated content once in Trados, it will be possible to share and reutilize that content, thereby reducing processing time and the need to perform multiple or new translations. It will also enhance consistency in the use of translated terminology.

IFAC's member bodies and associates are encouraged to use Trados where possible to enhance the quality and efficiency of their translations and to more easily and effectively collaborate in regard to translations of standards and publications issued by IFAC. Please contact IFAC staff with questions or for relevant information.

6. Request for Translation Proposals

IFAC would especially welcome translation proposals for the following standards:

• Arabic, Chinese, or French translations of the Handbook of International Education Pronouncements - 2010 Edition
  
• Updated French translation of the Handbook of International Public Sector Accounting Pronouncements - 2010 Edition (the most recent French translation of the IPSASB Handbook is the 2007 edition)

7. Important Points Regarding IFAC Translations; Q&As and other Resources

• IFAC's publications are copyrighted material. Please refer to our relevant policy statements on www.ifac.org/about-ifac/translations-database and always ask permission before reproducing or translating any IFAC publications. You can ask for permission by contacting permissions@ifac.org.

• IFAC member bodies and other stakeholders are among our best resources for keeping the Translations Database up to date. Always feel free to alert us to any errors or issues.

• Use your fellow IFAC members and stakeholders as a resource in your reproduction and translation efforts. Cooperating with other IFAC bodies helps to reduce duplication of efforts and leads to more efficient use of existing resources. You will also find a helpful Questions and Answers (Q&A) document on our website:www.ifac.org/about-ifac/translations-permissions.

8. IFAC Job Posting: Associate, Translations and Permissions

IFAC is presently searching for an Associate for its Translations and Permissions function. The associate will support a wide range of activities, including using translation memory software to build translation assets, participating in/managing translation projects as appropriate, permission and contract management for translation and reproduction agreements, developing routines and processes, and assisting in the strategic development of the Translations and Permissions Department. For more information, please click here:

About IFAC
IFAC (www.ifac.org) 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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

In This Issue:

1. IAASB Meetings
2. IAASB Invites Comment on Its Future Strategy and Work Program
3. Of Special Interest to Small and Medium Practices (SMPs) - Open for Comment - Exposure Drafts of International Standards on Review and Compilation Engagements; SMP Quick Poll
4. Open for Comment - Exposure Draft of International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements
5. Open for Comment - Discussion Paper, The Evolving Nature of Financial Reporting: Disclosure and Its Audit Implications
6. IAASB Issues Audit Quality Publication to Stimulate Debate
7. IAASB Responds to European Commission (EC) Green Paper on Auditing
8. IAASB Welcomes INCOSAI's Declaration on International Standards of Supreme Audit Institutions
9. Chinese Auditing Standards Board and IAASB Issue Joint Statement Regarding Convergence of International Standards
10. New Members Appointed to the IAASB
11. IAASB Seeks Technical Managers; Other IFAC Positions Also Available
12. Other Relevant IFAC Initiatives
13. Share IAASB eNews with Your Colleagues

1. IAASB Meetings

The most recent IAASB meeting was held on December 6-10, 2010 in Orlando, Florida. In addition to the projects discussed in this eNews, the IAASB deliberated issues relating to the following projects:

• Revision of International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Statements
• Auditor reporting

The IAASB will meet in Paris, France, on March 14-18, 2011. All IAASB meeting agenda materials are publicly available and posted on the IAASB's website in advance of meetings. In addition, audio recordings are posted after the meetings. Visit www.iaasb.org/Meetings.php.

2. IAASB Invites Comment on Its Future Strategy and Work Program

The IAASB has released for comment its Proposed Strategy and Work Program for 2012-2014. The IAASB is proposing to remain focused on three strategic areas:

• Developing and revising standards and pronouncements;
• Monitoring and facilitating adoption of those standards; and
• Responding to implementation concerns and improving the consistency of the standards' practical application.

The IAASB invites all stakeholders to comment on its proposed strategy and possible actions to implement the proposed strategy. Comments on the Consultation Paper are requested by April 4, 2011.

3. Of Special Interest to SMPs - Open for Comment - Exposure Drafts of International Standards on Review and Compilation Engagements; SMP Quick Poll

The IAASB has released for public exposure proposed ISRE 2400 (Revised), Engagements to Review Historical Financial Statements. This revised standard is the second IAASB proposal that addresses the growing international need for robust standards for services that can be used by entities that are either not required or do not elect to be audited to meet their business reporting needs. Comments on the Exposure Draft of ISRE 2400 (Revised) are requested by May 20, 2011.

In October, the IAASB released for public exposure proposed ISRS 4410 (Revised), Compilation Engagements. Through a compilation engagement, practitioners can provide significant benefit by applying their expertise in accounting and financial reporting. This expertise is applied to assist the management of an entity in preparing and presenting historical financial information for use by the entity's internal or external stakeholders. Comments on the Exposure Draft of ISRS 4410 (Revised) are requested by March 31, 2011.

SMP Quick Poll
Are you a practitioner in a small- or medium-sized practice? Take the SMP Committee's short survey! The survey should take only 3-5 minutes to complete, and the results will be highlighted in the next SMP eNews. Join the dialogue on current challenges and issues faced by SMPs by taking the survey now: SMP Quick Poll The survey will close on Monday, February 7, 2011.
 

4. Open for Comment - Exposure Draft of International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements

In response to a strong and growing need for mechanisms to enhance the reliability of the underlying information used in carbon trading transactions, the IAASB has released for comment a new International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements. The proposed standard addresses the practitioner's responsibilities in identifying, assessing, and responding to risks of material misstatement, and contains illustrative assurance reports on greenhouse gas statements. The proposed requirements and guidance also recognize that most engagements will be undertaken by a multidisciplinary team, so they address the need for the assurance practitioner to integrate experts--in engineering or environmental science, for example--into various stages of the engagement. Comments on the Exposure Draft are requested by June 10, 2011.
 

5. Open for Comment - Discussion Paper, The Evolving Nature of Financial Reporting: Disclosure and Its Audit Implications

In order to better understand different viewpoints on a range of issues about financial statement disclosure practices, as well as the implications from an auditing perspective, the IAASB has released for public comment a discussion paper titled The Evolving Nature of Financial Reporting: Disclosure and Its Audit Implications. The paper highlights recent trends in the range, volume, and complexity of financial statement disclosures, and explores practical challenges in preparing, auditing, and using them. It also addresses critical issues, such as the nature and extent of evidence for different types of disclosures, and the application of the concept of materiality to disclosures. Views from all stakeholders are sought, and the discussion paper asks specific questions of preparers; investors, lenders, and other creditors; regulators; and auditors. Comments on the discussion paper are requested by June 1, 2011.

6. IAASB Issues Audit Quality Publication to Stimulate Debate

In its continuing efforts to facilitate robust audits in the public interest and to stimulate further debate on audit quality, the IAASB has released a publication titled Audit Quality: An IAASB Perspective. The paper highlights several important perspectives on audit quality, as a means to stimulate thoughts and discussions among stakeholders in the financial reporting process. It also provides an indication of the IAASB's plans to consider pursuing a future project on audit quality. Perspectives on audit quality and views on key audit quality issues are welcomed by the IAASB at any time. They may be submitted in writing to one or more of the key IAASB contacts identified in the publication.
 

7. IAASB Responds to European Commission (EC) Green Paper on Auditing

The IAASB has provided comments on matters raised in the European Commission's Green Paper on auditing that are directly within the remit of the IAASB. The IAASB will follow the progress of the EC's Green Paper consultation with interest, in particular as the IAASB works to develop its 2012-2014 strategy and work program.
 

8. IAASB Welcomes INCOSAI's Declaration on International Standards of Supreme Audit Institutions

In December, the IAASB welcomed the issuance of the South African Declaration on International Standards of Supreme Audit Institutions (ISSAIs) (the Declaration), resulting from the 20th INCOSAI, the triennial Congress of the International Organization of Supreme Audit Institutions (INTOSAI). The Declaration represents INTOSAI's endorsement of a framework comprised of a comprehensive set of ISSAIs and INTOSAI guidance on good governance (INTOSAI GOVs). The ISSAIs and INTOSAI GOVs provide guidance to public sector auditors responsible for financial audit, performance audit, and compliance audit, and also address transparency and accountability, quality control, peer review, and internal audit. The Declaration also calls upon INTOSAI members to use the ISSAI framework as a common frame of reference for public sector auditing by implementing the ISSAIs in accordance with their mandate and national legislation and regulations.

The ISSAIs for financial audits include the clarified International Standards on Auditing (ISAs), as issued by the IAASB, along with supplemental guidance referred to as Practice Notes for each of the 36 clarified ISAs, as developed by INTOSAI's Financial Audit Subcommittee of the Professional Standards Committee (PSC). The IAASB has observer status at INTOSAI's PSC meetings and assisted in the development of the Practice Notes.
 

9. Chinese Auditing Standards Board and IAASB Issue Joint Statement Regarding Convergence of International Standards

In November, the Chinese Auditing Standards Board (CASB) and the IAASB met to discuss convergence of international standards. In accordance with the principle of continuous and comprehensive convergence, the CASB has completed the revision of Chinese Standards of Audit (CSAs), and achieved full convergence with the clarified ISAs. The revised CSAs were officially released in early November 2010, and are effective for audits of financial statements for periods beginning on or after January 1, 2011. During the process of international convergence, the CASB made limited additions it considered necessary and maintained some standards dealing with matters that are not specially covered in ISAs to reflect China's unique circumstances and business requirements, such as standards for the verification of capital contributions and communication between predecessor and successor auditors. The IAASB recognizes that such additional requirements may be necessary and are acceptable where they do not conflict with the ISAs.

10. New Members Appointed to the IAASB

The Public Interest Oversight Board (PIOB) has confirmed a number of new and reappointed members of the IAASB, effective January 1, 2011. The new members of the IAASB are:

• Jean Blascos (France), a practitioner in a transnational firm;
• Jianshen Chen (China), a practitioner in a large national firm; and,
• Merran Kelsall (Australia), a non-practitioner and chair of a national auditing standard setter.

The following members were reappointed for an additional term:

• John Archambault (United States), a practitioner in a transnational firm;
• Jon Grant (United Kingdom), a non-practitioner and staff member of a national audit regulator; and,
• Caithlin McCabe (Australia), a practitioner in a transnational firm.

In addition, Diana Hillier was reappointed as deputy chair of the IAASB.

These six new and re-appointed members will work alongside the chairman, Prof. Arnold Schilder, the deputy chair, and the other 10 board members in setting high-quality auditing and assurance standards. These appointments maintain the balance of nine practitioners and nine non-practitioners on the board, and enhance the diversity of the board in terms of gender, regional, and professional balance.

11. IAASB Seeks Technical Managers; Other IFAC Positions Also Available

The IAASB is currently seeking technical managers to support its standard-setting, outreach, and liaison activities. Among other responsibilities, technical managers:

• Plan, coordinate, and support IAASB project task forces, including preparation of meeting agenda papers for relevant projects;
• Conduct project research, including liaison with national and international standard setters, and IFAC member bodies around the world; and
• Draft standards and guidance (exposure drafts and final versions) in consultation with the IAASB and relevant task forces, and oversee their publication and release.

The International Ethics Standards Board for Accountants (IESBA) is also seeking to fill a technical manager position, and other positions are currently open within IFAC. 

12. Other Relevant IFAC Initiatives

Initiatives of other IFAC committees and independent standard-setting boards supported by IFAC may be of interest to those who follow the work of the IAASB, including the following:

• IFAC Posts 2012 Call for Nominations for Boards and Committees
• International Accounting Education Standards Board Proposes Clarified Standard on Continuing Professional Development
• IFAC Addresses the Concept of the Public Interest
• IFAC Small and Medium Practices Committee Releases Second Editions of the Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities and the Guide to Quality Control for Small- and Medium-Sized Practices

13. Share IAASB eNews with Your Colleagues

The IAASB issues regular eNews updates to keep you apprised of the board's activities and recent publications. Please forward this eNews to any interested colleagues and let them know they can subscribe to this and other eNews bulletins at www.ifac.org/e-news.

The IAASB invites all stakeholders to comment on its proposals. To access the exposure drafts, consultation papers, and discussion papers discussed in this eNews or submit a comment, visit the IAASB website. For more information about any of the items mentioned above or other information about IFAC, please contact communications@ifac.org.

About the IAASB
The IAASB (www.iaasb.org) develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the PIOB, which oversees the activities of the IAASB, and the IAASB CAG, 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 IFAC.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

Prof. Arnold Schilder, IAASB Chairman, delivered a speech on global progress in the use of the Clarified International Standards on Auditing (ISAs) at CReCER 2011 (June 30, 2011, Buenos Aires, Argentina). "International Auditing and Assurance Standards: Implementation Challenges and Success Factors" reflected on the International Auditing and Assurance Standards Board (IAASB)'s success, including the rapid global adoption of the Clarity ISAs so far. CReCER (Accounting and Accountability for Regional Economic Growth) is a regional event organized by the World Bank, IFAC, the Inter-American Development Bank, the Global Public Policy Committee, which is comprised of the six largest auditing firms in the world, and the Argentine Federation of Professional Councils in Economic Sciences.

To access the entire speech and other speeches delivered by IFAC leadership, visit the Speech Library on the IFAC website.

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 IFAC.

The aim of the project is to develop a standard that provides requirements for the first-time adoption of accrual basis IPSASs.

Scope

This project will consider issues related to public sector entities that are moving from an accrual basis of accounting to accrual basis IPSASs. It will also consider public sector entities that are moving from a cash basis, modified cash basis or partial accrual basis of accounting, to accrual basis IPSASs.

The objective of the project is to: 

Professional Accountants in Business Committee member Alan Johnson recently gave a presentation on corporate governance during Contabilidad y Responsabilidad para el Crecimiento Económico Regional (Conference for Accounting and Accountability for Regional Economic Growth, or CReCER)