To continue to drive engagement and solicit feedback on its public consultation on a proposed new standard for audits of financial statements of less complex entities (LCE), the IAASB has published a targeted outreach plan. This plan details the IAASB’s focused efforts to facilitate feedback from different stakeholder groups through roundtables, presentations and other related activities. The plan is expected to evolve and will continue to be updated as events and activities are added or confirmed.
The landmark proposed new standard for audits of financial statements of less complex entities responds to demands to have a set of high-quality audit requirements tailored for the needs of less complex entities. The proposed new standard aims to provide a globally consistent approach at a time where several jurisdictional-specific less complex entities standards or related initiatives are arising.
The IAASB strongly encourages all interested stakeholders to provide their feedback on the proposed standard by January 31, 2022. The standard is relevant to users of financial statements, owners, management and those charged with governance of entities, preparers of financial statements, legislative or regulatory authorities, relevant local bodies with standard-setting authority, professional accountancy organizations, academics, regulators and audit oversight bodies, and auditors and audit firms, among others.
Stakeholders can submit responses through the “Submit Comment” button online. The Exposure Draft will also be available in French and Spanish in early September 2021.
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 in collaboration with IFAC invite you to join the final webinar in our quality management series, Bringing It All Together: Exploring the Components of the Quality Management System, on August 18 from 11 am–12 pm GMT on Zoom with livestreaming on YouTube. The webinar will address aspects of International Standard on Quality Management 1, including governance and leadership, information, communication, and networks.
ISQM 1 is part of the IAASB’s suite of quality management standards, issued in late 2020. The standards strengthen and modernize how firms approach quality management. They also mark an evolution from a traditional, more linear approach for quality control to an integrated quality management approach.
The webinar will be held in English and available on YouTube following the session. Participants joining live via Zoom will be able to submit questions.
Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System
This webinar series is part of the IAASB’s implementation support efforts. Looking for additional resources on the suite of quality management standards? Check out the IAASB’s dedicated web page: iaasb.org/quality-management
Bringing it all Together: Exploring the Components of the Quality Management System
La serie de webinars sobre gestión de la calidad en las firmas de auditoría, organizada por el IAASB en colaboración con la IFAC, profundiza en los aspectos del Estándar internacional sobre gestión de la calidad 1 del IAASB, gestión de la calidad para las firmas que realizan auditorías o revisiones de estados financieros u otras garantías o servicios relacionados.
The Quality Management webinar series, hosted by the IAASB in collaboration with IFAC, takes a deep dive into aspects of the IAASB’s International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.
Today, the International Auditing and Assurance Standards Board (IAASB) published an exposure draft of its new, stand-alone standard for audits of financial statements of less complex entities. This landmark new draft standard responds to demands to have a set of high-quality requirements tailored for the needs of less complex entities (LCEs). The new standard for audits of financial statements of LCEs will provide a globally consistent approach at a time where several jurisdictional-specific LCE standards or related initiatives are arising. The release of the exposure draft is part of a broader effort to reduce complexity, improve understandability, and make International Standards on Auditing (ISAs) more scalable and proportionate to circumstances of audited entities.
“Smaller, less complex entities play a vital role in the world’s economy. The IAASB has prioritized addressing the needs of stakeholders representing these entities over the last eighteen months,” said IAASB Chair Tom Seidenstein. “Our new proposed standard’s objective is appropriately focusing the work of auditors through requirements designed to be proportionate to the typical nature and circumstance of less complex entities. We are not compromising on the quality of the audit.”
The IAASB strongly encourages all interested stakeholders to provide their feedback by January 31, 2022. The standard is relevant to users of financial statements, owners, management and those charged with governance of entities, preparers of financial statements, legislative or regulatory authorities, relevant local bodies with standard-setting authority, professional accountancy organizations, academics, regulators and audit oversight bodies, and auditors and audit firms, among others.
Stakeholders can submit responses through the “Submit Comment” button online. The Exposure Draft will also be available in French and Spanish in early September 2021. The IAASB is also planning outreach on the new draft standard; an outreach plan will be available on the IAASB’s website in late August 2021.
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.
New Proposed Stand-Alone Standard to Meet Market Needs
Smaller, less complex entities play a vital role in the world’s economy. In an increasingly complex world with evolving reporting needs, a need for a set of high-quality requirements tailored for the audits of less complex entities has emerged. With this consultation, the IAASB is moving to provide a globally consistent approach at a time where a number of jurisdictional-specific less complex entity standards are emerging, which is not in the public interest.
The IAASB in collaboration with IFAC invite you to join our upcoming quality management webinars, Resourcing for Quality Management on July 29 from 11 am–12 pm GMT and Your Firm’s Monitoring & Remediation Process on August 5 from 11 am–12 pm GMT. Both webinars will be held on Zoom with livestreaming on IAASB’s YouTube channel.
ISQM 1 is part of the IAASB’s suite of quality management standards, issued in late 2020. The standards strengthen and modernize how firms approach quality management. They also mark an evolution from a traditional, more linear approach for quality controlto an integrated quality managementapproach. These webinars address how firms can resources appropriately and establish monitoring and remediation processes to align with the requirements in International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.
The webinars will be held in English and available on YouTube following the session. Participants joining live via Zoom will be able to submit questions.
Discussion will include references to the requirements of International Standard on Auditing 220, Quality Management for an Audit of Financial Statements
The recording from the first webinar in this series, Your Firm’s Risk Assessment Process, is available on YouTube. You are also invited to the final webinar in the series:
Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System
This non-authoritative First-time Implementation Guide will help practitioners understand and implement the requirements of the International Standard on Quality Management (ISQM) 2, Engagement Quality Reviews. It will help practitioners and firms successfully plan and implement the standards by the effective date, December 15, 2022.
It does not amend or override the International Standard on Quality Management (ISQMs), the texts of which alone are authoritative. Reading the publication is not a substitute for reading the ISQMs.
