David Damant passed away in August 2020.

Mr. Damant’s career included decades of service in audit, accounting and investing and asset management. He was the first independent chair of the IAASB’s Consultative Advisory Group from 2004 to 2010. Upon his appointment, then-President of the International Federation of Accountants Rene Ricol said, “Damant has the experience and integrity to chair the IAASB CAG and present important public interest perspectives. High-quality auditing standards are needed in every part of the world to build investor confidence in capital markets. The support of independent regulators, users and preparers is critical to creating acceptance of the IAASB’s standards.”

During the course of his career, Mr. Damant was the president of the European Federation of Financial Analysts Societies, co-chairman of the International Council of Investment Associations and a member of the Board and Executive and Steering Committees of the International Accounting Standards Committee.

The International Auditing and Assurance Standards Board’s Audit Evidence Working Group has published a Project Update for International Standard on Auditing (ISA) 500, Audit Evidence. The Update includes details about its information gathering activities, issues identified to date, and the way forward for audit evidence. 

Based on its information gathering, the Audit Evidence Working Group developed an initial listing of possible issues and categorized the issues into three overarching topics:

• Changes in the source of information and how the information is processed, communicated, and used.
• Continual developments in technology.
• Professional skepticism.

The Audit Evidence Working Group is in the process of developing a project proposal for the IAASB’s consideration at its December 2020 meeting.

The IAASB’s Audit Evidence Working Group has published this Project Update for ISA 500, Audit Evidence, to update stakeholders about its information gathering activities, issues identified to date, and the way forward.

The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group today published illustrative examples for auditing expected credit loss (ECL) accounting estimates.

The examples illustrate how an auditor could address certain requirements of ISA 540 (Revised). They were developed to assist the auditor in understanding how ISA 540 (Revised) may be applied to:

• International Financial Reporting Standard (IFRS) 9 Impairment (ECL) – Credit Card
• IFRS 9 Impairment (ECL) – Significant Increase in Credit Risk
• IFRS 9 Impairment (ECL) – Macroeconomic Inputs and Data

The examples illustrate accounting estimates with varying characteristics and degrees of complexity. Each example illustrates a selection of requirements from ISA 540 (Revised). Not all requirements are addressed in each example, nor do they cover all parts of those requirements that have been selected. The requirements selected across each example vary to illustrate different aspects of ISA 540 (Revised) and to focus on those requirements that are most relevant to the example.

The three ECL examples are intended to be read together, as requirements that are addressed in one example may also be relevant to another example. For example, the Macroeconomic Inputs and Data example is focused primarily on the audit implications of such data, and does not repeat material in the other examples, which nevertheless may be relevant and applicable to that example more broadly.

These examples do not constitute an authoritative pronouncement of the International Auditing and Assurance Standards Board (IAASB), nor do they amend, extend or override the ISAs or other of the IAASB’s International Standards. It is not meant to be exhaustive and reading these examples is not a substitute for reading the ISAs.

Simple and complex illustrative examples, which demonstrate how an auditor may address selected requirements of ISA 540 (Revised) in the context of the audit of the financial statements of an entity with simple and complex accounting estimates, respectively, are also available.

The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group has prepared illustrative examples for auditing expected credit loss (ECL) accounting estimates. The examples illustrate how an auditor could address certain requirements of ISA 540 (Revised), and have been developed to assist the auditor in understanding how ISA 540 (Revised) may be applied to:

The IAASB invites you to tune into a roundtable discussion addressing fraud in the digital age on September 2 at 7:00 am EDT live streaming on YouTube. The roundtable discussion is part of the IAASB’s new roundtable series to explore issues and challenges related to fraud through discussions with experts and leaders. These discussions will help the IAASB determine an appropriate response to the significant questions raised globally regarding the role of auditors in relation to fraud.

The proliferation of technology presents unprecedented opportunities for fraud—the means, motivation and opportunity are facilitated by the increasing and evolving use of technology. In the rapidly evolving technological landscape, detection becomes harder. As businesses embrace digitization to better serve their customers, there is an emergence of new threats. Technology may be one of the greatest enablers of fraud but also, paradoxically, one of the greatest defenses.

There is a call for auditors to do more in relation to fraud as part of their audit procedures. The IAASB is digging deeper into fraud and technology’s impact thereon, including:

• How technology facilitates the perpetration of fraud;
• How technology is used in financial statement audits to help the auditor in relation to their obligations regarding fraud; and
• How technology is used in forensic audits, and whether there are any aspects of this that may be helpful for the purpose of a financial statement audit.

Moderated by IAASB Deputy Chair Fiona Campbell, this first roundtable session in a series of three will cover:

• New vulnerabilities and fraud risks auditors should consider
• New and emerging technology used to detect fraud
• Current trends in how frauds are perpetrated using technology
• Challenges presented by technology in relation to fraud

Participants in the roundtable discussions include forensic auditors, financial statement auditors, fraud audit methodology experts, third party audit solution companies, regulators, academics, public sector representatives, and others with a strong background in this topic from across the globe.

The full session will be posted online following the event—follow us on Twitter and YouTube or register/subscribe for updates and announcements.

Roundtable Agenda
September 2, 2020, 7:00 am EDT–10:00 am EDT
IAASB YouTube

Save the dates for related upcoming roundtables. 

Today the IAASB released COVID-19 pandemic-related guidance on Review Engagements on Interim Financial Information. This guidance may help auditors in the current uncertain and evolving environment.

Today the IAASB released COVID-19 Pandemic-related guidance for auditors to consider when issuing an auditor's report on the completion of the audit of financial statements.

The guidance document can be found HERE.

In the IAASB’s ongoing response to COVID-19, guidance related to Going Concern and Subsequent Events have also been issued, and more information and helpful links can be found on the IAASB’s COVID-19 Webpage.

To account for COVID-19’s impact on the International Auditing and Assurance Standards Board’s (IAASB) work, its staff capacity to deliver, and the capacity of the IAASB’s stakeholders to participate in consultations and to implement new standards, the IAASB has reconsidered the timelines for its projects in 2020. The Revised Detailed Work Plan Table for 2020-2021 sets out a description of the changes that have been made and the revised timelines for 2020 and 2021 (as applicable).

“Like many others, we revised our Work Plan to respond to realities imposed by the COVID-19 pandemic,” noted Tom Seidenstein, Chair of the IAASB. “Our approach directs capacity to emerging  public interest needs and accounts for the capacity of our stakeholders, volunteer Board Members, and staff. We will also continue to monitor whether further changes are needed."

The Technology Working Group (TWG) of the International Auditing and Assurance Standards Board (IAASB) today released non-authoritative support material related to the auditor’s documentation when using automated tools and techniques (ATT), such as data analytics, robotics automation processes or artificial intelligence applications. 

The publication intends to assist auditors in understanding how the use of ATT during an audit engagement may affect the auditor’s documentation in accordance with International Standard on Auditing (ISA) 230, Audit Documentation, and the documentation requirements of other relevant ISAs.

The publication does not constitute an authoritative pronouncement of the IAASB, nor does it amend, extend or override International Standard on Quality Control (ISQC) 1 or the ISAs, the texts of which alone are authoritative. Reading the publication is not a substitute for reading ISQC 1 or the ISAs.

Click here to learn more.