The Board of the International Federation of Accountants (IFAC) has reappointed Prof. Arnold Schilder to lead the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board supported by IFAC, for the period 2012–2014.
As chairman, Prof. Schilder will continue to lead the IAASB as it works to set high-quality auditing and assurance standards and to facilitate the convergence to international standards. He will play a key role in guiding the IAASB as it strives to enhance the quality and uniformity of audit practice throughout the world by promoting the adoption and implementation of its International Standards on Auditing (ISAs). And, he will steer the board into the future as it works to build public confidence in financial reporting by developing new standards addressing assurance services such as on greenhouse gas statements and pro forma financial information.
“I am delighted to announce that Arnold Schilder will continue to serve as chairman, which will provide for stability and ongoing leadership of IAASB operations well into the future,” said IFAC Chief Executive Officer Ian Ball. "Arnold has been a superb chairman of the IAASB as it implements its first strategy and work program after the Clarity Project. His leadership has enabled the IAASB to make significant progress on standards for review and compilation engagements, which are particularly relevant to small- and medium-sized practices (SMPs).”
"It has been my great pleasure to chair the IAASB for the past 18 months, and I am honored to have been reappointed to lead the board through 2014,” said Prof. Schilder. “I look forward to continuing the Board’s work to achieve global adoption of the clarified ISAs and to helping practitioners around the world successfully implement these high-quality international auditing standards.”
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 (PIOB)*—an independent body that oversees IAASB activities—at its latest meeting in Madrid, Spain on June 28–29, 2010.
From 1998 to 2008, Prof. Schilder was a member of the Managing Board of the Dutch Central Bank, responsible in particular for banking regulation and supervision. He served as the chairman of the Basel Committee on Banking Supervision's Accounting Task Force from 1999–2006, and from 2005–2008 as a member of the PIOB. During 1994 and 1995 he served also as President of Royal NIVRA. From 1972 to 1998 he worked with PricewaterhouseCoopers, serving since 1985 as an international audit partner.
For more information about the work of the IAASB, visit its homepage at www.iaasb.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 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 (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 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.
* Note to Editors
The Public Interest Oversight Board (PIOB) was formally established in February 2005 to oversee IFAC's auditing and assurance, ethics, and education standard-setting activities as well as the IFAC Member Body Compliance Program. The objective of the PIOB is to increase confidence of investors and others that such activities, including the setting of standards by the IAASB, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.
Recognizing developments in the internal auditing environment and the evolving relationship between internal and external auditors, the International Auditing and Assurance Standards Board (IAASB) today 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 International Standard on Auditing (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.
“Internal auditing standards and practices continue to evolve, as does the relationship between external and internal auditors,” said Prof. Arnold Schilder, IAASB Chairman. “Ensuring that global audit practices take account of these changes benefits both auditors and preparers. Through our revision of ISA 610, we believe external auditors will be better equipped to evaluate opportunities for effective coordination with internal auditors.”
Analyzing Benefits and Impacts of the Proposals In addition to setting out the main proposals of the IAASB, the explanatory memorandum to the exposure draft pilots an approach for analyzing the benefits and impacts of the IAASB’s proposals. The approach provides a structured and transparent means for communicating the effects of proposals to stakeholders.
“Understanding the potential benefits and impacts of proposed changes is an integral part of developing high-quality standards,” said James Gunn, IAASB Technical Director. “This pilot will help inform the IAASB and further integrate the analysis of benefits and impacts into the standards-setting process.”
Matters on which the IAASB would like stakeholders’ input are set out in the explanatory memorandum to the exposure draft.
How to Comment The IAASB invites all stakeholders to comment on its proposals. To access the exposure draft or submit a comment, visit the IAASB's website at www.iaasb.org/ExposureDrafts.php. Comments on the exposure draft are requested by November 15, 2010.
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 (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 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.
Good afternoon and thank you for that kind introduction.
Before I begin, let me first express my deep appreciation to IOSCO for inviting me to speak here today and for sponsoring this very important conference.
I'd also like to take this opportunity to sincerely thank IOSCO's representatives for participating in the work of the IAASB in developing the International Standards on Auditing, or ISAs.
As I'm sure many of you know, IFAC and IOSCO have a long-standing relationship. But I think our relationship has been especially meaningful over the past six to seven years. We were especially proud to receive IOSCO's letter last year in which it officially endorsed the IAASB's ISAs.
We have also been pleased to work with IOSCO as part of the Monitoring Group in its review of the IFAC reforms and look forward to responding to the consultation paper issued recently.
The International Auditing and Assurance Standards Board (IAASB) today released a proposed new assurance standard that addresses the process of compiling pro forma financial information included in prospectuses. Recognizing the increasingly integrated nature of global capital markets and the importance of pro forma financial information in the public's investment decisions, the newly proposed standard is designed to enhance public confidence in how such financial information is produced.
The proposed standard, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus, deals with information-necessary in many forms of domestic and cross-border securities offerings-that illustrates the impact of an event or transaction on an issuer's financial information. It provides comprehensive guidance on the nature and extent of a practitioner's work when reporting on whether the process of compiling pro forma financial information has been properly followed. It also covers related engagement acceptance and reporting considerations, and provides an illustrative report arising from such an engagement.
"Our research indicates that many jurisdictions around the world need a common, high-quality standard that can be consistently, globally applied. Our goal, therefore, is to guide and contribute to the quality of practice in an area of great importance to capital markets," said Arnold Schilder, Chairman of the IAASB.
While all stakeholders are invited to comment on the proposed ISAE 3420, the IAASB recognizes that pro forma financial information is of particular interest and relevance to issuers, investors, analysts, professionals working at securities exchanges, and regulators. Accordingly, the IAASB invites respondents from these constituencies in particular to comment on the proposal, including the content of the illustrative practitioner's report.
"Internationally, investors, regulators, and other stakeholders want and expect consistent, quality work by assurance practitioners, as well as clear and understandable reporting. Over the years, however, different countries have developed different practices in relation to reporting on the process of compiling this type of information, and this is a situation that is not sustainable in the public interest," noted James Gunn, IAASB Technical Director. "The proposed standard seeks to address this issue by helping to create a level playing field for practitioners for such engagements, thereby enabling them to better meet the expectations of investors, regulators, and others."
How to Comment To access the exposure draft or submit a comment, visit the IAASB's website at www.iaasb.org/ExposureDrafts.php. Comments on the exposure draft are requested by September 30, 2010.
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 (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 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.
The International Auditing and Assurance Standards Board (IAASB) today released its 2009 annual report. The report highlights the completion of the landmark Clarity Project surrounding the IAASB's International Standards on Auditing (ISAs), the development of adoption and implementation resources for the ISAs, and the launch of innovative new projects to address emerging issues.The International Auditing and Assurance Standards Board (IAASB) today released its 2009 annual report. The report highlights the completion of the landmark Clarity Project surrounding the IAASB's International Standards on Auditing (ISAs), the development of adoption and implementation resources for the ISAs, and the launch of innovative new projects to address emerging issues.
"During a period of great financial instability and uncertainty, auditors and assurance practitioners faced significant challenges. By seeking public input, responding to emerging needs, and supporting the implementation of global standards, the work of the IAASB continued to contribute to the restoration and maintenance of public confidence in information used for decision making," said IAASB Chairman Arnold Schilder. "This has required diligent adherence by the IAASB to its public interest mandate, which is now entrenched in how the IAASB operates."
This first year of the IAASB's 2009-2011 strategy and work program saw the IAASB produce a range of tools and resources to assist auditors in implementing the now-effective suite of Clarified ISAs. Recognizing the significant demand from auditors and preparers for additional guidance in light of the financial crisis, this work program included a project to develop guidance on auditing complex financial instruments. The year 2009 also marked an important transition to new projects to address a wide range of information needs, such as greenhouse gas emissions, pro forma financial information included in prospectuses, controls at service organizations, and XBRL. The board's standard-setting efforts to address the needs of small- and medium-sized entities, and those who provide services to them, were also progressed in 2009 with the initial steps to update and revise the IAASB's standards addressing review and compilation engagements.
Incorporating public input is essential to ensuring that the IAASB has insights to the different perspectives of international regulators and organizations, national auditing standard setters, practitioners, academia, and other stakeholders. Its commitment to active engagement with stakeholders is reflected in the various outreach activities described in the report that the IAASB participated in during 2009.
The annual report includes a report from the Chairman of the IAASB Consultative Advisory Group on the work of the group in providing input to the IAASB. The IAASB also continues to receive oversight from the Public Interest Oversight Board.
The report notes some of the issues the IAASB will address in the coming years, including those arising from today's global economic crisis. To further inform its work program, the IAASB has released an online questionnaire and invites comment on where the IAASB should focus its efforts during 2012-2014.
The 2009 IAASB annual report can be downloaded from www.ifac.org/IAASB/Resources.php#AnnualReports. Readers are also encouraged to visit the new Clarity Center on the IAASB website (web.ifac.org/clarity-center/index) for more information on the Clarity Project and the full suite of standards that came into effect for audits of financial statements for periods beginning on or after December 15, 2009.
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 (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 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.
The International Auditing and Assurance Standards Board (IAASB) is launching an online questionnaire to inform the development of its strategic direction and related work program for 2012-2014. The initiative is part of the IAASB's broader mandate to consult with key stakeholders to determine which issues should be addressed by the board.The International Auditing and Assurance Standards Board (IAASB) is launching an online questionnaire to inform the development of its strategic direction and related work program for 2012-2014. The initiative is part of the IAASB's broader mandate to consult with key stakeholders to determine which issues should be addressed by the board.
"Input from the public is an important part of the IAASB's due process," said Arnold Schilder, IAASB Chair. "It is essential that the IAASB reach out to the broadest group possible to solicit and incorporate outside views. This helps the board determine its future strategic direction and-at the same time-ensures that the board addresses the most relevant issues relating to auditing and financial reporting."
The questionnaire is the first stage of the IAASB's 18-month consultation process. Through the survey, the IAASB 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 practices, and current and future projects, among other topics.
The results of the questionnaire will be used to develop a formal Consultation Paper, to be issued in December 2010, outlining the IAASB's strategic focus and the potential projects that might best support this focus.
The IAASB encourages all those with an interest in IAASB-developed international pronouncements to submit responses, which are requested by May 14, 2010.
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 (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 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.
The International Federation of Accountants (IFAC) has 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 International Federation of Accountants (IFAC) has released the 2010 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, and the2010 Handbook of the Code of Ethics for Professional Accountants.
The Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements includes the International Auditing and Assurance Standards Board's (IAASB) complete set of clarified International Standards on Auditing (ISAs) and International Standard on Quality Control (ISQC) 1 now in effect. It also includes the IAASB's standards on review, other assurance, and related services, a glossary, and a preface to the international standards.
The Handbook of the Code of Ethics for Professional Accountants contains the Code of Ethics for Professional Accountants (the Code), which has been revised by the International Ethics Standards Board for Accountants (IESBA) for improved clarity and strengthened independence requirements. The revised Code becomes effective on January 1, 2011, with early adoption permitted.
How to Order 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. Print copies of the handbooks are available as a three-piece boxed set for US$185.00 plus shipping. Discounts are available for students, academics, and individuals living in developing countries, as well as for orders of 10 or more copies. Orders can also be placed by calling IFAC at +1 (212) 471-8722.
About the IAASB and IESBA 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 IESBA (www.ifac.org/IESBA) develops ethical 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 IESBA, and the IESBA Consultative Advisory Group, which provides public interest input into the development of the Code.
The structures and processes that support the operations of the IAASB and IESBA are facilitated by IFAC.
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 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.
The International Auditing and Assurance Standards Board (IAASB) looks forward to findings from four new auditing research projects announced today by the Association of Chartered Certified Accountants (ACCA) and the International Association for Accounting Education and Research (IAAER). ACCA, which is funding the project, the IAASB, and the IAAER are committed to supporting this initiative as it will help to inform debate within the profession on a range of important subjects relating to auditing and assurance, and thereby contribute to public confidence in financial reporting.
Through conducting this research, ACCA and the IAAER seek to contribute to the development of the assurance profession around the world and the quality of the standards underpinning the services they provide. The research is expected to provide insights into matters of relevance to the IAASB.
Research topics have been selected in the following four areas:
International consistency and convergence in the application of auditing standards;
The implications of eXtensible Business Reporting Language (XBRL) for audits of, or other assurance services on, financial statements;
The use of risk-based audit methodology by small- and medium-sized practices; and
The nature of professional judgment in auditing.
"We welcome this research, as we expect it to make a contribution to the implementation and application of international standards and our future standard-setting decisions," said IAASB Chair Arnold Schilder. "This initiative aligns with the IAASB's ongoing agenda for innovation within the field of auditing and assurance and our efforts to further our understanding of international developments, including the needs of those using our standards."
The research, which will be conducted by international teams from Australia, Germany, the Netherlands, the U.K., and U.S., will be presented in stages. Research designs will be presented at the International Symposium on Audit Research this summer. Interim research findings will be presented in the spring of 2011, and final results will be available in October 2011.
Further information on the research projects can be found on the websites for ACCA (www.accaglobal.com) and the IAAER (www.iaaer.org).
About the IAASB and IFAC The IAASB (www.ifac.org/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.
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 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.
This IAASB Staff Q&A highlights the growing interest in, and use of, XBRL and raises awareness about how XBRL-tagged data is prepared and how it may affect financial reporting. It also clarifies that the IAASB's auditing pronouncements do not impose requirements on auditors with respect to XBRL-tagged data or the representation of this data.
