Designed for use by small- and medium-sized practices (SMPs), this brochure explains and differentiates the range of audit, review, compilation, and agreed-upon procedures services which SMPs can provide and tailor to meet the needs of their small- and medium-sized entity (SME) clients. It can help current and prospective clients understand the range of services available, when they are appropriate, as well as their benefits.

See your national professional accountancy organization (PAO) for a customizable version to which you can add your contact details.

The IAASB is looking for highly qualified volunteers to serve on the International Auditing and Assurance Standards Board (IAASB) for an initial term of up to 3 years, commencing January 1, 2022.

The IAASB is an independent standard-setting body that serves the public interest by setting high-quality international standards for auditing, quality control, review, other assurance, and related services.

The nominations process, with public interest oversight, aims to select the most suitable candidates for the available positions. Transition to a multi-stakeholder model in line with the Monitoring Group reforms[1] will be taken into consideration during the selection process.

All stakeholders, including the general public, are invited to apply or nominate candidates. The Nominating Committee is interested in candidates from a wide range of relevant backgrounds, including:

• users of audited financial statements or assurance reports, including institutional investors and analysts, audit committee members, and individuals from the corporate governance community;
• nominees from regulatory and audit inspection or oversight bodies;
• preparers of financial reports;
• academics;
• national standard setters;
• those working in the government sector; and
• those who have expertise in technology as it relates to the audit and accountancy profession.

Candidates should ideally have experience with auditing and/or assurance issues and sufficient knowledge of the subject matters considered by the IAASB to be able to contribute effectively to the board’s work. English proficiency (both written and oral) is essential.

Nominations of highly qualified candidates from all regions are encouraged, with a particular emphasis on nominations from the Africa–Middle East and Latin America–Caribbean regions. Nominations of female candidates are also strongly encouraged.

Financial support to cover travel costs for attending board meetings is available for qualifying individuals and public members who do not have a nominating organization.

For more information, including details on number of open positions and positions where renewal of existing members is possible, and to learn how to submit an application, please see the Call for Nominations for IAASB in 2022, also available in Arabic, French and Spanish. The deadline for submitting applications is February 15, 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).

During its December 2020 meeting, the IAASB held its first public discussions on the draft of a separate standard being developed for an audit of less complex entities and the official project proposal to complete and publish the draft standard for public consultation in 2021. The IAASB approved the project proposal and early draft.

Following these decisions, the IAASB today published a new communique detailing plans for the new standard, including current thinking on what the standard will look like, what entities it will apply to, and the development timeline.

For additional information on the IAASB’s efforts to balance the needs of all its stakeholders by addressing complexity, understandability, scalability and proportionality in the International Standards on Auditing, please see its November 2020 communique.

The International Auditing and Assurance Standards Board (IAASB) today released its three quality management standards. The standards promote a robust, proactive, scalable and effective approach to quality management and mark a significant evolution of the existing quality control standards.

“These standards will drive the audit profession to an enhanced approach to quality ‘management’ rather than ‘control’, which better enables the consistent performance of quality engagements, including audits,” according to IAASB Chair Tom Seidenstein. “The standards place greater responsibility on firm leadership for continuously improving the quality of their engagements and remediating when deficiencies are found. When effectively implemented, the standards should help ensure that a commitment to quality is at the heart of firm strategy and operations.”

The suite of standards includes:

• International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements;
• ISQM 2, Engagement Quality Reviews; and
• International Standard on Auditing 220 (Revised), Quality Management for an Audit of Financial Statements. 

The standards become effective on December 15, 2022.

The IAASB has also developed Bases for Conclusions and factsheets to support the implementation of the new standards, which are available on the IAASB’s website. Additional support materials will be published in 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.

IFAC is submitting this comment letter to accelerate the journey towards a coherent global system for reporting sustainability information.

In answer to the fundamental issues at stake—is there a need for a global set of internationally recognized sustainability reporting requirements and should the IFRS Foundation play a leading role through the establishment of a new sustainability standards board—IFAC believes, based on extensive stakeholder outreach, that the answer is a resounding “Yes.”

The IPSASB has issued Non-Authoritative Amendments to IPSAS 41, Financial Instruments.

This pronouncement provides additional non-authoritative guidance in IPSAS 41, Financial Instruments, to clarify the requirements for classifying, recognizing, and measuring public sector specific financial instruments.

ISA 220 (Revised) deals with the engagement partner and engagement team’s responsibilities for quality management for an audit of financial statements. The revised standard modernizes the approach to quality management and requires the engagement partner and engagement team to be proactive in managing and achieving quality.

ISA 220 (Revised) is effective for audits of financial statements for periods beginning on or after December 15, 2022.

ISQM 1 strengthens firms’ systems of quality management through a robust, proactive and effective approach to quality management. The standard encourages firms to design a system of quality management that is tailored to the nature and circumstances of the firm and engagements it performs. ISQM 1 applies to all firms that perform engagements under the IAASB’s international standards. ISQM 1 replaces ISQC 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements and Other Assurance and Related Services Engagements.

ISQM 2 deals with the appointment and eligibility of the engagement quality reviewer, and the engagement quality reviewer’s responsibilities relating to the performance and documentation of an engagement quality review. ISQM 2 applies to all engagements for which an engagement quality review is required to be performed in accordance with ISQM 1.

The outbreak of COVID-19 and the subsequent economic recession have required substantial and rapidly deployed government interventions across the world. IFAC and the MOSAIC Steering Committee partners are delighted to host the Building Resilient and Sustainable Economies Forum, which will be held online December 7 - 11, 2020.