The latest edition of the IAASB handbook includes International Standard on Auditing (ISA) 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors).

The International Auditing and Assurance Standards Board (IAASB) has issued new guidance on the application of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE. The Authority Supplemental Guidance will help users in determining the appropriate situations to use the standard.

The guidance will be particularly beneficial for legislative and regulatory authorities implementing the standard, firms developing related policies or procedures, and auditors determining whether the standard is appropriate to use for a specific engagement.

Accessible on the IAASB website, this guide complements previously released resources, including videos, webinars, and the Auditor Reporting Supplemental Guidance. Later this year, the IAASB will also issue an adoption guide and a first-time implementation guide. Collectively, these materials provide a comprehensive toolkit for navigating adoption and implementation of the ISA for LCE.

The new guidance does not amend or override the ISA for LCE, the text of which alone is authoritative. Reading the guidance is not a substitute for reading the ISA for LCE. For more information and to access the new guidance, visit: www.iaasb.org/ISAforLCE

This guidance on the application of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE, will help users in determining the appropriate situations to use the standard.

Professional accountants in business (PAIBs) occupy a pivotal position in driving sustainable business practices, fostering transparency, and contributing to the economic and social well-being of communities worldwide. Recognizing that in an increasingly interconnected and rapidly changing global economy, the role of accountants is evolving, the theme of our last PAIB Advisory Group meeting was Accounting for a Better World. The event was hosted by IFAC Member SAICA (South African Institute of Accountants) in Cape Town, South Africa, and the theme was inspired by the ACCA’s agenda for action.

PAIBs comprise a significant part of the profession working in commerce, industry, financial services, education, and the public and not-for-profit sectors, and the PAIB Advisory Group focuses on ensuring these accountants meet the future needs of business and the public sector by convening leaders, sharing their knowledge and insights, and identifying trends globally.  

Informed by IFAC’s PAIB Advisory Group’s last meeting, our new article, Accounting for a Better World, outlines multiple opportunities where professional accountants can have an impact, including: 

• Enabling Africa’s transformation  
• Diversifying entry into the accountancy profession and strengthening the talent pipeline  
• Ensuring sustainability and excellence as a CFO Driving integrated thinking through strong corporate governance 
• Harnessing the transformative opportunities of AI  
• Nature-related accounting and financial disclosure  

Sanjay Rughani, PAIB Advisory Group Chair said: “To IFAC’s members worldwide, I urge you to seize the momentum generated by our discussions and embark on a journey of continuous learning, innovation, and collaboration. Our discussions were not merely exchanges of ideas but rather catalysts for action, igniting a sense of purpose and urgency. Professional accountants, now more than ever, have the opportunity to contribute to creating a better world.” 

Read the article now.   

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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.  

About the PAIB Advisory Group  

Formed in 1977, the PAIB Advisory Group is comprised of volunteers with experience and expertise in the world of business and the public sector, nominated by the professional accountancy organizations that make up IFAC’s membership.  

The International Federation of Accountants (IFAC) has submitted a comment letter to the International Auditing and Assurance Standards Board (IAASB) on its Exposure Draft for the proposed amendments to Standards resulting from revisions to the definitions of  listed entity and public interest entity (PIE) in the IESBA Code. 

IFAC appreciates the efforts of the IAASB in working with the IESBA to harmonize definitions and terminology in this important area and is broadly supportive of the proposed changes. Within our response we raise several challenges: 

• Existing expectations gaps could be compounded by language implying that standards should be required to meet heightened stakeholder expectations for PIEs.   
• Further clarity needs to be provided about the extent of work the auditor is required to carry out to identify PIEs that are not labelled as such by law, regulation, or other requirements.  
• The extension of the requirement to provide written confirmation of auditor independence to those charged with governance should also set clearer timings for when this should take place.  
• Considering the level of activity that will be needed for implementation, the proposed 18 to 24-month period following approval of these amendments might not be sufficient. 

IFAC will remain engaged with the IAASB’s consultation process until the publication of a final standard and supporting guidance materials.