Welcome to IFAC’s International Auditing and Assurance Standards Board (IAASB) eNews.
In This Issue:
- IAASB Addresses Use of Direct Assistance: Releases ISA 610 (Revised 2013), Using the Work of Internal Auditors
- Open for Comment: A Framework for Audit Quality
- IAASB Invites Input on Strategic Review
- Highlights—February 2013 IAASB Meeting
- IAASB Presents at NYSSA Event
- The IAASB is Hiring
- Other Relevant Standard-Setting Board and IFAC Initiatives
- Share IAASB eNews with Your Colleagues
- World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available
1. IAASB Addresses Use of Direct Assistance; Releases ISA 610 (Revised 2013), Using the Work of Internal Auditors
In follow-up to its 2012 release of stronger standards dealing with the external auditor’s use of an internal audit function’s work, the IAASB has released International Standard on Auditing (ISA) 610 (Revised 2013), Using the Work of Internal Auditors. The revised ISA now includes requirements and guidance for external auditors when determining whether they can use direct assistance from internal auditors and, if so, in which areas, and to what extent. The material addressing direct assistance does not apply if the external auditor is prohibited by law or regulation from obtaining direct assistance. This new material is effective for audits of financial statements for periods ending on or after December 15, 2014.
2. Open for Comment: A Framework for Audit Quality
The IAASB released for public comment a consultation paper addressing audit quality. A Framework for Audit Quality seeks input from stakeholders internationally who have an interest in continually enhancing audit quality, including regulators, audit committees, investors, and audit firms. Through the proposed framework, the IAASB aims to raise awareness of the key elements of audit quality, encourage stakeholders to explore ways to improve audit quality, and facilitate greater dialogue between key stakeholders on the topic. The IAASB is seeking responses to several questions listed in the consultation paper, in particular, whether the framework is clear, comprehensive, and useful.
Comments are requested by May 15, 2013.
3. IAASB Invites Input on Strategic Review
The IAASB has released an online survey seeking public comment, insights, and views from all stakeholders to help shape its future direction for 2015 and beyond. The survey asks for input on emerging developments and trends that are likely to be important in the public interest, as well as specific areas of focus for development of standards and related guidance. It also asks for input on the appropriate balance between setting new and revised standards and facilitating their adoption and effective implementation. Views are also sought on the appropriateness of the IAASB extending its future strategy period to five years (2015–2019). Responses to the survey will inform the development of a formal consultation paper on the strategy and work program commencing 2015, to be issued in late 2013.
All stakeholders are encouraged to complete the survey. Comments are requested by May 7, 2013.
4. Highlights—February 2013 IAASB Meeting
Auditor Reporting
The IAASB deliberated issues arising from stakeholder responses to its June 2012 Invitation to Comment (ITC), Improving the Auditor’s Report. Key discussion points included the need for a new ISA, tentatively ISA 701. ISA 701 will include requirements and guidance to assist auditors in determining what additional information should be included in a new section of the auditor’s report under the heading Key Audit Matters. The IAASB’s view is that the auditor’s judgment of what to report externally is derived from what had been communicated to those charged with governance. The IAASB further considered how proposed ISA 701 should best reflect this view and discussed the factors to guide the auditor’s decision-making process in relation to external reporting.
ISA Implementation Monitoring
The IAASB received an overview of the preliminary findings from Phase 2 of its ISA Implementation Monitoring project. A draft report of findings will be presented to the IAASB at its April 2013 meeting.
Assurance Engagements Other than Audits or Reviews of Historical Financial Information
The IAASB received a presentation providing further background on the nature and scope of direct engagements, and discussed how the features of direct engagements relate to concepts in proposed International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.
For more detailed information, please visit the IAASB’s meetings page. The next IAASB meeting will be held in New York, New York, on April 15–19, 2013.
5. IAASB Presents at NYSSA Event
Dan Montgomery, IAASB deputy chair, joined a January 2013 New York Society of Security Analysts (NYSSA) panel discussion, where he presented The Auditor’s Role Relating to Information Communicated to Financial Statement Users. Mr. Montgomery discussed the IAASB’s proposed changes to the auditor’s report, disclosures within and outside financial statements, and relevant information for users of financial statements.
6. The IAASB is Hiring
The IAASB has open positions within its technical staff team. Interested individuals are invited to submit their resumes to: jobs@ifac.org. Further information about the positions is available on the IAASB home page.
7. Other Relevant Standard Setting Board and IFAC Initiatives
Initiatives of IFAC committees and other independent standard-setting boards supported by IFAC may be of interest to those who follow the work of the IAASB, including the following:
- IESBA Strengthens Key Sections of Code of Ethics for Professional Accountants
- New Publication from IFAC Helps Professional Accountants Implement Effective Business Reporting Processes in Organizations
- IAESB Issues Revised IES 5, Initial Professional Development–Practical Experience
- IFAC Welcomes G-20 Focus on Public Sector Financial Management, EC Report on Accrual-based Accounting
- Engagement Quality Control Reviews: Practical Considerations
8. Share IAASB eNews with Your Colleagues
The IAASB issues regular eNews updates to keep you apprised of the board's activities and recent publications. Please forward this eNews to any interested colleagues and let them know they can register and subscribe to this and other eNews bulletins on the IFAC website.
9. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available
The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy in 2014. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from all over the world will convene at this IFAC event, which is held every four years. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will shape the future of the profession.
The WCOA also provides a global platform for organizations and firms to share their projects and visions via various sponsorship opportunities. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com.