At its meeting on December 5-9, 2016, the IAASB discussed the ISA 540 Task Force’s (ISA 540 TF) proposals relating to the revision of ISA 540. The IAASB supported the ISA 540 TF’s proposal to focus the work effort on the objectives to be achieved by the auditor. The IAASB also discussed other aspects of the project, including a proposed consequential amendment to ISA 500 related to external information sources and a possible requirement on when testing the operating effectiveness of controls would be required when auditing accounting estimates. While recognizing that the subject matter is complex, the ISA 540 TF was asked to simplify and clarify the material to the extent possible. An Exposure Draft of proposed revised ISA 540 is intended to be presented to the IAASB for approval in March 2017.

Review the summary and the Highlight Summary on the IAASB's Web site.