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Location: New York, USA
In June 2017, the International Auditing and Assurance Standards Board (IAASB) released a summary of its June 19 - 22, 2017 meeting
The following topics were discussed at the meeting:
Review the summary including the podcast on the IAASB's Web site.
At its meeting on June 19-22, 2017, the IAASB discussed the Quality Control Task Force’s (QCTF) recommendations on the possible revisions to ISQC 1 that included a discussion of a working draft of ISQC 1 (Revised) and how the proposals are expected to change firm behaviors. The Board was supportive of the overall direction proposed by the QCTF and emphasized the importance of outreach with a variety of stakeholders to seek input on the practicality of the proposals. The Board also encouraged the QCTF to develop guidance and examples to accompany the revised standard in order to explain the implementation and application of the standard. The Board also discussed the appropriate location of the requirements and application material in relation to engagement quality control (EQC) reviews and agreed that a separate standard addressing EQC reviews should be developed.
At its meeting on June 19-22, 2017, the IAASB discussed the Quality Control Task Force’s (QCTF) recommendations on the possible revisions to ISQC 1 that included a discussion of a working draft of ISQC 1 (Revised) and how the proposals are expected to change firm behaviors. The Board was supportive of the overall direction proposed by the QCTF and emphasized the importance of outreach with a variety of stakeholders to seek input on the practicality of the proposals. The Board also encouraged the QCTF to develop guidance and examples to accompany the revised standard in order to explain the implementation and application of the standard. The Board also discussed the appropriate location of the requirements and application material in relation to engagement quality control (EQC) reviews and agreed that a separate standard addressing EQC reviews should be developed.
Review the summary including the podcast on the IAASB's Web site.
At its meeting on June 19-22, 2017, the IAASB, in relation to the quality control considerations relating to networks presented by the QCTF, the ISA 2202 TF and Group Audit Task Force (GATF) (the Task Forces), supported the overall direction proposed by the Task Forces, including not revisiting the definition of networks used in the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics for Professional Accountants and the IAASB’s International standards. The Board encouraged the Task Forces to move forward in considering how changes could be made to the relevant standards to reflect the Board’s discussions.
At its meeting on June 19-22, 2017, the IAASB, in relation to the quality control considerations relating to networks presented by the QCTF, the ISA 2202 TF and Group Audit Task Force (GATF) (the Task Forces), supported the overall direction proposed by the Task Forces, including not revisiting the definition of networks used in the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics for Professional Accountants and the IAASB’s International standards. The Board encouraged the Task Forces to move forward in considering how changes could be made to the relevant standards to reflect the Board’s discussions.
Review the summary including the podcast on the IAASB's Web site.
At its meeting on June 19-22, 2017, the IAASB discussed proposed changes to the requirements in ISA 220. Although some aspects of the changes were supported by the IAASB, such as strengthening the engagement partner’s leadership responsibilities for the engagement, and the consideration of all resources relevant to an engagement, the Board highlighted that many of the changes, as currently drafted, would likely be difficult to implement in practice. The Board also added that it would be difficult to demonstrate compliance with some of the new proposed requirements. The Board encouraged the ISA 220 Task Force to focus its efforts on changes that would enhance audit quality through refocusing the engagement partner’s efforts, or involvement, on areas of high-risk in the audit (i.e., where the issues are complex and require more judgment) and to further consider the way that quality management could be built into some of the other elements of ISA 220 as appropriate.
At its meeting on June 19-22, 2017, the IAASB discussed proposed changes to the requirements in ISA 220. Although some aspects of the changes were supported by the IAASB, such as strengthening the engagement partner’s leadership responsibilities for the engagement, and the consideration of all resources relevant to an engagement, the Board highlighted that many of the changes, as currently drafted, would likely be difficult to implement in practice. The Board also added that it would be difficult to demonstrate compliance with some of the new proposed requirements.
The Board encouraged the ISA 220 Task Force to focus its efforts on changes that would enhance audit quality through refocusing the engagement partner’s efforts, or involvement, on areas of high-risk in the audit (i.e., where the issues are complex and require more judgment) and to further consider the way that quality management could be built into some of the other elements of ISA 220 as appropriate.
Review the summary including the podcast on the IAASB's Web site.
At its meeting on June 19-22, 2017, the IAASB received an update on the activities of the Group Audit Task Force (GATF). The IAASB supported the proposal of the GATF to engage more directly with the QCTF, ISA 220 TF and ISA 315 (Revised) TF, to help ensure that the requirements in those standards provide appropriate connection points between those projects and ISA 600. The IAASB also supported the proposal of the GATF to publish a short project update and asked the GATF to consider topics that are related to standards not under revision, for example, materiality and audit evidence.
At its meeting on June 19-22, 2017, the IAASB received an update on the activities of the Group Audit Task Force (GATF). The IAASB supported the proposal of the GATF to engage more directly with the QCTF, ISA 220 TF and ISA 315 (Revised) TF, to help ensure that the requirements in those standards provide appropriate connection points between those projects and ISA 600. The IAASB also supported the proposal of the GATF to publish a short project update and asked the GATF to consider topics that are related to standards not under revision, for example, materiality and audit evidence.
Review the summary including the podcast on the IAASB's Web site.
At its meeting on June 19-22, 2017, the IAASB received an update on the activities of the Professional Skepticism Working Group (PSWG) and the Professional Skepticism IAASB Subgroup since the last Board meeting in March 2017. The Board supported the release of a communication to update stakeholders about the actions and current status of the PSWG’s work. The Board also discussed the concept of “levels” of professional skepticism and supported the recommendations of the Professional Skepticism IAASB Subgroup not to introduce the concept into the ISAs.
At its meeting on June 19-22, 2017, the IAASB received an update on the activities of the Professional Skepticism Working Group (PSWG) and the Professional Skepticism IAASB Subgroup since the last Board meeting in March 2017. The Board supported the release of a communication to update stakeholders about the actions and current status of the PSWG’s work. The Board also discussed the concept of “levels” of professional skepticism and supported the recommendations of the Professional Skepticism IAASB Subgroup not to introduce the concept into the ISAs.
Review the summary including the podcast on the IAASB's Web site.
At its meeting on June 19-22, 2017, the IAASB received a presentation of high-level observations from respondents to the IAASB’s Request for Input, Exploring the Growing Use of Technology in the Audit, with a Focus on Data Analytics. It was noted that respondents supported the IAASB in undertaking this work and encouraged continued active participation of the Data Analytics Working Group in other current standard-setting projects of the IAASB underway.
At its meeting on June 19-22, 2017, the IAASB received a presentation of high-level observations from respondents to the IAASB’s Request for Input, Exploring the Growing Use of Technology in the Audit, with a Focus on Data Analytics. It was noted that respondents supported the IAASB in undertaking this work and encouraged continued active participation of the Data Analytics Working Group in other current standard-setting projects of the IAASB underway.
Review the summary including the podcast on the IAASB's Web site.