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Location: New York
In September 2017, the International Auditing and Assurance Standards Board (IAASB) released a summary of its September 18-22, 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 September 18-22, 2017, the IAASB received an overview of the comment letters received on proposed ISA 540 (Revised). The Board discussed respondents’ concerns about the complexity of the proposed ISA and potential difficulties in understanding and applying it in practice, and asked the ISA 540 Task Force to look at ways to restructure the proposed ISA to improve its clarity and readability. The Board also discussed the scalability of the ISA, how risk factors could be taken into account, and how best to structure the response to the assessed risks of material misstatement. The Board highlighted the importance of achieving the right balance between issuing a high-quality standard and the public interest in finalizing the ISA in a timely fashion. The IAASB is holding an additional meeting in October to progress proposed ISA 540 (Revised).
At its meeting on September 18-22, 2017, the IAASB received an overview of the comment letters received on proposed ISA 540 (Revised). The Board discussed respondents’ concerns about the complexity of the proposed ISA and potential difficulties in understanding and applying it in practice, and asked the ISA 540 Task Force to look at ways to restructure the proposed ISA to improve its clarity and readability. The Board also discussed the scalability of the ISA, how risk factors could be taken into account, and how best to structure the response to the assessed risks of material misstatement. The Board highlighted the importance of achieving the right balance between issuing a high-quality standard and the public interest in finalizing the ISA in a timely fashion. The IAASB is holding an additional meeting in October to progress proposed ISA 540 (Revised).
Review the summary including the podcast on the IAASB's Web site.
At its meeting on September 18-22, 2017, the IAASB supported the release of a publication to update stakeholders on the IAASB’s project on group audit issues. The publication has subsequently been published on October 4, 2017.
At its meeting on September 18-22, 2017, the IAASB supported the release of a publication to update stakeholders on the IAASB’s project on group audit issues. The publication has subsequently been published on October 4, 2017.
Review the summary including the podcast on the IAASB's Web site.
At its meeting on September 18-22, 2017, the IAASB discussed the feedback received on its Discussion Paper and approved a standard-setting project proposal to revise ISRS 4400, subject to clarifications around the use of judgment, independence, restriction of the report of factual findings and required documentation.
At its meeting on September 18-22, 2017, the IAASB discussed the feedback received on its Discussion Paper and approved a standard-setting project proposal to revise ISRS 4400, subject to clarifications around the use of judgment, independence, restriction of the report of factual findings and required documentation.
Review the summary including the podcast on the IAASB's Web site.
At its meeting on September 18-22, 2017, the ISA 315 Task Force presented to the IAASB proposed changes to the requirements in ISA 315 (Revised) to address identified issues relating to understanding the entity and its environment, including the applicable financial reporting framework, and internal control, including obtaining an understanding of the five components of internal control. The Board broadly supported the proposals, but asked for consideration about some of the proposed changes to the definitions, as well as the perceived focus on controls in obtaining the necessary understanding of the components of internal control. With regard to proposed changes to the identification and assessment of inherent and control risk, the Board supported a separate assessment of inherent and control risk, but asked that the ISA 315 Task Force further consider how this works practically and highlighted that further clarification is needed relating to the assessment of control risk.
At its meeting on September 18-22, 2017, the ISA 315 Task Force presented to the IAASB proposed changes to the requirements in ISA 315 (Revised) to address identified issues relating to understanding the entity and its environment, including the applicable financial reporting framework, and internal control, including obtaining an understanding of the five components of internal control. The Board broadly supported the proposals, but asked for consideration about some of the proposed changes to the definitions, as well as the perceived focus on controls in obtaining the necessary understanding of the components of internal control. With regard to proposed changes to the identification and assessment of inherent and control risk, the Board supported a separate assessment of inherent and control risk, but asked that the ISA 315 Task Force further consider how this works practically and highlighted that further clarification is needed relating to the assessment of control risk.
Review the summary including the podcast on the IAASB's Web site.
At its meeting on September 18-22, 2017, the IAASB discussed the Quality Control Task Force’s (QCTF) recommendations on the possible revisions to ISQC 1 in relation to documentation of the system of quality management. The Board was supportive of the QCTF’s proposals and suggested various refinements. The Board also discussed the QCTF’s recommendations in relation to EQC reviews that would be incorporated in ISQC 1 and the proposed new standard, ISQC 2. The Board confirmed that the purpose of the EQC review is to evaluate the significant judgments made by the engagement team. In addition to various recommendations to further enhance and clarify the various requirements and application material, the Board encouraged the QCTF to improve the robustness of the requirement relating to the scope of the engagements subject to EQC review.
At its meeting on September 18-22, 2017, the IAASB discussed the Quality Control Task Force’s (QCTF) recommendations on the possible revisions to ISQC 1 in relation to documentation of the system of quality management. The Board was supportive of the QCTF’s proposals and suggested various refinements. The Board also discussed the QCTF’s recommendations in relation to EQC reviews that would be incorporated in ISQC 1 and the proposed new standard, ISQC 2. The Board confirmed that the purpose of the EQC review is to evaluate the significant judgments made by the engagement team. In addition to various recommendations to further enhance and clarify the various requirements and application material, the Board encouraged the QCTF to improve the robustness of the requirement relating to the scope of the engagements subject to EQC review.
Review the summary including the podcast on the IAASB's Web site.