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Location: New York
In June 2020, the International Auditing and Assurance Standards Board (IAASB) released a summary of its June 15-19, 2020 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 15-19, 2020, the IAASB was updated regarding the status of the Technology Work Group’s (TWG) progress on the Workstream Plan. The Board was also asked for direction on whether certain considerations and comparisons may be included in future publications on the Technology Workstream Plan with respect to the impact on audit quality when using automated tools and techniques. The IAASB broadly supported the approach proposed by the TWG and the inclusion of explanatory text at the beginning of each TWG publication as it relates to the use of automated tools and techniques.
At its meeting on June 15-19, 2021, the IAASB was updated regarding the status of the Technology Work Group’s (TWG) progress on the Workstream Plan. The Board was also asked for direction on whether certain considerations and comparisons may be included in future publications on the Technology Workstream Plan with respect to the impact on audit quality when using automated tools and techniques. The IAASB broadly supported the approach proposed by the TWG and the inclusion of explanatory text at the beginning of each TWG publication as it relates to the use of automated tools and techniques.
At its meeting on June 15-19, 2020, the IAASB discussed the LCE Working Group’s recommendations for developing a separate standard for Audits of Less Complex Entities (LCEs) on the basis of overarching principles outlining how the separate standard could be developed. In its discussion, the Board highlighted the importance of the description of an LCE to help in developing the content of the separate standard. The Board also encouraged a more prescriptive definition for the application of the standard, although the Board recognized there would always be a level of judgment in making this determination. On this basis, the Board supported that the LCE Working Group commence development of the separate standard as well as prepare a related project proposal for approval at the December 2020 IAASB meeting.
At its meeting on June 15-19, 2020, the IAASB discussed the LCE Working Group’s recommendations for developing a separate standard for Audits of Less Complex Entities (LCEs) on the basis of overarching principles outlining how the separate standard could be developed. In its discussion, the Board highlighted the importance of the description of an LCE to help in developing the content of the separate standard. The Board also encouraged a more prescriptive definition for the application of the standard, although the Board recognized there would always be a level of judgment in making this determination. On this basis, the Board supported that the LCE Working Group commence development of the separate standard as well as prepare a related project proposal for approval at the December 2020 IAASB meeting.
At its meeting on June 15-19, 2020, the IAASB was updated by the ISQM 2 Task Force about the Task Force’s proposed revisions to the IESBA Code addressing the objectivity of EQRs. The Board agreed that the proposed revisions to the IESBA Code addressing the objectivity of appropriate reviewers align with the provisions relating to the objectivity of EQRs in proposed ISQM 2. The ISQM 2 Task Force will present a full draft of proposed ISQM 2 for IAASB approval via videoconference in September 2020.
At its meeting on June 15-19, 2020, the IAASB was updated by the ISQM 2 Task Force about the Task Force’s proposed revisions to the IESBA Code addressing the objectivity of EQRs. The Board agreed that the proposed revisions to the IESBA Code addressing the objectivity of appropriate reviewers align with the provisions relating to the objectivity of EQRs in proposed ISQM 2. The ISQM 2 Task Force will present a full draft of proposed ISQM 2 for IAASB approval via videoconference in September 2020.
At its meeting on June 15-19, 2020, the IAASB discussed amendments to proposed ISA 220 (Revised) to clarify how to treat component auditors that are not directly engaged by the firm. The ISA 220 Task Force will present a full draft of proposed ISA 220 (Revised) for IAASB approval via videoconference in September 2020.
At its meeting on June 15-19, 2020, the IAASB discussed amendments to proposed ISA 220 (Revised) to clarify how to treat component auditors that are not directly engaged by the firm. The ISA 220 Task Force will present a full draft of proposed ISA 220 (Revised) for IAASB approval via videoconference in September 2020.
At its meeting on June 15-19, 2020, the IAASB discussed revisions to certain areas of proposed ISQM 1, including the firm’s risk assessment process, resources, relevant ethical requirements, monitoring and remediation, and the evaluation of the system of quality management. The Board also discussed external communications, in particular the firm’s communication with those charged with governance when performing an audit of financial statements of a listed entity. The Board supported the proposals, and encouraged the ISQM 1 Task Force to further simplify the approach to human resources, in particular the application material explaining the firm and engagement team responsibilities in addressing the competence and capabilities of individuals assigned to the engagement team. The Board also provided varying comments on external communications, although was generally supportive of the direction proposed by the ISQM 1 Task Force. The ISQM 1 Task Force will present a full draft of proposed ISQM 1 for IAASB approval via videoconference in September 2020.
At its meeting on June 15-19, 2020, the IAASB discussed revisions to certain areas of proposed ISQM 1, including the firm’s risk assessment process, resources, relevant ethical requirements, monitoring and remediation, and the evaluation of the system of quality management. The Board also discussed external communications, in particular the firm’s communication with those charged with governance when performing an audit of financial statements of a listed entity. The Board supported the proposals, and encouraged the ISQM 1 Task Force to further simplify the approach to human resources, in particular the application material explaining the firm and engagement team responsibilities in addressing the competence and capabilities of individuals assigned to the engagement team. The Board also provided varying comments on external communications, although was generally supportive of the direction proposed by the ISQM 1 Task Force. The ISQM 1 Task Force will present a full draft of proposed ISQM 1 for IAASB approval via videoconference in September 2020.