At its meeting on June 13-17, 2022, the IAASB discussed and approved an Exposure Draft (ED) for track 1 of its project on listed entity and PIE. The ED proposes narrow scope amendments to ISA 700 (Revised) and ISA 260 (Revised) as a result of the revisions to the IESBA Code that require a firm to publicly disclose when a firm has applied the independence requirements for PIEs. The Exposure Draft will be published in July 2022 for a  90-day public comment period. In December 2022 the PIE Task Force intends to present to the Board proposals for track 2 of the project on listed entity and PIE, including: (i) Whether the IAASB should adopt the IESBA definitions of “publicly traded entity” and PIE; (ii) The objective and guidelines for establishing differential requirements for certain entities in the ISQMs and ISAs; and (iii) Which entities the extant differential requirements for listed entities in the ISQMs and ISAs should apply to, using a case-by-case approach, and consequential considerations for the application and introductory material in these standards.

Review the summary, including the podcast, on the IAASB's Web site.

At its meeting on June 13-17, 2022, the IAASB discussed and broadly supported a draft of proposed ISA 500 (Revised) that reflected the changes made by the Audit Evidence Task Force based on the Board’s discussion in March 2022. Such changes included a separate requirement to obtain audit evidence about the accuracy and completeness of information intended to be used as audit evidence when those attributes are applicable in the circumstances. In progressing the draft standard, the Board suggested clarifications to emphasize that designing and performing audit procedures in an unbiased manner applies to both risk assessment procedures and further audit procedures. The Board also discussed clarifications in the application material to address the meaning of the term “information intended to be used as audit evidence,” given concerns about a disconnect with the wording used in the definition of audit evidence. The Audit Evidence Task Force will present an updated draft of proposed ISA 500 (Revised) for approval for public exposure at the September 2022 IAASB meeting, along with proposed conforming and consequential amendments to other ISAs.

Review the summary, including the podcast, on the IAASB's Web site.

At its meeting on June 13-17, 2022, the IAASB discussed and broadly supported the Going Concern Task Force’s initial views and recommendations for selected key issues identified in the project proposal for the revision of ISA 570 (Revised). This included proposals for the timeline over which the going concern assessment is made and for transparency about the auditor’s responsibilities and work related to going concern. In September 2022, the Going Concern Task Force intends to discuss with the Board certain other proposed actions in the project proposal such as risk identification and assessment, terminology, management’s assessment of going concern, and professional skepticism.

Review the summary, including the podcast, on the IAASB's Web site.

At its meeting on June 13-17, 2022, the IAASB discussed and broadly supported the changes in proposed ISA 240 (Revised) to emphasize the auditor’s responsibilities relating to fraud in an audit of financial statements and reduce the ambiguity between the inherent limitations of an audit and the auditor’s responsibilities for fraud. The Fraud Task Force will conduct outreach with users of financial statements in Q2/Q3 2022 relating to transparency in the auditor’s report and report back to the Board in September 2022. In December 2022, the Fraud Task Force will bring other additional topics as outlined in the project proposal for the Board to deliberate, in addition to advancing the areas previously discussed by the Board.

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At its meeting on June 13-17, 2022, the IAASB discussed key matters identified from the feedback received on the Exposure Draft. The Board agreed that the project to develop a separate standard for audits of LCEs should continue, while acknowledging concerns from respondents that did not support the project. The Board supported the LCE Task Force’s direction to better describe the scope of the draft standard and provided input on the description of a “typical LCE” and how that may be incorporated into the Authority (Part A) of the draft standard. The Board provided direction on how revisions could be made to address respondents’ concerns around further differentiating the ED-ISA for LCE from the ISAs (while still obtaining reasonable assurance) and the sufficiency of Essential Explanatory Material in the proposed standard. The Board also supported the inclusion of procedures for group audits in the scope of the draft standard and provided direction on the type of group audits that should be in scope and how such requirements may be presented. The LCE Task Force will continue to analyze responses to the ED-ISA for LCE and commence developing revised drafting in priority areas. In September 2022, the LCE Task Force plans to bring to the Board for discussion the revised Authority of the draft standard, proposed content and requirements addressing group audits, along with other targeted topics.

Review the summary, including the podcast, on the IAASB's Web site.