News

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SEC Approves the PCAOB’s Updated Standard on Requirements Related to the Lead Auditor’s Use of Other Auditors

Aug 15, 2022

On August 12, 2022, the Securities Exchange Commission (the SEC) approved the Public Company Accounting Oversight Board’s (PCAOB) updated standards for audits that involve multiple auditing firms. The amended standards strengthen the requirements for lead auditors who supervise other auditors in an audit, helping to enhance audit quality and protect investors.

The PCAOB’s updated standards make enhancements across two broad areas. First, the amended standards specify certain procedures for lead auditors to perform when supervising other auditors. Second, they require lead auditors to prioritize their supervisory activities around higher-risk areas in the audit.

Re­view the SEC’s press re­lease  on the SEC’s website and the PCAOB’s Release No. 2022-002Planning and Supervision of Audits Involving Other Auditors and Dividing Responsibility for the Audit With Another Accounting Firm, on the PCAOB's web­site.

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AcSOC and AASOC comment on the ISSB’s two Exposure Drafts

Aug 15, 2022

On August 15, 2022, the Ac­count­ing Stan­dards Over­sight Coun­cil (Ac­SOC) and the Au­dit­ing and As­sur­ance Stan­dards Over­sight Coun­cil (AASOC) posted copies of their comment letters on the International Sustainability Standards Board’s (ISSB’s) two Exposure Drafts.

The AcSOC and AASOC formulated their response to the ISSB’s “General Sustainability-related Disclosures” Exposure Draft, using feedback gathered from an extensive cross-section of Canadian stakeholders through various forums. Read their comment letter for Canada’s response to the Exposure Draft which includes feedback to issues such as: the overall approach to sustainability-related risks and opportunities disclosure, objectives and definition of sustainability-related financial information, materiality, global baseline, frequency of reporting, and more.

The AcSOC and AASOC formulated their response to the ISSB’s “Climate-related Disclosures” Exposure Draft, using feedback gathered from an extensive cross-section of Canadian stakeholders through various forums. Read their comment letter for Canada’s response to the proposed objective of the Exposure Draft, requirements for identifying climate-related risks and opportunities, scenario analysis, transition plans and carbon offsets and more.

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IESBA Meeting Highlights: June 2022 Meeting

Aug 15, 2022

In August 2022, the In­ter­na­tional Ethics Stan­dards Board for Ac­coun­tants (IESBA) released the high­lights sum­mary of its vir­tual meet­ings held on June 6-8, 2022.

The Agenda items in­cluded:

  • Sustainability
  • Rollout of Revised Public Interest Entity (PIE) Definition
  • IFAC Panel on Accounting Education
  • Tax Planning & Related Services
  • Emerging Issues and Outreach Committee (EIOC)
  • IAASB-IESBA Coordination
  • Technology Fact Finding and Thought Leadership
  • Engagement Team - Group Audits Independence

Re­view the high­lights sum­mary and pod­cast on the IESBA's web­site.

 

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IASB publishes a short video on the results of its Agenda Consultation

Aug 10, 2022

On July 29, 2022, the International Accounting Standards Board (IASB) concluded its third agenda consultation by releasing a feedback statement. In a video now released, IASB Chair Andreas Barckow discusses the reasons for the IASB’s decisions as result of the agenda consultation and how the IASB responded to the extensive feedback from its diverse stakeholders.

Please click to access the video (approx. 4 minutes) on YouTube. To review the feedback statement click here.

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AASB Exposure Draft issued: Amendments to the CASs with respect to the IESBA’s Revised Definitions of Listed Entities and PIEs

Aug 09, 2022

On August 9, 2022, the Auditing and Assurance Standards Board (AASB) issued an Exposure Draft of “Proposed Narrow-scope Amendments to CAS 700, Forming and Opinion and Reporting on Financial Statements, and CAS 260, Communication with Those Charged with Governance, 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 Public Interest Entities”. Comments to the AASB must be received by September 16, 2022.

The Exposure Draft is similar to the one of the same name issued by the IAASB on July 6, 2022 relating to changes to the ISAs for which comments are due by October 4, 2022.

Re­view the press re­lease and Exposure Draft on the AASB's web­site.

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CPAB Responds to the ISSB’s Exposure Drafts

Aug 08, 2022

On August 8, 2022, the Cana­dian Pub­lic Ac­count­abil­ity Board (CPAB) posted a copy of its response letter in respect of the ISSB’s Exposure Drafts, “General Requirements for Disclosure of Sustainability‐related Financial Information” and “Climate‐related Disclosures”.

CPAB notes that it is supportive of the ongoing work of the ISSB to deliver a comprehensive global baseline of sustainability‐related disclosure standards and the overall objective to require entities to disclose information about significant sustainability‐related risks and opportunities. The reliability of sustainability‐related reporting is important and CPAB supports moving toward assurance requirements for certain of these disclosures. As assurance providers and regulators begin to encounter sustainability‐related disclosures more frequently, CPAB anticipates they may face some challenges in determining whether the entity has complied with the proposals the ISSB has outlined. These challenges are discussed in CPAB’s response.

Re­view the response letter on the CPAB’s web­site.

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ISSB receives global response on proposed sustainability disclosure standards

Aug 05, 2022

On August 5, 2022, the International Sustainability Standards Board (ISSB) issued a press release advising that it has received more than 1,300 comment letters on its two proposed sustainability disclosure standards.

The ISSB has received more than 600 responses to its draft Climate disclosure standard and close to 700 responses to its draft General Requirements disclosure standard. During the 120-day comment period, ISSB representatives participated in more than 400 outreach events, engaging with thousands of stakeholders globally.

A preliminary review of the comment letters confirms feedback originating from jurisdictions spanning six continents. Comments came from a range of stakeholder groups including academics; accountancy bodies and audit firms; investors; preparers; public interest bodies; regulators; and standard-setters.

In accordance with IFRS Foundation's due process, the ISSB will now assess and discuss the comments in its Board meetings. All responses to the consultations are available on the comment letter pages of the projects.

Re­view the press re­lease on the IFRS Foun­da­tion's web­site.

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IAASB: Quality Management Implementation Resources available

Aug 02, 2022

The IAASB has issued several resources to assist practitioners in the first-time implementation of its new and revised quality management standards. These include guides for ISQM 1, ISQM 2 and ISA 220 (Revised), and a definition of an engagement team fact sheet.

Refer to the IAASB’s focus area web page for these and other resources.

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Learn more about the IAASB’s new and revised quality management standards with two on-demand video panel discussions from IFAC

Aug 02, 2022

In order to support implementation and help small- and medium-sized practices (SMPs) understand, navigate and apply the revised standards, IFAC in collaboration with the Forum of Firms held two video panel discussions. These focus on providing an overview of International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, how firms are planning its implementation, and sharing practical examples, tips and suggested good practices.

These videos are available in English; translated transcripts are also available in Spanish and French and consist of:

  • ISQM 1: Getting Ready for the New Risk-Based Approach – a discussion of the standard and the shift in mindset needed to apply the new risk-based approach.
  • ISQM 1: Early Lessons Learned and Next Steps - a discussion on how to get started on implementation and tips and best practices.

Re­view the press re­lease and videos on IFAC’s web­site.

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IAASB issues new FAQ Publication for Reporting Going Concern Matters in the Auditor’s Report

Aug 01, 2022

On August 1, 2022, the IAASB issued a non-authoritative publication to address some of the common questions related to reporting going concern matters in the auditor’s report. Specifically, the publication focuses on the use of and interrelationship of the Material Uncertainty Related to Going Concern and Key Audit Matters sections, and the Emphasis of Matter paragraphs, in an auditor’s report prepared in accordance with the International Standards on Auditing (ISAs).

The FAQ publication does not amend or override the International Standards on Auditing, the texts of which alone are authoritative. Reading the publication is not a substitute for reading the ISAs.

For further information, refer the IAASB’s press release and FAQ publication.

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