The objective of the publication titled “The jurisdictional journey towards globally comparable information for capital markets — Preview of the Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards” is to support jurisdictions by providing information as they design and plan their journey to the adoption of ISSB standards. It also aims at supporting transparency on the progress towards the provision of comparable information by describing and summarising jurisdictional approaches towards the adoption of ISSB standards.

Access the updated alignment dashboard prepared for the March 2024 IPSASB meeting on the IPSASB website.

The webcast explores the primary motives behind investors utilizing industry-specific data in their analysis and decision-making processes, as well as emphasizing the significance of industry-specific criteria within the ISSB Standards.

The educational material explains how entities can meet the requirement in IFRS S1 to disclose material information about all sustainability-related risks and opportunities that could reasonably be expected to affect an entity's cash flows, its access to finance or cost of capital over the short, medium or long term.

The educational material states that the SASB standards can be a useful source of guidance in applying IFRS S1 because they:

• are designed to provide investors, creditors and other lenders with information that is decision-useful and comparable with peers;
• are tailored to specific industries, allowing companies to quickly access guidance that is relevant to their business activities; and
• provide guidance on sustainability-related topics beyond climate, including human capital and nature.

Access the webcast  and educational material on the IFRS Foundation website.

Similar to his speech delivered in December 2023, Gensler once again highlighted the SEC's role in ensuring transparency and preventing fraud in AI-related disclosures, emphasizing the need for companies to provide accurate information about their AI usage and associated risks to investors.

Moreover, Gensler discussed the broader implications of AI in finance, highlighting its potential benefits in efficiency and user experience, as well as its challenges such as unexplainable decisions, biases, and inaccuracies. He warned against the systemic risks posed by the widespread adoption of AI models in financial institutions, citing concerns about herding behavior and network interconnectedness. He also stressed about the importance of accountability and responsible governance in deploying AI models, urging companies to implement appropriate safeguards and disclose material risks to investors.

Access Gary Gensler’s speech on the SEC’s website

This move comes in response to the critical role high-quality audits play in ensuring the smooth functioning of capital markets. Recent international corporate failures and significant accounting restatements have heightened scrutiny on all participants in the financial reporting system, emphasizing the importance of confidence in audits. As fraud remains a focal point, the IAASB seeks to strengthen auditor duties concerning fraud detection and prevention to better serve the public interest and bolster trust in financial reporting.

The changes will:

• clarify the auditor’s responsibilities about fraud in financial statement audits;
• strengthen the auditor’s procedures; and 
• include more detail about fraud in the auditor’s report. 

The proposed revisions are expected to significantly strengthen the IAASB’s standard on auditors’ responsibilities related to fraud by defining the expectations in relation to fraud, delineating more robust procedures, and increasing transparency about the auditors’ responsibilities and fraud-related procedures in the auditor’s report.

Access the explanatory memo on the IASSB’s website.

The proposed revisions define the expectations in relation to fraud, delineate more robust procedures, and increase transparency about the auditors’ responsibilities and fraud-related procedures in the auditor’s report.

Key Changes in the Proposed Revisions include:

• Clarified auditor responsibilities relating to fraud in an audit.
• Emphasized professional skepticism to ensure auditors remain alert to possible fraud and exercise professional skepticism throughout an audit.
• Strengthened identification and assessment of risks of material misstatement due to fraud.
• Clarified response to fraud or suspected fraud identified during the audit.
• Increased ongoing communication with management and those charged with governance about fraud.
• Increased transparency about auditors’ responsibilities and fraud-related procedures in the auditor’s report.
• Enhanced audit documentation requirements about fraud-related procedures.

Respondents are encouraged to share their insights using the response template by June 5, 2024.

Access the exposure draft and response template on IAASB’s website.

The proposed revisions define the expectations in relation to fraud, delineate more robust procedures, and increase transparency about the auditors’ responsibilities and fraud-related procedures in the auditor’s report.

Key Changes in the Proposed Revisions include:

• Clarified auditor responsibilities relating to fraud in an audit.
• Emphasized professional skepticism to ensure auditors remain alert to possible fraud and exercise professional skepticism throughout an audit.
• Strengthened identification and assessment of risks of material misstatement due to fraud.
• Clarified response to fraud or suspected fraud identified during the audit.
• Increased ongoing communication with management and those charged with governance about fraud.
• Increased transparency about auditors’ responsibilities and fraud-related procedures in the auditor’s report.
• Enhanced audit documentation requirements about fraud-related procedures.

Respondents are encouraged to share their insights using the response template by June 5, 2024.

Access the exposure draft and response template on IAASB’s website.

The new standard responds to investors' demand for better information about companies’ financial performance and will improve how company information is communicated in the financial statements. It will provide investors with enhanced clarity and depth for analyzing company performance, leading to well-informed investment decisions.

Access the webcast on the IFRS Foundation website.

Mr. Munter expressed concerns over the Public Company Accounting Oversight Board's (PCAOB) recent inspection findings. He highlighted a troubling increase in deficiencies, particularly regarding insufficient audit evidence, rising from 29% in 2020 to 40% in 2021 inspections. This trend, Mr. Munter emphasized, necessitates renewed commitment from the entire auditing profession to ensure investor protection.

He reminded auditors of their fundamental responsibility to investors, requiring objective judgment, rigorous skepticism, and prioritizing investor interests throughout the audit process. While acknowledging the dedication of most auditors, Mr. Munter stressed the need for renewed focus on delivering high-quality audits in line with the profession's mission.

Access the statement on the SEC’s website

The new standard responds to investors' demand for better information about companies’ financial performance and will improve how company information is communicated in the financial statements. It will provide investors with enhanced clarity and depth for analyzing company performance, leading to well-informed investment decisions.

Access the webcast on the IFRS Foundation website.