IAASB Digital Technology Market Scan: Internet of Things

May 24, 2023

On May 24, 2023, the IAASB released a Digital Technology market scan exploring the Internet of Things Tecnology, focusing on Networks for Asset Monitoring and Data Generation, a technology that enables real time tracking, managing and monitoring of business processes and assets.

Topics covered include:

  • What is the Internet of Things? Why is it important?
  • The latest developments
  • What this might mean for the IAASB

Access the market scan on the IAASB website.

The AASB establishes a Sustainability Assurance Committee

May 16, 2023

On May 16, 2023, in response to the IAASB’s approval of the project proposal for the development of an overarching sustainability assurance standard, ISSA 5000, the AASB has established the Sustainability Assurance Committee to enhance its technical expertise in this area and support the Board’s sustainability assurance projects.

The roles and responsibilities of the Sustainability Assurance Committee are to:

  • understand current and explore future Canadian trends, practices, and challenges related to sustainability assurance;
  • review the IAASB agenda materials to determine the impact and issues relevant to Canada, and provide input to the AASB for its consideration;
  • assist the AASB in its future Canadian sustainability assurance activities and standard setting; and
  • assist the AASB with external outreach and collaboration activities with other Canadian Standard-setting Boards (AcSB, PSAB, and CSSB).

Access the details of this Committee on the FRAS Canada website.

AASB Response – Proposed Narrow Scope Amendments to ISA 700 (Revised) and ISA 260 (Revised)

May 09, 2023

On May 9, 2023, the Auditing and Assurance Standard Board submitted a comment letter responding to the IAASB’s Exposure Draft, Proposed Narrow Scope Amendments to ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements and ISA 260 (Revised), Communication with Those Charged with Governance.

Here’s an excerpt from the comments:

“We support the proposed amendments to ISA 700 (Revised). We agree that the revisions provide a clear mechanism to operationalize the IESBA’s transparency requirement, while recognizing that some jurisdictions, like Canada, adopt the ISAs but apply ethical requirements different from the IESBA Code.

However, we believe paragraph 17 of ISA 260 (Revised) should be amended to include an explicit requirement for the auditor to communicate with those charged with governance which independence requirements were applied. We believe those charged with governance should be fully informed regarding the firm’s independence, including which independence requirements were applied. We are concerned that proposed paragraph A29 of ISA 260 (Revised) may not, in all circumstances, achieve this desired transparency.

” Finally, we are concerned that the IAASB has other projects underway, in addition to this project, that may result in multiple changes to the auditor’s report. These changes, in relatively quick succession, could create implementation challenges and reduce the understandability of the auditor’s report. In considering any future revisions to the auditor’s report, we strongly urge the IAASB to ensure such revisions are coordinated to mitigate the risk of these potential unintended consequences.

Access the AASB comments on the IAASB website.

AASB Response – Part 10, Audits of Group Financial Statements of the Proposed ISA for Audits of Financial Statements of Less Complex Entities

May 01, 2023

On May 1, 2023, the Canadian Auditing and Assurance Standards Board (AASB) submitted a comment letter responding to the IAASB’s Exposure Draft, Proposed Part 10, Audits of Group Financial Statements of the Proposed ISA for Audits of Financial Statements of Less Complex Entities (LCE). The IAASB plans to approve the final ISA for LCE before the end of the year.

Here’s an excerpt from the comments:

“We are pleased with the IAASB’s proposal to include audits of group financial statements (Group audits) in the scope of the proposed ISA for LCE. Not all group audits exhibit characteristics of complexity. As such, audits of less complex groups should be within the scope of the proposed ISA for LCE.

However, we have significant concerns with the proposed “bright line” exclusion of the use of the proposed ISA for LCE when component auditors are involved. We believe that the proposed prohibition could increase the complexity of the auditor’s decision-making process regarding the use of the proposed ISA for LCE. Consequently, we believe the prohibition will considerably limit the application of the proposed ISA for LCE in Canada and will be a significant factor as we assess whether the proposed ISA for LCE meets the needs of Canadians.

As a result, we recommend that the Authority not include a prohibition when component auditors are involved. In our view, the qualitative characteristics set out in the Authority that describe the typical LCE, in addition to the group-specific qualitative characteristics set out in ED-ISA for LCE Part 10, should be adequate for the purpose of determining the appropriate use of the proposed ISA for LCE for group audits.”

Access the AASB comments on the IAASB website.


IAASB Opens Public Consultation for Its Revised Going Concern Standard

Apr 26, 2023

On April 26, 2023, the International Auditing and Assurance Standards Board (IAASB) issued proposed revisions to its current standard on going concern, International Standard on Auditing 570 (Revised), Going Concern.

The proposed changes aim to:

  • Promote consistent practice and behavior and facilitate effective responses to identified risks of material misstatement related to going concern;
  • Strengthen the auditor’s evaluation of management’s assessment of going concern, including reinforcing the importance, throughout the audit, of the appropriate exercise of professional skepticism; and
  • Enhance transparency with respect to the auditor’s responsibilities and work related to going concern where appropriate, including strengthening communications and reporting requirements.

The IAASB invites all stakeholders to comment on the proposed revisions via the IAASB website. Comments are requested by August 24, 2023.

Re­view the news release on IAASB’s website.

IAASB advances timeline for consultation for proposal on sustainability assurance

Apr 24, 2023

On April 24, 2023, the International Auditing and Assurance Standards Board (IAASB) announced that, at its April 2023 meeting, it had confirmed its intention to advance the consultation on its proposed new standard for sustainability assurance, International Standard on Sustainability AssuranceTM (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.

Subject to the expected IAASB approval of the Exposure Draft in June 2023, stakeholders can now expect the public consultation on the proposed standard to open in the latter part of July or early August 2023 and extend into December 2023. The consultation was originally scheduled to commence in October 2023.

The advanced consultation will support two objectives. First, the earlier publication, accompanied by a comprehensive and global outreach strategy, will enable the IAASB to gain broad and early input into the development of ISSA 5000. Second, the advanced consultation period will better ensure the completion of the final standard in 2024. In a recent report, the International Organization of Securities Commissions (IOSCO) highlighted the importance of having ISSA 5000 developed in accordance with due process and ready in 2024 to support a global baseline for sustainability reporting and assurance standards that meets the public interest.

Re­view the press release  on IAASB’s website.

Interview with Tom Seidenstein, Chair of the IAASB, regarding IAASB's current activities and future visions

Apr 21, 2023

On April 10-13, 2023, Tom Seidenstein, the IAASB Chair, visited Japan. The Japanese Institute of Certified Public Accountants (JICPA) Chairman and President, Tetsuya Mogi, interviewed Mr. Seidenstein.

Here are some interesting excerpts from Mr. Seiderstein’s comments on the topic of sustainability assurance:

“The IAASB is dedicating significant energy to have a sustainability assurance standard for limited and reasonable assurance engagements complete by the end of 2024. A global baseline of high-quality assurance standards, like reporting standards, should greatly improve confidence in sustainability reporting. Our ultimate aim must be achieving a level of quality and consistency for assurance, similar to financial audits, that delivers trust and confidence in what companies report.”

“In developing our proposed new standard, now titled International Standard for Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, we are drawing on those concepts and other relevant audit concepts to provide a comprehensive standard. When final, the standard will allow a practitioner to do an end-to-end engagement, will work with multiple reporting frameworks (such as that of the International Sustainability Standards Board, the Global Reporting Initiative, and others), and will be practitioner agnostic --that is, both audit firms and non-audit firms could apply the standard.”

“We also know that time is of the essence as demand for the standard is growing. We are making solid progress on its development and will issue a final standard by December 2024. We will publish the draft standard for public comment in Q3 of this year and then launch an intensive outreach campaign across the global to a full range of stakeholders to ensure we have feedback and input from a range of” those who will use the standard, and those who will rely on the assurance engagement's conclusion.”

Re­view the full interview  on JICPA’s website.

Appointments, Reappointments and Retirements – AASOC

Mar 30, 2023

On March 30, 2023, the Au­dit­ing and As­sur­ance Over­sight Com­mit­tee (AASOC) announced its appointments, reappointments and retirements.

Reappointed for one-year terms ending on March 31, 2024: 

  • Ian Bandeen, LL.B, BCL, Chairman of the Advisory Board, Select Vantage Inc.
  • Donna Bovolaneas, FCPA, FCA, retired after a long and diverse career focused primarily on financial reporting and audit quality

Appointed as a new member for a three-year term ending on March 31, 2026:

  • Anne-Marie Ethier, FCPA, LPA, Audit Partner and member of the Board of Deloitte Canada and Chile, Deloitte LLP

Retired as a member on March 31, 2023: 

  • Sheila Filion, CPA, CA, an assurance partner with Virtus Group Chartered Professional Accountants and Business Advisors LLP in Saskatchewan
  • Johnny Walker, LL.B., CPA, CA, CBV, an investment banker and finance professional and has held senior management roles with global investment banks working in Canada, the U.S., and internationally

For fur­ther de­tails re­fer to press release.


IESBA and IAASB highlight commitment to deliver on recommendations in new IOSCO report on a global assurance framework for sustainability-related corporate reporting

Mar 28, 2023

On March 28, 2023, The International Ethics Standards Board for Accountants (IESBA) and International Auditing and Assurance Standards Board (IAASB) welcomed the report released by the International Organization of Securities Commissions (IOSCO) on developing a global assurance framework for sustainability-related corporate reporting. The IOSCO report reflects extensive research and feedback from key stakeholders. The report calls for timely development of ethics and assurance standards for sustainability reporting by the IESBA and the IAASB, respectively.

The IESBA and the IAASB have responded to growing demand for high-quality assurance over sustainability-related information to enhance the reliability of corporate reporting by prioritizing their projects to develop relevant and complementary standards. Both the IESBA and IAASB will issue public consultations later this year on standards for sustainability ethics and assurance, respectively. Both boards plan to finalize their respective standards in 2024. IOSCO called for widespread outreach to ensure the standards meet the needs of users and benefit from diverse stakeholder input, among other recommendations. Both boards emphasize their commitment to address key considerations and recommendations presented in the IOSCO report.

Re­view the press re­lease and the IOSCO report on IAASB's website.

PCAOB proposes modernization of its standards addressing core auditing principles and responsibilities

Mar 28, 2023

On March 28, 2023, The Public Company Accounting Oversight Board (PCAOB) issued for public comment a proposed new standard, AS 1000, General Responsibilities of the Auditor in Conducting an Audit.

The proposal would (1) modernize a group of standards that the PCAOB adopted on an interim basis in 2003 and (2) address core auditing principles and responsibilities, such as “reasonable assurance, professional judgment, due professional care, and professional skepticism. Comments on the proposed rule are due by May 30, 2023.

For more information, see the press release and the proposed new standard on the PCAOB’s website.


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