2023

All - Deloitte Image
CAQ Image

CAQ and Deloitte Issue Report on Audit Committee Practices

Jan 13, 2023

On January 13, 2023, in collaboration with Deloitte’s Center for Board Effectiveness, the Center for Audit Quality (CAQ) issued "Audit Committee Practices Report: Priorities and Committee Composition". The report is intended to provide insight into shifting priorities as well as trends and practices related to audit committee composition.

Review the press release and report on the CAQ’s website.

CAQ Image

CAQ Issues Publication on the Auditor’s Role Related to an SEC Registrant’s Reporting of Climate-Related Information

Mar 20, 2023

The Center for Audit Quality (CAQ) has released a publication, The Role of the Auditor in Climate-Related Information. The CAQ’s objectives in releasing the publication are “to provide public company auditors with insight into the significant growing demand for reliable climate-related information and to highlight the critical role that auditors can play in [an SEC] registrant’s reporting of climate-related information.”

Re­view the  doc­u­ment on the CAQ's web­site.

CAQ Image

CAQ’s organizes sign-on letter addressing concerns regarding PCAOB’s Proposed Auditing Standard on NOCLAR

Jul 26, 2023

On July 26, 2023, the Center for Audit Quality (CAQ) published a “sign-on letter” addressing the concerns that audit committees have about the PCAOB’s proposed new auditing standard , AS 2405, A Company’s Noncompliance with Laws and Regulations, or “NOCLAR” for short. The CAQ will submit this sign-on letter, on behalf of audit committee members.

The CAQ believes that audit committee members should speak out on this topic to let the PCAOB know:

  1. Any change should keep the auditor focused on NOCLAR that could materially impact the financial statements, such as material penalties or loss contingencies.
  2. Any requirement of the auditor should be risk-based and consider the role the company’s compliance program plays in detecting NOCLAR that could be material to the audited financial statements.

Comments on the proposal are due by August 7, 2023.

Access the sign-on letter on CAQ’s website and the proposal on the PCAOB website.

CPAB Image

CPAB released 2023 Interim Inspection results in Audit Quality Insights report

Oct 12, 2023

On October 12, 2023, The Canadian Public Accountability Board (CPAB) released its interim public report on its 2023 audit quality assessments. The report provides a snapshot of themes and insights from the 2023 audit quality assessment work to date.

In its preliminary 2023 regulatory assessments, significant findings were identified in seven out of the 53 files inspected at the four largest firms, constituting 13 percent of the total. This marked a slightly higher rate of findings compared to the previous year. The detailed inspection results for other firms, both annually and non-annually inspected, will be incorporated into their comprehensive annual report, which will be released in March 2024.

The interim report shed light on various aspects, including the progress made in implementing the new Canadian quality management standards. It offered insights into their initiatives concerning climate, fraud detection, the integration of artificial intelligence in audits, and public disclosures. Additionally, the report outlined crucial considerations for audit committees as they commenced year-end audit preparations.

Review the report on the CPAB website.

FRC (United Kingdom Financial Reporting Council) Image

FRC publishes thematic review findings on fair value measurement

Jun 16, 2023

On June 16, 2023, the UK Financial Reporting Council (FRC) has published a thematic review on IFRS 13 'Fair Value Measurement'.

The FRC’s review highlights:

  • Fair value measurements should use market participants’ rather than the company’s own assumptions.
  • There is scope for improvement of the disclosures provided by many companies, especially regarding reporting about the valuation approach, underlying assumptions, management judgement and estimation uncertainty.
  • Companies should consider using specialist third party advice when valuing a material item and where there is no internal expertise.

Re­ad the full review on the Financial Reporting Council website.

IAASB - Assurance Image

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.

IAASB - Assurance Image

IAASB begins work on global standards for ESG assurance

Jan 16, 2023

On January 16, 2023, the International Auditing and Assurance Standards Board (IAASB) published a public consultation for its 2024-27 proposed strategy and work plan, with it wishing to develop an overarching standard for assurance on sustainability reporting.

The new globally accepted standards aim to improve investor confidence and “reduce the risk of material misstatements”.

Review the press release and article on the IAASB's website.

IAASB - Assurance Image

IAASB consults on proposed global sustainability assurance standard

Aug 03, 2023

On August 3, 2023, the International Auditing and Assurance Standards Board (IAASB) issued a proposed International Standard on Sustainability Assurance (ISSA) 5000 “General Requirements for Sustainability Assurance Engagements”.

The proposed ISSA 5000 is a principles-based, overarching standard suitable for both limited and reasonable assurance engagements on sustainability information reported across any sustainability topic. The IAASB drafted the standard to work with sustainability information prepared under any suitable reporting framework. The proposed standard is profession agnostic, supporting its use by both professional accountant and non-accountant assurance practitioners.

Comments on the proposed ISSA are requested by December 1, 2023.

Re­view the exposure draft and the additional supporting material on IAASB’s website.

IAASB - Assurance Image

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.

IAASB - Assurance Image

IAASB digital technology market scan: Robotic process automation

Jan 12, 2023

On January 12, 2023, the International Auditing and Assurance Standards Board (IAASB) released their publication "Market Scan", where they explore Robotic Process Automation, a technology used for executing repetitive tasks that has applications across the audit process, from data transformation to workpaper creation, as well as potential for forming part of an audited entity’s IT environment.

This publication covers:

  • What is Robotic Process Automation and why is it important?
  • The latest developments
  • What this might mean for the IAASB

Review the publication on the IAASB's website.

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