The updated IESBA Code mandates firms to publicly reveal their application of independence requirements for public interest entities in financial statement audits. The IAASB's revisions establish a concise and practical framework for fulfilling this obligation, facilitating effective communication in the auditor's report and with governance entities.

During the formulation of these changes, the IAASB closely collaborated and coordinated with the IESBA, ensuring alignment between crucial concepts in both organizations' standards to the best possible extent.

Review the amendments on the IAASB website.

The ISA for LCE is a standalone global auditing standard designed specifically for smaller and less complex businesses and organizations. Built on the foundation of the International Standards on Auditing (ISAs), audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance. The standard is effective for audits beginning on or after December 15, 2025, for jurisdictions that adopt or permit its use.

Released alongside the ISA for LCE are a Basis for Conclusions, which details feedback from the public consultation period, a high-level fact sheet, and a frequently asked questions document. Additional materials to help jurisdictions navigate adoption will be issued in 2024, including supplementary guidance, a fact sheet on adoption, and a first-time implementation guide.

In May 2023, in its comment letter to the IAASB, the Auditing and Assurance Standards Board (AASB) indicated that it will continue to monitor and provide input to the IAASB as it works towards providing solutions in this area.

Review the materials  and the comment letter on the IAASB website.

While not unique to ATT, questions on these topics have become more prevalent with the increasing use of ATT, which enable analyzing data sets with large volumes of information.

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

Group audits were not included in the scope of the original Exposure Draft of the ISA for LCE. Given stakeholder feedback, the IAASB reconsidered its decision to exclude group audits and developed proposals that address audits of less complex groups.

With the inclusion of group audits, the IAASB has proposed changes to the Authority of the proposed ISA for LCE. For example, the IAASB removed the prohibition on using the standard when the audit is a group audit unless component auditors are involved, other than in limited circumstances in which a physical presence is needed for a specific audit procedure for the group audit (e.g., for attending a physical inventory count or inspecting physical assets).

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

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.

Ms. Corden is a partner with Deloitte Canada who is responsible for leading audit methodology, policies and guidance, including the firm's ISQM 1 implementation.

Review the press release on the IAASB's website.

The FAQ compilation addresses a variety of questions, including how the concept of materiality applies to sustainability reporting and assurance; the definition of double materiality; and how an assurance practitioner considers an organization’s “materiality process” during a sustainability assurance engagement, among other questions and answers.

The comment period for proposed ISSA 5000 is open until December 1, 2023. To promote broad and diverse participation in the ongoing public consultation, the IAASB has developed a stakeholder survey, which may be especially useful for stakeholders wishing to share less technical or overall feedback, and a response template.

Access the FAQ on the IAASB website.

This MoU provides a framework for expanding the cooperation between the IBA and IFAC, with a particular focus on anti-corruption and how the professions can work more closely together in the fight against money-laundering and economic crime., with key stakeholders such as the United Nations and Financial Action Task Force. Other areas of cooperation include maintaining the reputations and integrity of the accountancy and legal professions; ensuring that initiatives to regulate both professions are proportionate and fit-for-purpose; and enhancing the strength of the IBA and IFAC’s collective voice on global policy issues so that the legal and accountancy professions are in the best position to serve the public interest.

Access the news release on the IFAC website.

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.

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.