2023

SEC (US Securities and Exchange Commission) Image

SEC Approves PCAOB Standard on Auditor’s Use of Confirmation

Dec 04, 2023

On December 4, 2023, the Securities and Exchange Commission (SEC) released an order approving the PCAOB’s amendments related to the auditor’s use of confirmation, which were published in the Federal Register on October 17, 2023.

These amendments are intended to strengthen and modernize the requirements for the confirmation process by describing principles-based requirements for all methods of confirmation, including paper-based and electronic means of communications.

According to PCAOB’s Chair Erica Williams’s, “the new standard, which replaces a standard that had not been significantly updated in twenty years, is also a big step forward as the Board continues to execute its strategic goal of modernizing PCAOB standards.”

Access the order on SEC’s website.

US_SEC Image

SEC Chief Accountant Releases Statement on the Responsibilities of Lead Auditors When Other Auditors Are Involved

Mar 17, 2023

On March 17, 2023, the SEC Chief Accountant Paul Munter has released a statement on the responsibilities of lead auditors when high-quality audits involving other auditors are being conducted. Mr. Munter observed that it is the role of the lead auditor, and especially the lead engagement partner, “to ensure investor protections by safeguarding against engagement performance failures due to inadequate planning, supervision, and oversight of other auditors.”

Specific topics addressed in the statement include the following:

  • The impact of other auditors in a global audit.
  • Observations related to the use of other auditors.
  • The importance of quality controls when using the work of other auditors.
  • Roles of network firms.
  • Independence considerations for network-member firms.
  • Good practices for audit committees and issuers.

Re­view the full statement on the SEC's web­site.

AASB Image

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.

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