Assurance

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IFAC Releases New Implementation Tool for Auditors

Apr 05, 2022

On April 5, 2022, the International Federation of Accountants (IFAC) today released a new resource, Auditing Accounting Estimates: ISA 540 (Revised) Implementation Tool. It will help auditors implement the International Auditing and Assurance Standards Board’s International Standard on Auditing 540 (Revised), Auditing Accounting Estimates and Related Disclosures by providing an overview of steps practitioners could take and related considerations.

For entities of all types and sizes, management has to make accounting estimates, which have estimation uncertainty and may also be complex. Making these estimates involves selecting and applying a method using assumptions and data, which requires judgment. The nature, timing and extent of the audit procedures required will vary in relation to the estimation uncertainty and the assessment of the related risks of material misstatement.  

This implementation tool contains “what”, “why” and “how” suggestions. These are not all-encompassing and more or different considerations may apply depending on the circumstances of the engagement. The implementation tool also works in conjunction with the IAASB’s previously published ISA 540 (Revised) flowcharts showing the requirements flow. The choice of specific procedures an auditor decides to perform to meet the requirements of ISA 540 (Revised) and other relevant ISAs is a matter of professional judgement. This implementation tool does not replace the need to read ISA 540 (Revised), including its application and other explanatory material.

Review the press release and resource on the IFAC's website.

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PCAOB issues publication on auditing considerations related to the invasion of Ukraine

Mar 31, 2022

On March 31, 2022, the Public Company Accounting Oversight Board (PCAOB) has issued Spotlight, “Auditing Considerations Related to the Invasion of Ukraine”. The publication highlights “important considerations for auditors of issuers and broker-dealers as they plan and conduct audits in this evolving environment.”

Re­view the press release and Spot­light pub­li­ca­tion on the PCAOB's web­site.

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Appointments, Reappointments, and Retirements – AASOC

Mar 29, 2022

On March 29, 2022, the Auditing and Assurance Standards Oversight Council (AASOC) announced the reappointment of Caroline Nadeau, Deloitte Professional Practice Director, to the AASB for a two-year term ending on March 31, 2024.

Review the complete list on the AASOC's website.

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New implementation guide available for quality management for audits of financial statements

Feb 17, 2022

On February 17, 2022, the International Auditing and Assurance Standards Board (IAASB) released "First-time Implementation Guide for ISA 220, Quality Management for an Audit of Financial Statements". The guide will help stakeholders understand the standard and properly implement its requirements as intended.

Alongside the previously released implementation guides for International Standard on Quality Management (ISQM) 1 and 2, the new Guide will help stakeholders implement the IAASB’s suite of quality management standards. The suite of standards was released in December 2020 and come into effect on December 15, 2022.

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

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Interview with IAASB Chair on Audit’s Role in various issues including combatting fraud, addressing ESG and new technologies and more

Jan 27, 2022

On January 27, 2022, the International Auditing and Assurance Standards Board (IAASB) posted an article relating to a Compliance Week interview of IAASB Chair, Tom Seidenstein, in which he discusses audit’s role in various issues including combatting fraud, addressing ESG and new technologies, audits of less complex entities, and more.

Re­view the press re­lease on the IAASB's web­site.

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CAQ Issues Publication on Audit Committee Practices

Jan 26, 2022

In January 2022, the Center for Audit Quality (CAQ) and Deloitte’s Center for Board Effectiveness released a publication "Audit Committee Practices Report: Common Threads Across Audit Committees".

The publication provides insight into important current issues for audit committees and leading practices for executing their responsibilities effectively.

Review the publication on the CAQ's website.

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IAASB Releases Conforming and Consequential Amendments Aligning Existing IAASB Standards to New, Revised Quality Management Standards

Jan 19, 2022

On January 19, 2022, the International Auditing and Assurance Standards Board (IAASB) released further conforming and consequential amendments to the IAASB’s standards resulting from the new and revised quality management standards, which were released in December 2020.

The conforming amendments remove actual or perceived inconsistencies between the IAASB’s suite of standards and the quality management standards. This allows the IAASB’s full suite of standards operate in conjunction with each other and without confusion, which is especially crucial given the importance of firm-level quality management to the consistent performance of quality engagements.

The standards covered do not include the International Standards on Auditing (ISAs). Conforming and consequential amendments to the ISAs were finalized and released in December 2020 alongside the quality management standards.

The conforming amendments to the IAASB’s International Standards become effective as of December 15, 2022.

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

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2022-2023 IAASB Work Plan Approved Pending PIOB Approval

Jan 11, 2022

On January 11, 2022, the International Auditing and Assurance Standards Board (IAASB) approved a new work plan, "A Public Interest Focus in Uncertain Times", during its December 2021 meeting. Pending approval by the Public Interest Oversight Board (PIOB), anticipated in early April 2022, the work plan will guide the IAASB’s work in 2022 and 2023, reflecting the IAASB Strategy for 2020-2023.

Sustainability and environmental, social, and governance (ESG) assurance are a prominent addition to the new work plan and will see increased time and resourcing for 2022–2023. In addition, the new work plan highlights candidate topics in the Audit and Review space (e.g., responding to assessed risks of material misstatement and the impact of technology on various standards) that the IAASB will consider for a further project to commence in 2023. A key focus will remain the progression and completion of projects underway at the start of 2022, including audits of financial statements of less complex entities, audit evidence, going concern, and fraud.

Review the press release and new work plan on the IAASB's website.

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AASB issues FAQs on Extended External Reporting (EER)

Jan 07, 2022

On January 7, 2022, the Auditing and Assurance Standards Board (AASB) issued FAQs regarding assurance in respect of sustainability and environmental, social and governance. Check out these FAQs for all the information you need.

Re­view the FAQs on the AASB's web­site.

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Potential approach to revisions to PCAOB quality control standards

Dec 17, 2019

On December 17, 2019, the Public Company Accounting Oversight Board (PCAOB) issued a concept release seeking public comment on a potential approach to revising the PCAOB’s quality control standards.

This potential approach is based on the proposed international standard on quality management, ISQM 1, with certain differences as appropriate for firms that are subject to PCAOB standards and rules.

Review the concept release on the PCAOB's website.

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