Amendments to the ISAs/CASs with respect to the IESBA’s revised Definitions of Listed Entities and PIEs [ED]

The AASB com­ment pe­riod ends on September 16, 2022, and the IAASB comment period ends on Oc­to­ber 4, 2022 

Next Steps:

The IAASB and AASB will re­view the re­sponses to their Ex­po­sure Drafts in Q4/2022.

Last up­dated:

August 2022

Overview

At its meet­ing on March 14-18 and March 23, 2022, the IAASB discussed and approved a project proposal to undertake a narrow scope maintenance of standards project on listed entities and PIEs. This project sets out the IAASB’s actions to respond to recent revisions to the IESBA Code as a result of their project on the Definitions of Listed Entity and PIE.

The IAASB’s proposed actions include:

  • a limited number of targeted changes to the ISQMs and ISAs; and
  • developing an objective and guidelines to support the IAASB’s judgments in identifying specific matters for which differential requirements are appropriate in the ISQMs or ISAs.

In addition, the Board discussed initial proposals to amend ISA 700 (Revised) that would provide a mechanism for the firm to disclose whether it has applied the relevant ethical requirements for independence for certain entities, such as PIEs in the IESBA Code. The Board’s views will inform the Exposure Draft, which will be presented for discussion and approval at the June 2022 IAASB meeting.

For more in­for­ma­tion and up­dates on the this pro­ject, visit the IAASB’s pro­ject page

On July 6, 2022, the IAASB issued an Exposure Draft of 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. The proposed amendments will help operationalize recently approved changes to the IESBA International Code of Ethics for Professional Accountants (including International Independence Standards) related to listed and public interest entities. The changes to the IESBA Code require firms to publicly disclose when the independence requirements for public interest entities have been applied in an audit of financial statements. Comments are requested by October 4, 2022.

On August 9, 2022, the AASB issued its Exposure Draft of the same name. Comments are requested by September 16, 2022.

 

Other developments

August 2022

On August 9, 2022, the AASB issued its Exposure Draft of proposed narrow scope amendments to CAS 700 (Revised) and CAS 260 (Revised) in respect of the changes to the IESBA Code which require firms to publicly disclose when the independence requirements for public interest enti¬ties have been applied in an audit of financial statements. Comments are requested by September 16, 2022.

July 2022

On July 6, 2022, the IAASB issued an Exposure Draft of proposed narrow scope amendments to ISA 700 (Revised) and ISA 260 (Revised) in respect of the changes to the IESBA Code which require firms to publicly disclose when the independence requirements for public interest entities have been applied in an audit of financial statements. Comments are requested by October 4, 2022.

March 2022

At its meeting on March 14-18 and 23, 2022, the IAASB discussed and approved a project proposal to undertake a narrow scope maintenance of standards project on listed entity and PIE.

 

 

 

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