| IAASB Approves Revised Group Audits Standard
In its December 2021 meeting, the IAASB unanimously approved ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) as a final standard.
Among other matters, the standard:
- Introduces a risk-based framework for planning and performing a group audit engagement;
- Clarifies and reinforces the linkages to other standards, including standards dealing with quality management at the engagement level and identifying and assessing the risks of material misstatement; and
- Includes enhanced requirements and application material related to the scope of the standard, restrictions on access to people and information, materiality and documentation.
The Board will formally release the standard in April 2022 after confirmation is received from the Public Interest Oversight Board that due process was followed. The revised standard will be effective for periods beginning on or after December 15, 2023. |
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Last Chance to Provide Views on the Proposed Standard for Less Complex Entities
Since October 2021, the IAASB has undertaken extensive outreach on its Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities with the objective of collecting and encouraging feedback on the exposure draft from all stakeholders with an interest in audits of less complex entities. The outreach plan has included global and regionally focused events and activities designed to raise awareness, and solicit feedback from those that are likely to use or be affected by the proposed standard. Representatives from over 70 different jurisdictions have attended these events to learn more and provide their views, and the IAASB is appreciative to all those that have participated.
There are still opportunities to provide comments, either through submitting a letter to the exposure draft in writing by January 31, 2022, or completing the IFAC-IAASB survey by January 14, 2022.
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Enhancing Capacity and Accessibility of the IAASB Standards: the IAASB Publishes the First Digital Handbook
In November 2021, the first fully digital IAASB Handbook, containing all IAASB pronouncements, went live on a new web application, e-International Standards (eIS).
This marks a milestone in the IAASB’s commitment to improving the usability of and access to its standards by harnessing technology. For the first time, users will be able to benefit from optimized search functions, cut and paste capabilities, and easy navigation. Designed to meet stakeholders’ needs, the platform also allows for quick reference to other standard-setting boards’ standards and related resources, driving a strong connection between adherence to IAASB standards and the IESBA’s International Code of Ethics for Professional Accountants.
The platform is accessible via the IAASB website or at eis.international-standards.org.
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| How the IAASB is Responding to Assurance Engagements on Sustainability and ESG Reporting
In a recent article, Tom Seidenstein, the IAASB Chair, explains the actions being taken by the IAASB to respond to the increasing demand for assurance engagements on sustainability and ESG reporting. This includes dedicating IAASB capacity and resources to this topic, and undertaking information gathering and research activities to determine the precise scope and timing of the IAASB’s efforts.
The IAASB also recently announced that it has renamed its guidance for assurance of sustainability and ESG reporting, which was originally released in April 2021. The guidance was renamed to help stakeholders more readily identify that the guidance deals with assurance of sustainability and ESG reporting, and other forms of extended external reporting, when applying International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information to such engagements. The guidance is available on the IAASB website. |
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| The IAASB Approves its Work Plan for 2022-2023, Pending PIOB Approval
At its December 2021 meeting, the IAASB approved a new work plan for 2022-2023, which will guide the IAASB’s work over this period. The work plan is pending approval by the PIOB. 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. A key addition to the work plan is sustainability and ESG reporting. In addition, the work plan highlights candidate topics in the audit and review space that the IAASB will consider for a further project to commence in 2023. |
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Get to Know the IAASB Board
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Chun Wee Chiew (IAASB Member)
Chun Wee is the regional head of policy for the Association of Chartered Certified Accountants (ACCA) and is tasked with supporting its advocacy and policy work across Asia Pacific region. He works with key stakeholders to identify and drive new research initiatives that provide evidence-based policy and thinking impacting the business community and profession. Additionally, he is a regular speaker and panel chair on topics including integrated reporting, the evolving role of finance leaders, and audit talent issues.
What characterizes the region that you work in and what changes have you seen that are affecting the audit profession?
I challenge anyone to find one word that will adequately characterize the Asia Pacific countries as a collective. Perhaps the only word that will pass muster is ‘diversity’! The economies here range from small to world-leading; developing to advanced; markets that varyingly thrive on agriculture, manufacturing, financial, digital and more. The regulatory framework, international standards adoption and the broader professional accountancy infrastructure vary in maturity as well. The changes we see therefore mirror global developments, and I think it’s safe to say that every piece of the board’s work has its own engaged audience here. This really is my longwinded way of saying, like the rest of the world, emerging themes of digitization and sustainability, including climate change, are also key themes in Asia Pacific.
All eyes are now on the recently announced new International Sustainability Standards Board (I’ve realized, through attending many webinars in recent time where the new board is mentioned, that its acronym, ISSB, sounds confusingly similar to IAASB!). Important questions are understandably being asked about the corresponding development in assurance standards. I am very keen to see how our guidance for ‘Extended External Reporting’ assurance engagements issued in mid-2021 land in practice and the extent to which it will help meet the needs of assurance providers and the market. I know that we, as a board, will continue to keep close watch on developments in the non-financial reporting and assurance space, and stand ready to further progress our work in the public interests. |
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Other Documents Recently Published
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Coming Soon
- Final Conforming and Consequential Amendments to the IAASB’s Other Standards Due to the New and Revised Quality Management Standards
- Technology FAQ: Planning Materiality & Addressing Exceptions
- ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)
- Support materials for implementing ISA 315 (Revised 2019)
- ISA 220 (Revised) First-time Implementation Guide
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