IAASB consultation on new standard for the audits of less complex entities

The deadline for responding to the IAASB consultation on a new standard for the audits of less complex entities, 31 January 2022, is fast approaching. For further information, see here.

UK: FRC publishes revised quality management standards for auditors

The Financial Reporting Council has published three revised quality management standards covering audit firm responsibilities in respect of the design, inplementation and operation of quality management systems: see here. The individual standards are available here (pdf), here (pdf) and here (pdf). The feedback statement and impact assessment, which cover all three standards, can be found here (pdf). The standards are based on those approved by the International Auditing and Assurance Standards Board last year: see here.

IAASB consults on proposed changes to International Standards on Auditing

The International Auditing and Assurance Standards Board has published for consultation proposed changes to the International Standards on Auditing the purpose of which is to clarify the expectations of auditors when auditing financial statement disclosures: see here.

IAASB re-releases for consultation amended ISA 720 (Auditor responsibilities relating to other information)

The International Auditing and Assurance Standards Board has re-released for consultation an amended version of International Standard on Auditing (ISA) 720 (Revised), The Auditor’s Responsibilities Relating to Other Information: see here (pdf). The purpose of the proposed standard is to clarify and strengthen the scope of auditor responsibilities in respect of information in annual report other than the audited financial statements. Background information is available here.

IAASB proposals to improve the auditor's report

The International Auditing and Assurance Standards Board has published proposals to improve the usefulness of the auditor's report. The proposals are set out in an exposure draft titled Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing (ISAs): see here. A summary of the proposals is available here (pdf). The UK's Financial Reporting Council has welcomed the proposals: see here.

BCBS consults on guidance for the external audits of banks

The Basel Committee on Banking Supervision has published for consultation guidance on the external audits of banks: see here (pdf). The guidance contains 16 principles which represent supervisory expectations with regard to the external audit and audit quality, including the role of the audit committee. It replaces earlier guidance published by the Committee (The relationship between banking supervisors and bank's external auditors, published in 2002, and External audit quality and banking supervision, published in 2008). The Committee has also written to the International Auditing and Assurance Standards Board with recommendations to improve some of the Board's Standards: see here (pdf).

IAASB consults on audit quality framework

Earlier this year the International Auditing and Assurance Standards Board published for consultation its proposed framework for audit quality: see here (pdf). Responses are invited by 15 May 2013 and, in particular, the IAASB would like to know if the framework is clear, comprehensive and useful.

IAASB consultation on auditor reporting - responses published

Earlier this year the International Auditing and Assurance Standards Board published a consultation paper titled Enhancing the Value of Auditor Reporting (see here, pdf). Responses have now been published: see here.

UK: APB issues new ISAs (UK and Ireland)

Yesterday the Auditing Practices Board issued 33 new International Standards on Auditing (UK and Ireland), a new International Standard on Quality Control (UK and Ireland) 1 and a revised statement of the scope and authority of APB pronouncements.

The new standards, which incorporate the clarified international standards issued by the International Auditing and Assurance Standards Board, replace the existing ISAs (UK and Ireland) and ISQC (UK and Ireland) 1 and apply to audits of financial statements for periods ending on or after 15 December 2010 (the existing standards continue to apply to accounting periods ending before this date). The new standards adopt a different format from the existing ISAs and contain some new requirements and guidance. A summary of the main changes is available here (pdf).