Today, the International Auditing and Assurance Standards Board (IAASB) opened the public consultation for a group audit-specific section of the proposed auditing standard for less complex entities (LCEs). The proposed section, Part 10, Audits of Group Financial Statements, is intended to form part of the proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) when finalized. The exposure draft is open for public comment until May 2, 2023.

Group audits were not included in the scope of the original Exposure Draft of the ISA for LCE. Given stakeholder feedback, the IAASB reconsidered its decision to exclude group audits and developed proposals that address audits of less complex groups.

With the inclusion of group audits, the IAASB has proposed changes to the Authority of the proposed ISA for LCE. For example, the IAASB removed the prohibition on using the standard when the audit is a group audit unless component auditors are involved, other than in limited circumstances in which a physical presence is needed for a specific audit procedure for the group audit (e.g., for attending a physical inventory count or inspecting physical assets).

The IAASB invites all stakeholder to comment on the exposure draft via the IAASB website. Comments are requested by May 2, 2023.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

The International Ethics Standards Board for Accountants (IESBA) will hold a series of four global roundtables to obtain stakeholder input to help shape the development of new ethics and independence standards for sustainability reporting and assurance.

Demand for timely, relevant, and trustworthy sustainability information has risen dramatically in recent years as such information is increasingly being used to support capital allocation or other decisions by investors, customers, workers, government agencies, and other stakeholders. In response to such demand,  the IESBA announced in June 2022 its commitment to take timely action to develop fit-for-purpose, globally applicable ethics and independence standards as a critical part of the infrastructure needed to support transparent, relevant, and trustworthy sustainability reporting and assurance. Importantly, this strategic commitment sets up the IESBA’s ethics and independence standards as the third pillar to trustworthy sustainability reporting and assurance, alongside the standards being developed by the International Sustainability Standards Board (ISSB) and the International Auditing and Assurance Standards Board (IAASB).  

In December 2022, the IESBA approved two new standard-setting projects that will develop profession-agnostic ethics and independence standards for sustainability reporting and assurance and on the related topic of “use of experts.”

The quality of the standards to be developed and their ability to meet the needs of the users and any providers of sustainability information will critically depend on timely contributions and input from stakeholders globally. The roundtables being organized aim at providing stakeholders the opportunity to convey relevant information to be addressed in developing the standards.

Save the dates! The roundtables will be held in person at the following times and locations:

• Friday, March 24  -  Paris, France               
• Thursday, March 30  -  Sydney, Australia                     
• Monday, April 3  -  Singapore        
• Thursday, April 6  -  New York, USA

The agenda for the roundtables will be available in due course. Videoconferencing facilities will be made available for participants who are not able to attend in person, where available.

Would you like to attend?

As space is limited, attendance will be by invitation only. Register your interest at IESBA@ethicsboard.org  by February 1, 2023, indicating your name, job title, organization, location, and session. An invitation will follow shortly to the selected interested stakeholders!

Who should attend?

Members of the investor and corporate governance communities, data aggregators, rating agencies, and other users of sustainability information; C-suite executives including those leading corporate sustainability initiatives; regulators and oversight bodies; international policy-making organizations; national standard setters; preparers; professional accountancy organizations; and sustainability assurance providers, including accountancy firms and independent providers outside the accountancy profession.

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

The International Public Sector Accounting Standards Board (IPSASB) has released Exposure Draft (ED) 84, Concessionary Leases and Right-of-Use Assets In-kind (Amendments to IPSAS 43 and IPSAS 23) for comment.

ED 84 is part of phase two of the IPSASB’s Leases project. It proposes amendments to IPSAS 43, Leases on accounting for concessionary leases, as well as new guidance on right-of-use assets in-kind and consequential amendments to IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers).

Feedback received to the IPSASB’s Request for Information (RFI), Concessionary Leases and Other Arrangements Similar to Leases helped shape ED 84 and is summarized in a Feedback Statement published alongside the new ED.

“In light of the responses to the RFI, the IPSASB decided to propose new guidance on concessionary leases and right-of-use assets in-kind,” said IPSASB Chair Ian Carruthers. “The proposals in ED 84 will provide new guidance that will enhance transparency, accountability, and decision-making in the public sector.”

Access ED 84 and related documents including the Feedback Statement, At-a-Glance, and webcast at the IPSASB’s website.

How to Comment
To access the Exposure Draft, its summary At-a-Glance document, and the Feedback Statement or to submit a comment, visit the IPSASB website. Comments are requested by May 16, 2023. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Consultation Paper to their members and employees.
 
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
 
About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

The Fast Future With IFAC is a conversational podcast series about small- and medium-sized practicies (SMPs) adapting to the rapidly changing global economy.

Episode Six features a conversation with Hamish Mexted, Founder and Director of Convex Accounting.

We spoke to Hamish about his experience with a range of pressing topics for SMPs, including:

• Cybsercurity and cloud computing
• Communication and relationship-building with clients
• Attracting and retaining talent
• Innovation in the firm

Click below or visit IFAC's iTunes podcast channel to listen to this episode.

(Back to the Fast Future With IFAC homepage.)

The International Auditing and Assurance Standards Board (IAASB) today issued a public consultation for its 2024-2027 proposed strategy and work plan. The strategy seeks to accelerate the actions originally laid out in the 2020-2023 strategy with a focus on standard setting that supports the performance of high-quality audit and assurance engagements.

“Audit and assurance play vital roles in the world’s economies. At their best, audit and assurance practitioners enhance trust in markets and assist in efficient, sustainable resource allocation,” noted IAASB Chair Tom Seidenstein. “Our proposed new strategy strives to develop the globally accepted standards for audit, assurance and related services that enable high-quality engagements, with a distinct focus on both the core need for audits of financial statements and the growing demand for sustainability assurance engagements.”

The proposed strategy outlines four strategic objectives:

• Support the consistent performance of quality audit engagements by enhancing our auditing standards in areas where there is the greatest public interest need;
• Establish globally accepted standard(s) for assurance on sustainability reporting;
• Strengthen coordination with the International Ethics Standards Board for Accountants and other leading standard setters and regulators to leverage better collective actions in the public interest; and
• Create more agile, innovative ways of working in line with the Monitoring Group’s reform vision.

The IAASB’s 2024-2027 work plan describes the technical standard-setting work required to support the strategy. The work plan focuses on where further standards’ development can best contribute to meeting the needs of stakeholders in the external reporting ecosystem, while balancing timeliness with quality.

The IAASB invites all stakeholders to comment on the proposed strategy and work plan via the IAASB website by April 11, 2023. Stakeholders can respond to all questions in the Consultation Paper or focus on those questions that are most relevant to them and where they have specific comments.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared-standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of standards and guidance. For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.