International Standard on Auditing (ISA) 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, replacing ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment. The handbook also incorporates in other relevant standards conforming and consequential amendments from ISA 315 (Revised 2019). ISA 315 (Revised 2019) is effective for audits of financial statements for periods beginning on or after December 15, 2021.
The following standards, which are not yet effective for this version of the handbook, have been included in the back of Volumes 1, 2 and 3, as appropriate:
International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements
ISQM 2, Engagement Quality Reviews
ISA 220 (Revised), Quality Management for an Audit of Financial Statements
Conforming and Consequential Amendments to Other ISAs Arising from the Quality Management Projects
ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)
Conforming and Consequential Amendments to Other International Standards Arising from ISA 600 (Revised)
Conforming and Consequential Amendments to the IAASB’s Other Standards as a Result of the New and Revised Quality Management Standards
The handbooks can be downloaded from the IAASB website, where users can also order print copies of the three-volume handbook. It will also be available in the e-International Standards (eIS) online platform in 2023.
The International Auditing and Assurance Standards Board (IAASB) has published a new fact sheet on the interactions between International Standard on Audit (ISA) 220 (Revised), which addresses quality management at the engagement level, and ISA 600 on group audits. The fact sheet highlights aspects of a group audit that may be affected by ISA 220 (Revised) and International Standard on Quality Management 1 addressing quality management at the firm level. This includes the revised definition of engagement team and leadership and direction, supervision, and review responsibilities.
The factsheet will be particularly useful for group audits in which component auditors are involved.
The International Federation of Accountants (IFAC) today released a new resource, The Risk Identification and Assessment Process: Tips on Implementing ISA 315 (Revised 2019). The tool helps auditors implement the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Auditing (ISA) 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, which is effective for audits of financial statements for periods beginning on or after December 15, 2021.
The implementation toolprovides an overview of core concepts and explains new and previously existing requirements. It also includes examples and emphasizes the scalability of the standard with a focus on less complex entities. The tool does not replace the need to read ISA 315 (Revised 2019), including its application and other explanatory material.
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
New Resource Helps Implement ISA 315 (Revised 2019)
The International Public Sector Accounting Standards Board (IPSASB) has welcomed the contribution from the ACCA (Association of Chartered Certified Accountants) to support its proposed development of a public sector specific sustainability reporting framework.
“ACCA’s contribution provides welcome support for our initiative to develop urgently-needed public sector specific sustainability reporting standards,” said Ian Carruthers, IPSASB Chair. “Despite strong stakeholder support for our proposals, our expertise in standard setting alone cannot take us over the finishing line. Financial support from the global community is essential if we are to equip governments with the quality standards necessary to report on their critical contributions to addressing the global climate emergency and other sustainability issues.”
Helen Brand, chief executive, ACCA said, “We are pleased to be the initial funders of the IPSASB's critical work to develop international sustainability reporting guidance that is fit for the public sector. The world's sustainability aspirations, including net zero and inclusive growth, will not be met without concerted government action and a robust reporting framework. ACCA believes that the IPSASB has the right international networks and due process to complete this sustainability work program. Alongside the investment, ACCA will be working closely with IFAC, the IPSASB, and our other public sector partners to advance the field of sustainability reporting for the public sector.”
The IPSASB announced last week that it is moving into a research and scoping phase for three potential initial public sector specific sustainability reporting projects and has called upon the global community for its help in securing the resources needed to begin guidance development.
To contribute financial or other support to the IPSASB for the development of global public sector specific sustainability reporting guidance, please email Ross Smith, IPSASB Program and Technical Director (rosssmith@ipsasb.org) or James Gunn, Managing Director, Professional Standards (jamesgunn@profstds.org).
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.
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We’re a thriving global community of 241,000 members and 542,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values. We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies. Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report. We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities. And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com.
The threats to the world and its citizens from climate change are well publicized. Yet, despite significant government influence over the global economy, there is no internationally recognized public sector reporting framework to guide how they measure and report their critical contributions to addressing the global climate emergency. Reporting on climate change is one of the most important issues in sustainability reporting, which also encompasses environmental, social and governance issues.
At its December meeting, in light of the urgency of this issue, the International Public Sector Accounting Standards Board (IPSASB) decided to commence the scoping of three potential public sector specific sustainability reporting projects pending securing the resources needed to begin guidance development.This decision builds on IPSASB’s 25 years of public sector standard setting experience as well as the strong global stakeholder support for the proposals in its Consultation Paper, Advancing Public Sector Sustainability Reporting.
“Public sector-specific sustainability reporting guidance would encourage transparency, allowing governments to be held accountable for the long-term impacts of their interventions, and enabling better-informed decision-making,” said Ian Carruthers, IPSASB Chair. “The feedback we’ve received from stakeholders around the world is clear: the public sector needs its own specific sustainability reporting framework and the IPSASB should lead its development. But in addition to our existing expertise, it is a fact that we will need additional support, both financial and otherwise, from the global community before we can take on the development of global guidance that would equip the public sector with the tools necessary to report on climate change and other sustainability issues.”
The IPSASB’s immediate action will be to establish a Sustainability Task Force to lead this first critical phase of research and scoping. The Board’s prioritized research topics are:
General Requirements for Disclosure of Sustainability-related Financial Information,
Climate-Related Disclosures, and
Natural Resources – Non-Financial Disclosures (in parallel with the development of financial reporting guidance proposed in its Consultation Paper, Natural Resources).
Resources are needed to support the IPSASB’s program of activity and stakeholder engagement, and to begin guidance development. To contribute financial or other support to the IPSASB for the development of global public sector specific sustainability reporting guidance, please email Ross Smith, IPSASB Program and Technical Director (rosssmith@ipsasb.org) or James Gunn, Managing Director, Professional Standards (jamesgunn@profstds.org).
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.
Building on strong stakeholder support, the international public sector standard setter takes the next step in advancing public sector sustainability reporting pending securing the resources needed to begin guidance development
The Invitations for Applications are open to all individuals and interested organizations, including those representing investors and the corporate governance community, regulatory bodies, national standard setters, audit practitioners, professional accountancy organizations and public sector organizations, and those in academia. Individuals may also make nominations on their own behalf.
These vacancies are exciting opportunities for experienced individuals from diverse backgrounds to contribute to the evolving multi-stakeholder and multi-cultural composition of each board. Importantly, there is a tremendous opportunity to contribute to safeguarding the proper functioning of financial markets and economies worldwide. Successful candidates take part in the IAASB´s efforts to gain further global acceptance of its standards to have high-quality audit and assurance as a foundational element of trustworthy financial and sustainability information.
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. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
To guide professional accountancy organizations (PAOs) in how they can act today to prepare their current and future members to seize opportunities presented by emerging trends, IFAC has published a new report with insights from its Professional Accountancy Organization Development and Advisory Group. These insights address four emerging trends—sustainability-related reporting, anti-corruption efforts, sound public financial management, and technological change—that will help PAOs ensure their own and their members’ resilience, relevance and adaptability today and into the future.
The PAO Development and Advisory Group encourages PAOs to consider how their educational programming can respond to these trends, and engage accordingly with their education stakeholders. Actioning some or all of the insights in the new report will help PAOs improve their value proposition and the attractiveness of the profession, while helping address issues that are fundamental to the public interest.
The International Auditing and Assurance Standards Board (IAASB) has published new guidance to help users understand the impact on the International Standards on Auditing (ISAs) due to narrow-scope amendments made to International Accounting Standard (IAS) 1, Presentation of Financial Statements by the International Accounting Standards Board (IASB).
While the IAASB remains framework neutral when developing the ISAs, it considers financial reporting framework developments that may affect the ISAs, such as changes to the International Financial Reporting Standards (IFRS). Amendments to IAS 1 and the Impact on the ISAs: Disclosure of Material Accounting Policy Information, among other matters, provides users with guidance on how to address the effect of the amendments on a number of illustrative auditor reports throughout the ISAs that assume, as part of the fact pattern, that the financial statements are prepared by the management of the entity in accordance with IFRSs.
The new guidance does not amend or override the ISAs, the texts of which alone are authoritative. Reading the new guidance is not a substitute for reading the ISAs.
Public financial management (PFM) reforms will only be achieved through finance professionals with the right skills and knowledge.
Governments are implementing PFM reforms in a bid to improve the accountability, transparency, governance and integrity of revenues and spending. But many reforms have addressed structures, systems and processes rather than people and capabilities, according to ACCA (the Association of Chartered Certified Accountants) and the International Federation of Accountants (IFAC).
A new joint ACCA/IFAC report – released at the World Congress of Accountants (WCOA) held in Mumbai India 18-21 November – aims to boost PFM reforms across the globe.
A Global Guide for Professionalisation in Public Sector Finance outlines what professionalisation means in public sector finance, sets out the benefits of professionalisation, and offers a high-level roadmap to support global good practice in professionalisation.
Discussing the global guide ahead of a panel discussion at WCOA, Joseph Owolabi, ACCA President, said: ‘Professionalisation brings credibility, trust and confidence in public finances by supplementing the systems and public finance processes with the right skills for accountability, transparency, good governance and external scrutiny. A professionalised workforce within a finance function supplies more than accounting information. They bring wide value to public sector finances – providing improved revenue collection, effective budgetary controls, and the data required to support policy decision making.’
Kevin Dancey, IFAC CEO, said: ‘We are looking to rebalance the focus so that it is not only on the process but also on the people. The value of the accountancy profession, whether in the public or private sectors, comes from the experience, skills, judgement and ethical behaviour of its people. By increasing the number of professional accountants working in the public sector, we will no doubt add to the credibility and effectiveness ofPFM, and reinforce trust in public services and spending.'
Achieving professionalisation brings multiple benefits to the economy, governments and individuals. A key benefit for economies is greater financial credibility; for governments improved financial management discipline; and for individuals gaining access to diverse career options.
The report acknowledges that achieving professionalisation is not straightforward or easy. It requires political will, structures, adoption and implementation of complex policies plus continuous development and improvement.
The report has case studies of good practice from Tanzania, the UK, Cyprus, the Philippines Pakistan, Malaysia and Wales.
Alex Metcalfe, ACCA’s Head of public sector, said: ‘Political leadership and commitment for professionalisation is the most important factor for sustaining PFM reforms over time. In some countries, there is a lack of recognition that change is needed at all. In other countries, PFM reforms have concentrated on moving from cash-based to accrual-based accounting. But now more effort is urgently required to professionalise public finance staff and provide opportunities for training for professional qualifications.’
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associations in 135 jurisdictions, representing more than 3 million accountants, in public practice, education, government service, industry and commerce.
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants.
We’re a thriving global community of 241,000 members and 542,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values.
We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies.
Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report.
We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities.
And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com
Professionalisation of the workforce is one of the most important steps in achieving step change in public sector financial management
Volunteers are sought to serve as members on the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting body that serves the public interest by setting high-quality accounting standards for use by public sector entities around the world in the preparation of general purpose financial reports.
Volunteers’ initial three-year term of service will commence January 1, 2024. Candidates will ideally have a public sector background and/or experience in standard setting to be able to contribute value to the work of the Board. English proficiency (both written and oral) is essential, as this is the language in which the IPSASB operates, although nominations from jurisdictions where English is not the main language, are encouraged.
Nominations of qualified candidates from all regions of the world are encouraged, with a particular emphasis on Francophone Africa, Latin America, and the Caribbean. Nominations from a wide range of relevant backgrounds are sought, including, but not limited to, candidates from:
Users of general purpose financial reports, such as parliamentarians, budget offices, and credit-rating agencies;
Ministries of Finance, Treasury Departments, and other such preparers of accrual-based financial statements, including those reporting directly or indirectly in accordance with IPSAS or in the process of transitioning to IPSAS; and
Public sector external auditors.
“In order to develop high-quality international standards and effectively promote IPSAS adoption, IPSASB volunteers need diverse backgrounds and skillsets,” said Ian Carruthers, IPSASB Chair. “With the continuing global transition to accrual IPSAS, I strongly encourage individuals that are using IPSAS, or actively transitioning to IPSAS, to apply and nominate candidates. In addition to the global impact volunteers can make, Board participation is also a valuable experience that benefits the volunteer and its nominating or employing organization.”
All stakeholders, including the general public, as well as International Federation of Accountants (IFAC) member organizations, the Forum of Firms, governments, and other organizations are invited to nominate candidates.
The deadline for submitting applications is January 31, 2023. Please see the Call for Nominations for more details and information on how to submit an application.
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 Nominating Committee
The Nominating Committee is responsible for the selection process for IPSASB membership, including leadership roles. The Public Interest Committee oversees the nominations process for IPSASB and provides its advice. The International Federation of Accountants® (IFAC®) Board approves the IPSASB composition. To learn more about the Nominating Committee, please visit IFAC website.
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.
