The International Auditing and Assurance Standards Board (IAASB) today published a Discussion Paper, Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the International Standards on Auditing (ISAs). The IAASB seeks to further understand the challenges of using ISAs in audits of less complex entities—and views about possible actions to address these challenges.

The IAASB recognizes the global call for action to address issues of complexity, length, understandability, scalability, and proportionality related to using the ISAs. Continuing the debate on these strategic issues, the Discussion Paper explores how the IAASB, and others, could further support auditors working in increasingly evolving environments.

The IAASB welcomes input from all interested stakeholders as we chart an appropriate way forward. The consultation will remain open until September 12, 2019. French and Spanish translations will be available on the IAASB’s website in mid-May.

In late June 2019, the International Ethics Standards Board for Accountants^® (IESBA^®) will launch its eCode—an innovative digital product that offers professional accountants a new way to engage with the International Code of Ethics for Professional Accountants (including International Independence Standards).

To introduce the eCode, the IESBA invites you to join a 30-minute webinar on Wednesday, June 12, 2019 at 10am EST.

During the webinar, IESBA Member Brian Friedrich will explain IESBA’s vision for the eCode and provide a quick walkthrough to demonstrate the eCode’s structure, key features and functionalities. Don’t miss out on this wonderful opportunity to learn about this product.

To join, click the link below to register:

• Wednesday June 12^th 2019 at 10 a.m. EST

More information about the Code is available at the IESBA’s website.   

If you have questions about this webinar, please email Carla Vijian.

Gaylen R. Hansen has been appointed chair of the Consultative Advisory Group (CAG) to the International Ethics Standards Board for Accountants (IESBA), effective July 1, 2019. His appointment, which has been approved by the Public Interest Oversight Board, follows his election by IESBA CAG members. He has served on the IESBA CAG representing the US National Association of State Boards of Accountancy since 2010.

As chair, Mr. Hansen will lead the IESBA CAG―an independent body of international organizations from the regulatory, corporate governance, investor, preparer and user communities, and other stakeholders—in providing strategic and technical advice to the IESBA in the public interest. Mr. Hansen will play a key role in ensuring that the CAG’s views are considered in IESBA deliberations.

For over a decade, Mr. Hansen served on the board of directors, and as chair from 2012 to 2013, of NASBA, a key participant in US accountancy profession regulation. He is also a founding member of NASBA’s Center for the Public Trust, and represents NASBA on the International Auditing and Assurance Standards Board CAG.

Mr. Hansen is also a member of the American Institute of CPAs’ Auditing Standards Board and a past member of its Professional Ethics Executive Committee. He is a past member of the US Public Company Accounting Oversight Board’s Standing Advisory Group and a retired audit partner.

“I am honored to have been elected IESBA CAG chair,” said Mr. Hansen. “The CAG plays a vital role in enabling all those concerned in the work of, or services provided by, professional accountants to have a voice in the development and maintenance of standards that ensure a high level of ethical conduct. I look forward to shepherding the CAG’s diversity of experience to assist the IESBA setting robust ethics standards.”

Mr. Hansen will succeed Mr. Kristian Koktvedgaard, who has served as CAG Chair since July 2013. “I congratulate Gaylen on his appointment as CAG chair,” said Mr. Koktvedgaard. “His experience and commitment working on ethics combined with his strong knowledge in audit, assurance and accounting issues is a great asset, and I am confident he will lead the CAG effectively in providing sound strategic and technical advice.”

Commenting on Mr. Hansen’s appointment, Dr. Stavros Thomadakis, IESBA Chairman, said, “Gaylen is a veteran in policy matters relating to the accountancy profession. His experience will serve the CAG well in its objective to provide public interest input to our standards development work. I congratulate Gaylen and I very much look forward to working with him in his new leadership role. On behalf of the IESBA, I also thank Kristian for his outstanding contribution to our work and his strong leadership of the CAG over the years. I wish him continued success in his future endeavors.”

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves 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 IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

The structures and processes that support IESBA operations are facilitated by IFAC.

Please visit www.ethicsboard.org for more information, and follow us on Twitter @Ethics_Board.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

As mounting global economic, social and environmental challenges test financial markets and social stability, IFAC (International Federation of Accountants) today hosted 23 leaders of international organizations dedicated to effective international rulemaking at the Sixth Annual Meeting of the Partnership of international organisations spearheaded by the OECD.

At the meeting, OECD Secretary-General Angel Gurría launched The Contribution of International Organisations to a Rule-Based International System — a new Brochure, which reveals how international organizations contribute to a rule-based international system in support of better policies and better lives.

Opening the meeting, OECD Secretary-General Angel Gurría commented: “International organizations contribute to a rich, diverse ecosystem of international rules and standards. Nevertheless, they are not immune from a context where trust in public institutions, evidence, and expert advice is deteriorating. Our Partnership of international organizations is helping to identify the conditions for more successful outcomes in the international rulemaking landscape. The OECD is proud to host such an important initiative, at a time when coordinated action is more crucial than ever to address the issues affecting our citizens.”

Welcoming delegates, IFAC Chief Executive, Kevin Dancey said: “Widely adopted rules and standards supported by international organizations are the most visible sign of our collective efforts to support social and economic stability globally. Moreover, the negotiation, collaboration, and multi-stakeholder engagement that underpins global rule-making truly defines our shared public interest objectives. No laws require nations to adopt and implement the standards IFAC supports. They are adopted because their quality, legitimacy and impact are assured through active, purposeful consultation. IFAC is proud, for example, that International Standards on Audit and Assurance and Ethics have been adopted in over 120 jurisdictions, and that number is increasing. And in the next five years, the forecast is that use of accrual accounting by governments globally will leap from 25% to 65%, resulting in greater public sector transparency and adoption of International Public Sector Accounting Standards. Unlocking the answers to the world’s biggest challenges will require more, not less, of this collaborative spirit,” he said.

The Partnership of international organizations works to clarify the terminology used for international instruments and identify approaches and practices that support inclusive, evidence-based and coordinated international rulemaking. The Partnership includes over 50 organizations spanning a wealth of sectors, from accounting to animal health. The Brochure is the result of cooperation among international organizations and with country delegates in annual discussions, technical meetings, and a dedicated survey on international rulemaking practices. It offers a broad overview of the internal disciplines needed to underpin the quality of international rules.

IFAC strongly supports international standards for audit & assurance, ethics, education and public sector accounting. The standards are prepared in an oversight environment focused on the public interest. IFAC and its members are experts in providing adoption and implementation guidance and support —crucial to ensuring the standards effectively support the nations in which they are embraced.

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 over 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

The International Ethics Standards Board for Accountants (IESBA) today released its Strategy and Work Plan, 2019-2023. Titled Elevating Ethics in a Dynamic and Uncertain World, the publication describes the board’s strategy and priorities toward the setting of high-quality, future-ready ethics standards for professional accountants that are widely adopted around the world.  

Building on the newly revised and restructured International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) which will come into effect in June 2019, the IESBA’s Strategy features three inter-related strategic themes:

• Advancing the relevance and impact of the Code, through maintaining a global Code fit for purpose in the evolving environment, and further raising the bar on ethics;
• Deepening and expanding the Code’s influence, through increasing global adoption and effective implementation of the Code; and
• Expanding the IESBA’s perspectives and inputs, through proactively engaging and seeking cooperative avenues with stakeholders.

Supporting the achievement of these strategic themes is a comprehensive and ambitious Work Plan. The Plan outlines commitments, priorities, planned actions of the Board and key milestones, including continued strong coordination with the IAASB as and where needed.

“This new Strategy and Work Plan embodies our clear determination to pursue global public interest objectives and outcomes, underpinned by our firm belief in the centrality of Ethics and in a unified Code for all professional accountants,” said IESBA chairman Dr. Stavros Thomadakis, adding, “The priorities and actions in the SWP have been calibrated to safeguard the relevance of the Code in an era of changing technologies, business methods and public expectations, and to reinforce its role as a linchpin of public trust in the profession.”

The development of the Strategy and Work Plan was informed by broad-based stakeholder input over the last two years, including a survey of stakeholders and a public consultation paper.

To learn more about the board and its work, visit www.ethicsboard.org.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves 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 IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

The structures and processes that support IESBA operations are facilitated by IFAC. Please visit www.ethicsboard.org for more information, and follow us on Twitter @Ethics_Board.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

The International Ethics Standards Board for Accountants (IESBA) today released for public comment Exposure Draft, Proposed Revisions to Part 4B of the Code to Reflect Terms and Concepts Used in ISAE 3000 (Revised). Part 4B of the revised and restructured International Code of Ethics for Professional Accountants (including International Independence Standards) comprises the independence standards for assurance engagements other than audit and review engagements, as defined in the Code.

The proposed revision fulfills a pre-commitment the IESBA announced in its proposed Strategy and Work Plan, 2019-2023 to review Part 4B of the Code for any changes needed to make the provisions in that Part consistent with the revised assurance terms and concepts in the International Auditing and Assurance Standards Board’s International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

The proposals in the Exposure Draft include:

• Changes in key terminology, including a revised definition of the term “assurance client”;
• Enhanced and clarified independence requirements for attestation engagements;
• Clarification of the types of assurance engagement addressed in Part 4B; and
• Simplified guidance on assurance engagements that refer to the definitive source of explanatory material on such engagements in IAASB literature.

The proposals were developed in close cooperation with representatives of the IAASB, as part of the coordination program of the two standard-setting boards.

Comments on the Exposure Draft are requested by June 26, 2019 from all stakeholders.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves 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 IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

At a time of increasing momentum for IPSAS adoption and implementation globally, the International Public Sector Accounting Standards Board (IPSASB) today published its Strategy and Work Plan 2019-2023: Delivering Global Standards. Inspiring Implementation, which will shape the Board’s work and priorities for the next five years.

To ensure it delivers in the public interest, the IPSASB’s strategic objective is:

Strengthening Public Financial Management (PFM) globally through increasing adoption of accrual-based IPSAS. Delivered through two main areas of activity, both of which have a public interest focus:

• Developing and maintaining IPSAS and other high-quality financial reporting guidance for the public sector; and
• Raising awareness of IPSAS and the benefits of accrual adoption.

“Governments depend on the trust of their citizens and their national and international stakeholders in order to deliver their goals efficiently and effectively. The regular publication of high-quality accrual-based financial reports helps strengthen public financial management, and is a fundamental ingredient in maintaining that trust,” said IPSASB Chair Ian Carruthers.

“IPSAS-based information provides a comprehensive and comparable picture of a public sector entity’s financial performance and position. IPSAS adoption and implementation therefore represent fundamental steps for governments to take, not only to increase transparency and accountability to their citizens and stakeholders, but also to inform effective decision making, so contributing to fiscal stability and sustainability. Our new Strategy and Work Plan is intended both to support and to help inspire governments and other public sector organizations making that journey,” Mr. Carruthers added.

The IPSASB will implement its Strategy and Work Plan 2019-2023 through two streams:

• Delivering global standards by:
• Setting standards on public sector specific issues;
• Maintaining IFRS alignment;
• Developing guidance to meet users’ broader financial reporting needs;
• Inspiring their implementation by:
• Promoting IPSAS adoption and implementation; and
• Advocating the benefits of accrual in strengthening PFM.

The Board’s top standard-setting priorities through 2023 include completing its current public sector specific projects, notably revenue, leases, public sector measurement, heritage and infrastructure, as well as making progress with its new public sector specific projects, including natural resources.

The International Public Sector Financial Accountability Index projects that in five years, 65% of countries will report on the accrual basis. The IPSASB seeks to capitalize on this growth by working with key stakeholders to promote IPSAS adoption and implementation and the benefits of accrual information in strengthening PFM.   

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 International Ethics Standards Board for Accountants^® (IESBA^®) is pleased to announce two 90-minute webinars supporting the roll-out of the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

To join one of the two webinars, any professional using, applying and enforcing the Code should click the link on their preferred date below to register:

• Thursday March 28, 2019 at 7:00 AM EST
• Wednesday April 17, 2019 at 10:00 AM EST

During the webinar, the IESBA representatives will explain the Code’s new structure; and the substantive revisions, including to the conceptual framework and provisions relating to inducements, including gifts and hospitality; pressure; and preparing and presenting information. The webinar will also touch on the new Non-compliance with Laws and Regulation (NOCLAR) and  revised Long Association provisions which are already effective; as well as the IESBA’s e-Code initiative.

Effective mid-June 2019, the Code reinforces professional accountants’ responsibility to comply with the five fundamental principles of ethics and emphasizes the International Independence Standards that apply in performing audits, reviews and other assurance engagements.

More information about the Code is available at the IESBA’s website.   

If you have questions about this webinar, please email Geoff Kwan at geoffkwan@ethicsboard.org.  

Accounting technicians play an important role in many jurisdictions and an accounting technician qualification is frequently a pathway into the accountancy profession. IFAC is delighted to share a framework for professional accountancy organizations that will support a competent, skilled and future-ready accounting technician workforce.

“Prepared by the AAT, and based on the association’s competency framework, An Illustrative Competency Framework for Accounting Technicians is a conversation starter,” explained Joseph Bryson, Head of Quality & Development at IFAC. “IFAC hopes that every professional accountancy organization with an interest in the accounting technician qualification shares their experiences and helps to grow this important segment of the global accountancy ecosystem.”

The Framework’s illustrative example is a resource for professional accountancy organizations creating an Accounting Technician designation as an additional pathways into the accountancy profession. Those interested in sharing their experience and knowledge should email their articles and/or resources marked “IFAC AAT Framework Discussion”.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

Extended external reporting (EER) is becoming increasingly common and there is a growing demand for assurance engagements in relation to it. The International Auditing and Assurance Standards Board (IAASB) seeks feedback on its progress in developing draft guidance in the first phase of its EER Assurance project. Public input is requested by June 21, 2019.

EER encapsulates many different forms of reporting including, but not limited to, integrated reporting, sustainability reporting and other reporting by entities about environmental, social and governance matters.

The IAASB Consultation Paper, Extended External Reporting Assurance , includes the first part of draft guidance for practitioners applying International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information, to EER assurance engagements. Input received will assist the IAASB in continuing to develop a complete non-authoritative guidance document due to be published in the second phase of the project.

This consultation includes draft guidance covering:

• The suitability of criteria (reporting framework or standards) used to prepare the EER report;
• Preparer-developed criteria to determine the matters reported on (a preparer’s “materiality process”);
• The types of misstatements that may occur in the EER report (building assertions);
• The materiality of misstatements in the EER report;
• The preparer’s governance and internal control over its process to prepare the EER report; and
• Narrative and future-oriented information in the EER report.

The IAASB invites input on the draft guidance from all stakeholders, especially those with practical experience in this evolving area of reporting, including practitioners and other experts involved in performing engagements, preparers of EER reports, investors and other users, standard setters, and regulators.

Comments on the Consultation Paper are requested by June 21, 2019.

The IAASB’s EER Assurance project is being run with the support of the World Business Council for Sustainable Development.

About the IAASB

The IAASB 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.