Late yesterday, the International Organization of Securities Commissions (IOSCO), the international body of securities regulators, announced its support for the IAASB’s International Standard on Sustainability Assurance (ISSA) 5000. ISSA 5000 is a new global standard for sustainability assurance developed through a robust, collaborative due process.

In its statement, IOSCO highlights how ISSA 5000 fulfills key IOSCO recommendations to establish a comprehensive global assurance framework for sustainability-related corporate reporting. Critically, ISSA 5000 also requires practitioners to follow a strong ethical framework, a vital component of IOSCO’s recommendations. The International Ethics Standards Board for Accountants’ new sustainability-related standards, set for approval later this year, will provide practitioners with the ethics framework needed and meet IOSCO’s recommendation.

With global momentum building for mandatory sustainability reporting, the IAASB notes IOSCO’s encouragement for jurisdictions worldwide to adopt or incorporate ISSA 5000 to enhance confidence and comparability in sustainability disclosures. The IAASB is fully prepared to support jurisdictions in their adoption and implementation efforts. The IAASB will be releasing a series of implementation materials to support ISSA 5000 use in January.

Read IOSCO’s statement on the IOSCO website here.

Learn more about ISSA 5000 here: iaasb.org/issa5000

The International Federation of Accountants (IFAC) warmly welcomes the appointment of Rodrigo Buenaventura as new Secretary General of the International Organization of Securities Commissions (IOSCO), and congratulates IOSCO on the announcement.

Lee White, Chief Executive Officer of IFAC, said: "IOSCO is one of IFAC’s most important global partners. Rodrigo’s appointment to Secretary General provides an exciting opportunity to deepen our collaboration, and to strengthen our relationship on behalf of the global accountancy profession.”

Mr. Buenaventura currently serves as Chair of the Spanish Securities and Markets Commission (CNMV).  He is a member of the IOSCO Board and the Board of Supervisors of ESMA.  He also serves as Chair of the IOSCO Sustainable Finance Task Force, Vice-chair of the OECD Corporate Governance Committee and Chair of the ESMA Markets Standing Committee.

“With his extensive experience in securities regulation, corporate governance, and sustainable finance, there is no doubt that Rodrigo will add meaningfully to IOSCO’s important work in sustainability reporting and assurance and integrity in Carbon Markets, among other areas. I have worked closely with Rodrigo over a number of years, and look forward to working closely with him into the future.

“I also wish to recognize the outstanding contributions of Tajinder Singh in his role as Acting Secretary General, and in his ongoing role of Deputy Secretary General, and I look forward to continuing to work together,” said Mr. White.

IFAC, an Affiliate Member of IOSCO and the sole representative of the accountancy profession, shares with IOSCO a longstanding commitment to promoting high-quality financial reporting and audit, high-quality sustainability reporting and assurance, good corporate governance, and broader investor protection. 

About IFAC

IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

Today, the International Federation of Accountants (IFAC) released the third and final installment in its three-part publication series to help small- and medium-sized practices (SMPs) implement the International Auditing and Assurance Standards Board’s (IAASB) suite of quality management standards. Installment Three: Monitoring and Remediation provides tips and guidance for the practical implementation of the monitoring and remediation of a firm’s system of quality management.  

Installment Three addresses: 

• The factors driving the nature, timing and extent of the monitoring activities. 
• The scope and outcome of monitoring activities to establish a feedback loop for continuous improvement.   
• Establishing a framework for evaluating findings, identifying deficiencies, and evaluating the severity and pervasiveness of deficiencies, which includes investigating root causes.   
• Responding to identified deficiencies and communication about monitoring and remediation.  
• The ongoing evaluation of the system of quality management.   

Installment Three includes multiple documentation aids covering annual monitoring and evaluation of the system of quality management, cyclical inspection of completed audits and other engagements and a monitoring and remediation report to assist practitioners. It also continues the case study introduced in the previous installments. 

Installment One of the series addressed the mindset change the new standards require and the shift in focus from quality control to quality management. Installment Two covered development of an implementation plan for quality management.  

This series joins IFAC’s collection of available resources that support quality management implementation, including webinars, articles and videos, as well as the IAASB first-time implementation guides, all of which are available at ifac.org/qualitymanagement. 

This publication series and other resources like it underscore IFAC’s commitment to supporting SMPs and empowering them to provide the best possible service to their clients. IFAC acknowledges and appreciates feedback from IFAC’s Small and Medium Practices Advisory Group and Forum of Firms representatives in the development of the series. 

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 more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce. 

The International Auditing and Assurance Standards Board (IAASB) has released a comprehensive adoption guide designed to help jurisdictions adopt the ISA for LCE, an alternative to the full suite of International Standards on Auditing. The guide provides valuable insights into the adoption process, highlighting common steps and successful approaches, while also addressing potential challenges. The guide also outlines steps for legislative, regulatory, or relevant local bodies with standard-setting authority to allow practitioners to use the ISA for LCE.

Accessible on the IAASB website, the adoption guide complements previously released resources, including videos, webinars and guidance. These materials will be supplemented by a first-time implementation guide later this year. Together, these resources offer a robust toolkit for navigating and implementing the ISA for LCE.

The new guidance does not amend or override the ISA for LCE, the text of which alone is authoritative. Reading the guidance is not a substitute for reading the ISA for LCE. For more information and to access the new guidance, visit: www.iaasb.org/ISAforLCE

The International Public Sector Accounting Standards Board (IPSASB), developer of reporting standards for the public sector, announced its new 2025 board members at its recent meeting in Brussels, Belgium. The 2025 board will continue to be a diverse group with gender-parity and exceptional global public sector financial and sustainability reporting experience. 

The new IPSASB appointees have been selected following a rigorous nomination and interview process operated by the IFAC Nominating Committee, which is overseen by the Public Interest Committee, and with the final appointments approved by the IFAC Board. 

The new Board members, appointed for a three-year term of service, are: 

• Yun Huang, China 
• Sung-Jin Park, Korea 
• Karen Sanderson, UK  

The following three current Board members have been re-appointed: 

• Abdullah Al-Mehthil, Saudi Arabia
• Claudia Beier, Switzerland 
• Maik Esser-Müllenbach, Germany 

Claudia Beier of Switzerland has been appointed as the IPSASB Deputy Chair for 2025. 

“Each year, we continue to welcome diverse voices and perspectives, which are needed to support our global standard-setting activities,” said IPSASB Chair Ian Carruthers. “Diversity of Board membership is essential to ensure the delivery of high-quality standards that can strengthen public financial management and sustainable development globally.” 

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 and sustainability reporting standards 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, the government of Canada, and the World Bank. 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. 

Today, the staff of the International Ethics Standards Board for Accountants (IESBA) released an updated Questions & Answers (Q&A) publication. This updated IESBA staff Q&A publication introduces two revisions:

1. A new question and answer addressing the scenario where a jurisdiction either lacks a PIE definition or has excluded one or more of the mandatory categories in the IESBA PIE definition.
2. An amendment to align with the revisions to ISA 700 (Revised) arising from Track 1 of the IAASB’s project to use the auditor’s report to enhance transparency about the relevant ethical requirements for independence applied for certain entities, such as PIEs, when performing an audit of financial statements.

The IAASB and IESBA have worked closely together throughout their respective Listed Entity and Public Interest Entity (PIE) projects. Track 1 of the IAASB’s project was completed in June 2023 and Track 2 is ongoing. Among other project objectives, Track 2 aims to achieve convergence to the greatest extent possible between the boards’ PIE definitions and key concepts.

Considering the importance of the interoperability of IAASB and IESBA standards, the IAASB PIE project team has incorporated the clarified IESBA position reflected in 1 above into its deliberations. The IAASB will consider different options for Track 2 at the September 2024 IAASB meeting.

The IAASB’s narrow scope revisions to ISA 700 (Revised) and 260 (Revised) arising from Track 1 of its project will become effective for audits of financial statements for periods beginning on or after December 15, 2024, coinciding with the effective date of the PIE definition changes in the IESBA’s International Code of Ethics for Professional Accountants (including International Independence Standards).

The IAASB has released the 2023-2024 edition of the Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, which includes International Standard on Auditing (ISA) 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors).

The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE, is also included although it has not yet become effective for jurisdictions that adopt the standard.

For the first time, the 2023-2024 Handbook comprises four volumes to improve user experience and accommodate new as well as revised standards.

• Volume 1 – International Auditing Practice Notes, International Standards on Auditing, and International Standards on Quality Management
• Volume 2 – The ISA for LCE
• Volume 3 – International Standards on Assurance Engagements, International Standards on Review Engagements, and International Standards on Related Services
• Volume 4 – A Framework for Audit Quality and the International Framework for Assurance Engagements

The 2023-2024 Handbook is available as a PDF download and print orders via the IAASB website.

Reproducing and Translating the IAASB Handbook
To help adoption and implementation of the IAASB standards, stakeholders are invited to request permission to reproduce or translate the IAASB handbook via the Online Permissions Requests or Inquiries system on the IFAC website.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

The International Auditing and Assurance Standards Board (IAASB) has issued new guidance on the application of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE. The Authority Supplemental Guidance will help users in determining the appropriate situations to use the standard.

The guidance will be particularly beneficial for legislative and regulatory authorities implementing the standard, firms developing related policies or procedures, and auditors determining whether the standard is appropriate to use for a specific engagement.

Accessible on the IAASB website, this guide complements previously released resources, including videos, webinars, and the Auditor Reporting Supplemental Guidance. Later this year, the IAASB will also issue an adoption guide and a first-time implementation guide. Collectively, these materials provide a comprehensive toolkit for navigating adoption and implementation of the ISA for LCE.

The new guidance does not amend or override the ISA for LCE, the text of which alone is authoritative. Reading the guidance is not a substitute for reading the ISA for LCE. For more information and to access the new guidance, visit: www.iaasb.org/ISAforLCE

Professional accountants in business (PAIBs) occupy a pivotal position in driving sustainable business practices, fostering transparency, and contributing to the economic and social well-being of communities worldwide. Recognizing that in an increasingly interconnected and rapidly changing global economy, the role of accountants is evolving, the theme of our last PAIB Advisory Group meeting was Accounting for a Better World. The event was hosted by IFAC Member SAICA (South African Institute of Accountants) in Cape Town, South Africa, and the theme was inspired by the ACCA’s agenda for action.

PAIBs comprise a significant part of the profession working in commerce, industry, financial services, education, and the public and not-for-profit sectors, and the PAIB Advisory Group focuses on ensuring these accountants meet the future needs of business and the public sector by convening leaders, sharing their knowledge and insights, and identifying trends globally.  

Informed by IFAC’s PAIB Advisory Group’s last meeting, our new article, Accounting for a Better World, outlines multiple opportunities where professional accountants can have an impact, including: 

• Enabling Africa’s transformation  
• Diversifying entry into the accountancy profession and strengthening the talent pipeline  
• Ensuring sustainability and excellence as a CFO Driving integrated thinking through strong corporate governance 
• Harnessing the transformative opportunities of AI  
• Nature-related accounting and financial disclosure  

Sanjay Rughani, PAIB Advisory Group Chair said: “To IFAC’s members worldwide, I urge you to seize the momentum generated by our discussions and embark on a journey of continuous learning, innovation, and collaboration. Our discussions were not merely exchanges of ideas but rather catalysts for action, igniting a sense of purpose and urgency. Professional accountants, now more than ever, have the opportunity to contribute to creating a better world.” 

Read the article now.   

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.  

About the PAIB Advisory Group  

Formed in 1977, the PAIB Advisory Group is comprised of volunteers with experience and expertise in the world of business and the public sector, nominated by the professional accountancy organizations that make up IFAC’s membership.  

The International Federation of Accountants (IFAC) has submitted a comment letter to the International Auditing and Assurance Standards Board (IAASB) on its Exposure Draft for the proposed amendments to Standards resulting from revisions to the definitions of  listed entity and public interest entity (PIE) in the IESBA Code. 

IFAC appreciates the efforts of the IAASB in working with the IESBA to harmonize definitions and terminology in this important area and is broadly supportive of the proposed changes. Within our response we raise several challenges: 

• Existing expectations gaps could be compounded by language implying that standards should be required to meet heightened stakeholder expectations for PIEs.   
• Further clarity needs to be provided about the extent of work the auditor is required to carry out to identify PIEs that are not labelled as such by law, regulation, or other requirements.  
• The extension of the requirement to provide written confirmation of auditor independence to those charged with governance should also set clearer timings for when this should take place.  
• Considering the level of activity that will be needed for implementation, the proposed 18 to 24-month period following approval of these amendments might not be sufficient. 

IFAC will remain engaged with the IAASB’s consultation process until the publication of a final standard and supporting guidance materials.