The International Auditing and Assurance Standards Board (IAASB) today released First-time Implementation Guide for ISA 220, Quality Management for an Audit of Financial Statements. The guide will help stakeholders understand the standard and properly implement its requirements as intended.

Alongside the previously released implementation guides for International Standard on Quality Management (ISQM) 1 and 2, the new Guide will help stakeholders implement the IAASB’s suite of quality management standards. The suite of standards was released in December 2020 and come into effect on December 15, 2022.

These publications do not amend or override ISA 220 or ISQM 1 or 2, the text of which alone are authoritative. Reading these publications are not a substitute for reading the ISQMs. The IAASB encourages all practitioners to plan early for appropriate implementation, given the potential impact of the changes to firms’ quality management systems.

The Public Interest Oversight Board’s (PIOB) newly formed Standard Setting Boards’ Nominations Committee has issued the Invitations for Application for the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants. The application period will be open until March 30, 2022.

The Nominations Committee will make recommendations to the PIOB for up to five new appointments and re-appointments to the IAASB for terms beginning January 1, 2023. The Invitations for Application are open to all individuals and interested organizations, including those representing investors and the corporate governance community, regulatory bodies, national standard setters, accounting and audit firms, professional accountancy organizations and public sector organizations, and those in academia. Individuals may also make nominations on their own behalf.

For additional information, please see the PIOB’s nominations web page or email SSBNominations@ipiob.org.

The International Auditing and Assurance Standards Board (IAASB) today released further conforming and consequential amendments to the IAASB’s standards resulting from the new and revised quality management standards, which were released in December 2020. The conforming amendments remove actual or perceived inconsistencies between the IAASB’s suite of standards and the quality management standards. This allows the IAASB’s full suite of standards operate in conjunction with each other and without confusion, which is especially crucial given the importance of firm-level quality management to the consistent performance of quality engagements.

The standards covered in today’s release do not include the International Standards on Auditing (ISAs). Conforming and consequential amendments to the ISAs were finalized and released in December 2020 alongside the quality management standards.

The conforming amendments to the IAASB’s International Standards become effective as of December 15, 2022.

The IFAC-IAASB less complex entities survey—part of the IAASB’s consultation on audits of financial statements of less complex entities—is open until January 14. While the IAASB encourages all interested stakeholders to respond to the consultation in writing, the survey provides a way to participate and provide feedback that is less time and resource intensive. The survey is available in English, French and Spanish by clicking the language selector in the survey’s top right corner. Survey responses will be analyzed by the IAASB alongside all other feedback and help shape the final standard; individual survey responses are confidential.

For additional information on the IAASB’s proposed new standard for audits of less complex entities, which was issued in July for a six-month consultation, visit iaasb.org/less-complex-entities.

The IFAC-IAASB less complex entities survey—part of the IAASB’s consultation on audits of financial statements of less complex entities—is open until January 14. While the IAASB encourages all interested stakeholders to respond to the consultation in writing, the survey provides a way to participate and provide feedback that is less time and resource intensive. The survey is available in English, French and Spanish by clicking the language selector in the survey’s top right corner. Survey responses will be analyzed by the IAASB alongside all other feedback and help shape the final standard; individual survey responses are confidential.

For additional information on the IAASB’s proposed new standard for audits of less complex entities, which was issued in July for a six-month consultation, visit iaasb.org/less-complex-entities.

The Technology Working Group of the International Auditing and Assurance Standards Board (IAASB) today released non-authoritative support material to help auditors understand how to plan an audit under International Standard on Auditing (ISA) 300, Planning an Audit of Financial Statements, when using automated tools and techniques (ATT).

The publication does not amend or override the ISAs, the texts of which alone are authoritative. Reading the publication is not a substitute for reading the ISAs. 

The International Federation of Accountants (IFAC) has selected Mr. Paul Druckman of the United Kingdom as the 2021 recipient of the IFAC Global Leadership Award, recognizing his contributions to the advancement of the global accountancy profession and capital markets.

Mr. Druckman is a passionate global leader in capital market reform, bringing about significant advancements in corporate governance and corporate reporting to enhance accountability for responsible business and sustainability. He currently serves as the Chairman of both Clear Insurance and the World Benchmarking Alliance, which is developing transformative benchmarks to enable companies to accelerate their contribution to sustainable development goals.

After qualifying as a chartered accountant in 1979, and becoming a mathematics teacher and then IT entrepreneur, Mr. Druckman served as president of the Institute of Chartered Accountants in England & Wales (ICAEW) in 2004/5. Mr. Druckman subsequently acted as executive chair of the Prince of Wales’s Accounting for Sustainability Project, and in this role he was central to the formation of the International Integrated Reporting Council (IIRC) to bring about an enhanced corporate reporting system relevant to the digital, knowledge-driven, and resource-constrained world of the 21st century. He led the IIRC as founding CEO achieving the development of the International Integrated Reporting Framework in 2013.

Mr. Druckman has also been a board member of the Financial Reporting Council (FRC) over two separate terms, including the post Enron era and then again until 2019. He also chaired the FRC’s Corporate Reporting Council, which sets UK accounting standards.

“I am delighted that Paul has received the IFAC Global Leadership Award this year,” said President of IFAC Alan Johnson. “While his roots are as a Chartered Accountant, his entrepreneurial spirit and drive have led him to a very successful career within the profession, one which we all benefit from through his insights into important emerging fields, such as technology and sustainability. Given the commitments by world leaders at COP26 that ends this week, Paul’s vision for a sustainable world on which he has been campaigning for many years is hopefully now in sight”.

Established in 2017 by the IFAC Board, the IFAC Global Leadership Award in Honor of Robert Sempier recognizes individuals who make outstanding contributions to the global accountancy profession. The award honors the contributions of Robert Sempier, IFAC’s first executive director who greatly contributed to the development of the profession worldwide.

The Global Leadership Award was presented during IFAC’s Council meeting, held virtually on November 10-11, 2021.

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.

In late July, the International Auditing and Assurance Standards Board (IAASB) opened a six-month public consultation on its landmark new proposed standard for audits of financial statements of less complex entities (LCEs).

While the IAASB encourages all interested stakeholders to respond to the consultation in writing, it recognizes that some may not have the time or resources to do so. To help, the International Federation of Accountants and the IAASB developed a survey to offer an alternative way to participate in the consultation and provide your views. The survey is open until January 14, 2022 and is available in English, French and Spanish by clicking the language selector in the survey’s top right corner.

Survey responses will be analyzed by the IAASB alongside all other feedback and help shape the final standard; individual survey responses are confidential.

In late July, the International Auditing and Assurance Standards Board (IAASB) opened a six-month public consultation on its landmark new proposed standard for audits of financial statements of less complex entities (LCEs).

While the IAASB encourages all interested stakeholders to respond to the consultation in writing, it recognizes that some may not have the time or resources to do so. To help, the International Federation of Accountants and the IAASB developed a survey to offer an alternative way to participate in the consultation and provide your views. The survey is open until January 14, 2022 and is available in English, French and Spanish by clicking the language selector in the survey’s top right corner.

Survey responses will be analyzed by the IAASB alongside all other feedback and help shape the final standard; individual survey responses are confidential.

Join the IAASB for the final LinkedIn Live session discussing the recently proposed new standard for audits of less complex entities on November 17 at 8 am EST. The session will feature IAASB Member Julie Corden, LCE Reference Group Member Andrew Brathwaite, and IAASB LCE Task Force Member Brendan Murtagh discussing what the proposed new standard could mean for audit firms and practitioners that serve less complex entities, including the benefits of the standard and what firms, engagement partners and teams need to consider when deciding to use it.

The previous sessions in the series are available on LinkedIn and YouTube. The first session addressed the journey to the proposed new standard and its key principles (watch on LinkedIn or YouTube). The second session addressed for which entities the proposed standard can be used, who makes decisions regarding use of the standard, and how those decisions are made (watch on LinkedIn or YouTube).

The IAASB strongly encourages all interested stakeholders to provide their feedback on the proposed new standalone standard for audits of less complex entities by January 31, 2022. The standard is relevant to users of financial statements, owners, management, and those charged with governance of entities, preparers of financial statements, legislative or regulatory authorities, relevant local bodies with standard-setting authority, professional accountancy organizations, academics, regulators and audit oversight bodies, and auditors and audit firms, among others.