January 18, 2007
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In this issue:
1. IAASB Issues First Set of Final ISAs in Clarity Style
The International Auditing and Assurance Standards Board (IAASB) has issued the first four final International Standards on Auditing (ISAs) redrafted as part of its comprehensive program to redraft standards to make them clearer and easier to understand and to be translated. The four redrafted ISAs are:
The four redrafted ISAs have a provisional effective date for audits of financial statements for periods beginning on or after December 15, 2008. (While the final common effective date for all redrafted ISAs will be determined as the IAASB's agenda progresses, it will not be earlier than December 15, 2008.)
The redrafted ISAs may be downloaded free-of-charge from the International Federation of Accountants' (IFAC) online bookstore at http://www.ifac.org/store.
2. IAASB Approves Amendments to Preface
In December, the IAASB approved amendments to the Preface to International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services, which establishes the conventions to be used by the IAASB in drafting future ISAs and the obligations of auditors who follow those standards. The amended Preface, which contains statements about the authority of the IAASB's standards, may be downloaded at http://www.ifac.org/store.
3. Staff Report Outlines Status of Clarity Project
The IAASB staff has prepared a report that highlights the status made thus far on the IAASB's project to redraft its international standards following the clarity drafting conventions. The document, Status of the IAASB's Work to Improve the Clarity of Its Standards, describes the main changes to the IAASB's standards arising from the application of its clarity drafting conventions and explains the IAASB's approach to implementing the conventions to all ISAs.
The staff report, along with additional information on the IAASB's work program, is available at http://www.iaasb.org.
4. Comments Invited on Clarity Exposure Drafts
In December, the IAASB issued the following five exposure drafts (EDs) of proposed ISAs redrafted in the clarity style:
It also issued an ED of proposed ISA 580 (Revised and Redrafted), Written Representations, which is designed to improve the quality and appropriateness of written representations sought by the auditor and to deal with concerns as to whether auditors over-rely on representations at the expense of other evidence.
Comment deadlines for the EDs range from March 31 to April 30, 2007. They may be downloaded at http://www.ifac.org/eds.
5. Three Additional Clarity Exposure Drafts Still Open for Public Comment
There is still time to provide comments on three additional EDs that the IAASB released in November 2006 as part of its clarity project:
Comments on these EDs are requested by February 15, 2007, and they may be downloaded at http://www.ifac.org/eds.
6. IAASB Seeks Input on Strategic Review
The IAASB is inviting responses to a Strategic Review Questionnaire which seeks views on the IAASB's stakeholders, objectives and activities. The results will assist the IAASB in developing a strategic plan for 2008-2010. The questionnaire can be accessed by going to www.surveymonkey.com/s.asp?u=462963092454. The deadline for completing the questionnaire is February 23, 2007. It should take no more than 30 minutes to complete the questionnaire.
7. 2007 Auditing and Ethics Handbook to Be Available Later This Month
The 2007 edition of the Handbook of International Auditing, Assurance, and Ethics Pronouncements will be available for download in PDF format free-of-charge by the end of January with print copies available for delivery in February. The 2007 handbook features all IAASB pronouncements issued as of December 31, 2006, including the first four final ISAs redrafted under the clarity drafting conventions. It also includes an updated Preface, Glossary of Terms, and Code of Ethics for Professional Accountants.
The 2007 handbook will be available for download from the IFAC bookstore at http://www.ifac.org/store. Print copies will be available for US$100 plus shipping from the bookstore or by calling +1 212-471-8722.
8. World Federation of Exchanges Endorses ISA Standard-Setting Process
At the meeting of its General Assembly in October 2006, the World Federation of Exchanges, which represents 57 securities and derivative markets that account for more than 97 percent of world stock market capitalization, formally endorsed the standard-setting process for establishing ISAs. ISAs represent an integrated body of standards for use in all audits, including publicly traded companies, private businesses of all sizes and government entities. For more information on ISAs and the IAASB, visit: http://www.iaasb.org.
9. Upcoming Meetings
The next meeting of the IAASB will be held in New York, United States on February 13-16, 2007. The following meeting will be held in Sydney, Australia on April 16-20, 2007. These meetings are open to public observers. For more information and to register to attend these or other IAASB meetings, visit: http://www.ifac.org/IAASB/Meetings.php.
The IAASB Consultative Advisory Group's meetings are also open to public observers. Its next meeting will be held in New York, United States on April 2-3, 2007. For more information and to register to attend, visit: http://www.ifac.org/IAASB/About.php#ConsultativeAdvisoryGroup.
For more information about any of the items mentioned above or other information about the IAASB, please contact: pr@ifac.org or visit the IAASB's homepage at http://www.iaasb.org.
About the IAASB and IFAC
The objective of the IAASB, an independent standard-setting board of IFAC, is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes its due process and working procedures.
IFAC is the worldwide 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.