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IAASB Releases Implementation Support For New Clarified ISAs
Last Update - 27/10/2009
IAASB News
The International Auditing and Assurance Standards Board (IAASB) has made it a priority to develop implementation support resources for its newly revised and clarified International Standards on Auditing (ISAs). In March, the IAASB released 36 clarified ISAs and International Standard on Quality Control (ISQC) 1 following completion of its Clarity Project, a project which marks one of the most important changes to international auditing standards in many years.
Recognising the significance of the changes and the implications for auditors and their clients, the IAASB staff has developed a series of ISA Modules to promote awareness and understanding of the clarified ISAs. Each of these modules is comprised of a brief video presentation and a set of slides with supporting notes. The modules include an introduction to the Clarity Project and explain the key principles of, and major changes in, some of the new and more significantly revised ISAs. The modules also address the implications of the clarified ISAs for audits of small- and medium-sized entities.
“Effective implementation is essential to realising the full benefits of the clarified standards. The modules are a timely resource that will be helpful to all those involved in implementation and training as well as auditors in the field and others,” explains IAASB Chairman Arnold Schilder.
“As Singapore’s national accountancy body and an IFAC member, ICPAS welcomes the new ISA Modules aimed at promoting awareness and understanding of the clarified ISAs. The practical and useful support resources will enable ICPAS to keep our members and the auditing profession up to date on auditing standards.” Dr Ernest Kan, President, ICPAS.
The clarified ISAs go into effect for audits of financial statements for periods beginning on or after December 15, 2009. Systems of quality control in compliance with the clarified ISQC 1 are required to be established by December 15, 2009.
“These deadlines are just around the corner. Now is the time for firms, auditors, and others to address implementation issues, including necessary changes to audit methodologies and training programs. These implementation tools can help jump start that process, thereby enabling auditors to be better prepared for when the new standards become effective. Auditors may also find it helpful to refer to information in the modules when explaining to their clients what they can expect from an audit conducted in accordance with the new standards,” adds IAASB Technical Director James Gunn.
All ISA Modules are posted in the IAASB Clarity Center on the IFAC website and may be downloaded free of charge. Included are videos, slides, and notes on the following:
•Introduction to the Clarity Project
•The Clarified ISAs, including ISA 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing, audit documentation, and small- and medium-sized entity audit considerations
•ISA 260, Communication with Those Charged with Governance
•ISA 265, Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
•ISA 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
•ISA 550, Related Parties
The IAASB plans to issue another module on ISA 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors), in November. Additional modules are planned for development in 2010.
In addition to the new ISA Modules, the Clarity Center features other resources to assist with implementation, including a question and answer publication entitled, Applying ISAs Proportionately with the Size and Complexity of an Entity. The publication is relevant in the context of any audit, but will be of particular help to those who audit, or oversee the audits of, small- and medium-sized entities.
For more information, contact jamesgunn@ifac.org or IAASB Senior Technical Manager, Ken Siong at kensiong@ifac.org.
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