Service Delivery. Legend

Transcription

1 Page 1 f 7 Internatinal Auditing and Assurance Standards Bard 4 th Quarter 2010 Reprt Legend On target Revised target Belw target This symbl is used if the delivery f all services in this subcategry is expected t be n target, i.e., as presented in the service delivery plan. This symbl is used when the delivery (timing r utput) f ne r mre services in the subcategry has been revised. This symbl is used when: (1) ne r mre services included in the service delivery plan are nt expected t be delivered within the year, r (2) a service is eliminated but nt replaced. Standards and Guidance Cmpliance with due prcess Develpment f high quality prnuncements in accrdance with bard wrk plan Majr Achievements Standards Apprved expsure draft (ED) f prpsed Internatinal Standard n Review Engagements (ISRE) 2400 (Revised), Engagements t Review Histrical Financial Statements (December 2010) Apprved ED f prpsed Internatinal Standard n Assurance Engagements (ISAE) 3410, Assurance Engagements n Greenhuse Gas Statements (December 2010) In additin, in December 2010 the IAASB agreed the issuance f a discussin paper, The Evlving Nature f Financial Reprting: Disclsure and Its Audit Implicatins, and a thught piece, Audit Quality: An IAASB Perspective. These dcuments are further discussed under Prject Updates. Adptin and Implementatin Delivery f implementatin supprt in accrdance with bard wrk plan Majr Achievements Published prgress reprt n IAASB s Clarity ISAs Implementatin Mnitring prject, Implementatin f the Clarified ISAs (Nvember 2010) Released five new ISA vide mdules: Written Representatins; Using the Wrk f an Auditr s Expert; Materiality, Misstatements and Reprting Parts I, II & III (Nvember 2010) In additin, the IAASB signed a jint statement with the Chinese Auditing Standards Bard in recgnitin f the prgress made in adpting the ISAs in China. Psted February 17, 2011 Versin 1

2 Page 2 f 7 In supprt f adptin and implementatin mre generally, the IAASB: Published a guide t resurces n the Clarity ISAs, The Clarified Internatinal Standards n Auditing: An Overview and Guide t Resurces Psted a frequently-asked-questin (FAQ) n an particular implementatin matter regarding ISA 600, Special Cnsideratins--Audits f Grup Financial Statements (Including the Wrk f Cmpnent Auditrs) Submitted a respnse t a questinnaire frm the Financial Stability Bard (FSB) t enable the FSB t update their Cmpendium f Standards, which lists the varius ecnmic and financial standards that are internatinally accepted as imprtant fr sund, stable and well functining financial systems. Representatin f the Accuntancy Prfessin Presentatins at and participatin in relevant events and meetings Develpment/maintenance f relatinships with key stakehlders Develpment f public plicy psitins and external submissins Majr Achievements Issued a respnse t the Eurpean Cmmissin (EC) n their Green Paper, Audit Plicy Lessns frm the Crisis Participated in r presented at the fllwing events: Octber 2010 CReCER Leadership and Cmmitment Reginal Event and Reginal Seminar in Panama City, Panama Frum f Firms Sympsium n ISA 600, Special Cnsideratins Audits f Grup Financial Statements (Including the Wrk f Cmpnent Auditrs) in New Yrk, US Institute f Chartered Accuntants f Pakistan seminars in Islamabad, Karachi and Lahre, Pakistan PCAOB Standing Advisry Grup in Washingtn D.C., US Wrld Bank meeting fr 8 Suth East Eurpe REPARIS Prgram cuntries in Brussels, Belgium Wrld Federatin f Exchanges 50th General Assembly and Annual Meeting in Paris, France XIX Natinal Audit Cngress f Institut de Censres Jurads de Cuentas de España in Madrid, Spain Meeting f the Institute f Internal Auditr s Internal Internatinal Prfessinal Practices Framewrk Oversight Cuncil in Orland, US Nvember Wrld Cngress f Accuntants in Kuala Lumpur, Malaysia 20 th Internatinal Cngress (XX INCOSAI) f the Internatinal Organizatin f Supreme Audit Psted February 17, 2011 Versin 1

3 Page 3 f 7 Institutins Internatinal Organizatin f Supreme Audit Institutins Cngress Suth Africa IASB Standing Advisry Cuncil in Lndn, the United Kingdm (UK) Meeting with Jhannesburg Stck Exchange in Jhannesburg, Suth Africa Meeting with the Independent Regulatry Bard fr Auditrs in Jhannesburg, Suth Africa December 2010 in Jhannesburg, 9 th Annual Cnference f the Fédératin des Experts Cmptables Mediterranéens / Federatin f Mediterranean Accuntants Annual Cnferencein Marseilles, France Cnference f the Fédératin des Experts-Cmptables Eurpéens Stakehlders Expectatins frm Statutry Auditrs in Brussels, Belgium Meeting with Ernst & Yung Glbal Prfessinal Practice in Lndn, UK Meeting with KPMG leadership in Lndn, UK Meeting with PwC leadership in Lndn, UK Written articles: Interview with IAASB Chairman published in the Australian Natinal Institute f Accuntants s Natinal Accuntant Magazine (August/September 2010) KPMG Magazine fr Audit Cmmittees, Challenge the Auditr, It Can Be Very Stimulating (Octber 2010) Cmmunicatins Issues f press releases; annual, quarterly and mnthly reprts; and ther cmmunicatins Maintenance f the website and related initiatives Majr Achievements Issued press releases t annunce the fllwing: Issuance f ED f prpsed Internatinal Auditing Practice Statement (IAPS) 1000, Auditing Cmplex Financial Instruments (Octber 2010) Issuance f ED f prpsed Internatinal Standard n Related Services (ISRS) 4410, Cmpilatin Engagements (Octber 2010) Issuance f prgress reprt n Clarity ISAs Implementatin Mnitring prject, Implementatin f the Clarified ISAs; release f new ISA vide mdules; and release f questins-and-answers (Q&A) publicatin, Auditr Cnsideratins Regarding Significant Unusual r Highly Cmplex Transactins (Nvember 2010) Jint statement f Chinese Auditing Standards Bard and IAASB regarding cnvergence f Psted February 17, 2011 Versin 1

4 Page 4 f 7 Internatinal Standards in China (Nvember 2010) Cngress f the Internatinal Organizatin f Supreme Audit Institutins (INCOSAI) declaratin n Internatinal Standards f Supreme Audit Institutins (ISSAIs) (December 2010) Appintment f new members t the IAASB (December 2010) The website was updated accrdingly in all cases. Develped the publicatin, Why ISAs are right fr the Public Sectr, t explain the value f ISAs t the public sectr (Nvember 2010) Develped the publicatin, Meeting Diverse Needs: A Brad Range f Assurance and Related Services Supprted by Internatinal Standards, t highlight the range f assurance and related service Standards that are particularly applicable t engagements fr small and medium-sized entities (Octber 2010) Eurpean Cmmissin (EC) Adptin Envirnmental Issues In Octber 2010, the EC released its Green Paper, Audit Plicy: Lessns frm the Crisis. The Green Paper cvers a wide variety f audit-related tpics such as cncentratin in the audit market (including hw smaller firms can gain access t larger audits), pssible simplificatin f rules fr small and medium practices (SMPs) and small- and medium-sized entities (SMEs), and auditing standards (including the EC s cnsideratin f adptin f ISAs in the Eurpean Unin). Cmments t the Green Paper were requested by December 8, The IAASB respnded t the Green Paper in December The respnse emphasized the IAASB s alertness t the challenges facing the auditing prfessin arising frm the glbal financial crisis. It draws attentin t the IAASB s cntinued fcus n active engagement with its stakehlders t understand their needs, and t undertake initiatives t address them. The respnse als made reference t the IAASB s Cnsultatin Paper n its strategy and wrk prgram issued in January 2011 stating that as the IAASB prgresses its deliberatins theren, it will be fllwing the prgress f the EC s cnsultatin n its Green Paper with interest. Internatinal Organizatin f Securities Cmmissins (IOSCO) In September 2009, IOSCO released three cnsultatin reprts: Auditr Cmmunicatins; Transparency f Firms that Audit Public Cmpanies; and Explratin f Nn-Prfessinal Ownership Structures fr Audit Firms. The IAASB wrte t IOSCO in January 2010 regarding the cnsultatin reprt n Auditr Cmmunicatins indicating that it shares IOSCO s view that auditr s reprts shuld cmmunicate apprpriate infrmatin t users and its frm and cntent shuld facilitate audit quality. The letter drew t IOSCO s attentin the IAASB s prjects n auditr reprting and audit quality (updates n recent develpments regarding these prjects are prvided under Prjects Updates ). At its December 2010 meeting, the IAASB received a presentatin by Chair f IOSCO Standing Cmmittee #1 Julie Erhardt n IOSCO s Cnsultatin Reprt, Auditr Cmmunicatins. The IAASB will cntinue t seek pprtunities fr clser cperatin and cnsultatin with IOSCO, where apprpriate, in the year ahead. Psted February 17, 2011 Versin 1

5 Internatinal Organizatin f Supreme Audit Institutins (INTOSAI) Psted February 17, 2011 Versin 1 Agenda Item 10-1 Page 5 f 7 At the 20 th INCOSAI, the triennial Cngress f the Internatinal Organizatin f Supreme Audit Institutins (INTOSAI) held in Jhannesburg in Nvember 2010, IAASB leadership welcmed the issuance f the Suth African Declaratin n ISSAIs. The Declaratin endrsed the ISSAIs and INTOSAI guidance n gd gvernance (INTOSAI GOVs). The ISSAIs and INTOSAI GOVs prvide guidance t public sectr auditrs respnsible fr financial audit, perfrmance audit, and cmpliance audit, and als address transparency and accuntability, quality cntrl, peer review, and internal audit. The Declaratin calls upn INTOSAI members t use the ISSAI framewrk as a cmmn frame f reference fr public sectr auditing by implementing the ISSAIs in accrdance with their mandate and natinal legislatin and regulatins. This imprtant milestne fr INTOSAI is particularly relevant t the IAASB, because the ISSAIs fr financial audits include the clarified Internatinal Standards n Auditing (ISAs), as issued by the IAASB, alng with supplemental guidance referred t as Practice Ntes fr each f the 36 clarified ISAs, as develped by INTOSAI s Financial Audit Subcmmittee f the Prfessinal Standards Cmmittee (PSC). Chinese Auditing Standards Bard (CASB) The CASB has cmpleted the revisin f Chinese Standards f Audit (CSAs), and achieved full cnvergence with the clarified ISAs. The revised CSAs were fficially released in early Nvember 2010, and are effective fr audits f financial statements fr perids beginning n r after January 1, In recgnitin f this achievement, in Nvember 2010, the IAASB signed a jint statement with Wang Jun, China s Vice-Minister f Finance. Internatinal Accunting Standards Bard (IASB) At its December 2010 meeting, the IAASB received an update frm IASB Member Prabhakar Kalavacherla n the IASB s current wrk prgram highlighting, amngst ther matters, prjects the IASB is undertaking jintly with the US Financial Accunting Standards Bard (FASB) and the status f the cnvergence effrts between the IASB and the FASB. Mr. Kalavacherla reaffirmed the IASB s cmmitment t wrking with the IAASB n matters f mutual interest and emphasized that nging cperatin cntinues t be imprtant t the wrk f the IASB and IAASB. (This was further cnfirmed in a meeting between Sir David Tweedie and IAASB leadership in January 2011). Mnitring Grup In Nvember 2010, the Mnitring Grup released its Final Reprt, Review f the IFAC Refrms. The Reprt acknwledges the prgress that has been made regarding the 2002 IFAC Refrms, and identifies next steps including a number f near-term actins fr IFAC and the standard-setting bards it supprts, including the IAASB. The actins are fcused n further enhancing diversity, transparency, and accuntability. The IAASB was briefed n the key recmmendatins in reprt at its December 2010 meeting. The Bard will further cnsider the relevant Mnitring Grup s recmmendatins in the cming year. IAASB Strategy and Wrk Prgram, Prjects Update At its December 2010 meeting, the IAASB apprved fr issuance the Cnsultatin Paper, Prpsed IAASB Strategy and Wrk Prgram fr This Cnsultatin Paper seeks views frm stakehlders n the

6 Page 6 f 7 IAASB's prpsed future strategy and pssible actins t implement the prpsed strategy ver the perid It highlights issues facing the accunting prfessin, a number f which are already being addressed in the IAASB's current wrk prgram, and asks fr views n ther new initiatives t fulfill the IAASB's public interest mandate. The Cnsultatin Paper was released in January 2011 and cmments are requested by April 4, IAASB leadership will draw the Cnsultatin Paper t stakehlders attentin wherever pprtunities arise fr example during utreach activities planned fr Q1 2011, and encurage stakehlders t prvide the IAASB with their views as t where they believe the IAASB s time, in the public interest, shuld be spent. Audit Quality At its December 2010 meeting, the IAASB apprved fr release a thught-piece, Audit Quality: An IAASB Perspective. This publicatin intrduces a specific initiative f the IAASB t cntribute t the debate n audit quality. It highlights several imprtant perspectives n audit quality, as a means t stimulate thughts and discussins amngst stakehlders in the financial reprting prcess. The IAASB als deliberated the scpe and bjectives f a prpsal t develp in 2011 a cnsultatin paper n an internatinal audit quality framewrk. The IAASB will cntinue its discussin f the prpsed cnsultatin paper at its March 2011 meeting. Audit f Financial Statement Disclsures At its December 2010 meeting, the IAASB agreed the issuance f the Discussin Paper, The Evlving Nature f Financial Reprting: Disclsure and Its Audit Implicatins. The Discussin Paper addresses critical issues such as challenges in preparing disclsures, the nature and extent f evidence fr different types f disclsures, and the applicatin f the cncept f materiality t disclsures. Cmments t the Discussin Paper are requested by June 1, IAASB leadership will draw stakehlders attentin t the Discussin Paper during utreach activities planned fr Q A series f targeted cnsultatin activities may als be undertaken. The IAASB anticipates it will discuss a prject prpsal in Q Auditr Reprting At its December 2010 meeting, the IAASB agreed the develpment f a cnsultatin paper fr publicatin in the first half f 2011 t explre key issues cncerning auditr reprting such as identificatin f prblems with the current auditr reprting mdel, user needs relating t auditr reprting, infrmatin cncerning the audit f an entity s financial statements and infrmatin cncerning the audited entity. In its discussin, the IAASB recgnized the imprtance f active utreach t key stakehlders n the tpic thrughut the prgressin f the prject. The IAASB will discuss a draft f the prpsed cnsultatin paper at its March 2011 meeting with a view t apprval fr issuance. Other Key Prjects At its December 2010 meeting, the IAASB cnsidered key issues relating t, and a revised draft f, prpsed revised Internatinal Standard n Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits r Reviews f Histrical Financial Infrmatin. The IAASB will cntinue its discussin f prpsed revised ISAE 3000 at its March 2011 meeting with a view t apprval fr issuance as an expsure draft. Psted February 17, 2011 Versin 1

7 Page 7 f 7 IAASB Members Other Matters The December 2010 IAASB meeting was the last meeting fr IAASB members Craig Crawfrd, Jsef Ferlings and Jianhua Tang. We thank them fr their cntributins t the wrk f the IAASB and, fr Messrs Crawfrd and Ferlings, indicatin f their willingness t cntinue participatin in sme task frces f the IAASB. We lk frward t welcming incming IAASB members Jean Blascs, Jianshen Chen and Merran Kelsall in We als cngratulate Diana Hillier n her re-appintment as Deputy Chair; and Arch Archambault, Jn Grant and Caithlin McCabe n their re-appintments t the Bard. Psted February 17, 2011 Versin 1