IAASB Proposes New Strategy and Work Plan for 2024-2027
On January 11, 2023, the IAASB issued a public consultation for its proposed Strategy and Work Plan for 2024–2027. The strategy builds upon the 2020–2023 strategy with an emphasis on standards that enable the performance of high-quality engagements to enhance trust in markets.
The proposed strategy comes at an exciting time for the IAASB as we implement the Monitoring Group recommendations. This strategy, with the benefit of these recommendations, will strengthen our ability to adapt to rapidly changing public interest demands. Our commitment to developing a global baseline for sustainability assurance standards is maybe the strongest, but not exclusive, example of how we moved quickly to address emerging public interest requirements.
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The proposed strategy also highlights that we will continue to support the consistent performance of quality audit engagements by enhancing our auditing standards in areas where there is the greatest public interest need and notes that the amount of standard-setting and regulatory initiatives across the world is only growing. The IAASB, in coordination with IESBA, will engage with our regulatory and standard-setting partners to help ensure that our coordinated actions strengthen trust in markets.
We are interested in your views on the proposed strategy and work plan and welcome your input via the IAASB website by April 11, 2023.
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Share Your Views on the Proposed Revisions to the ISA on Audit Evidence
The IAASB released its Exposure Draft (ED) on ISA 500 (Revised), Audit Evidence on October 25, 2022, for public comment.
The proposed changes include:
- Clarifying the purpose and scope of the standard and explaining its relationship with other standards.
- A principles-based approach to considering the relevance and reliability of information to be used as audit evidence and evaluating whether sufficient appropriate audit evidence has been obtained, recognizing the changing nature and number of information sources used by auditors in today’s world.
- Increased recognition of the use of technology by the entity and the auditor, including the use of automated tools and techniques.
- More emphasis on the role of professional skepticism when making judgments about information to be used as audit evidence and evaluating audit evidence obtained.
The proposed revisions provide a “reference framework” for auditors when making judgments about audit evidence throughout the audit.
The IAASB is interested in your views, which may be submitted via the website. The comment period will remain open until April 24, 2023.
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Coming Soon: Exposure Draft on Group Audits in the Proposed Standard on Audits of Less Complex Entities (ISA for LCE)
The IAASB is currently developing a new, stand-alone standard for audits of financial statements of less complex entities (LCEs). In 2021 the IAASB released an exposure draft of the proposed standard, which did not include group audits in its scope. Given respondents’ feedback, the IAASB reconsidered its decision to exclude group audits and has developed proposals that address less complex group audits. The proposed content is based on ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) which comes into effect for audits of financial statements for periods beginning on or after December 15, 2023.
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The IAASB will be releasing the exposure draft of the proposals for public comment in late January 2023 for a 90 day comment period. A key feature of the proposal will be that the use of component auditors is prohibited when using the ISA for LCE, other than in limited circumstances when physical presence is needed for a specific audit procedure (e.g., for attending a physical inventory count or inspecting physical assets).
The IAASB invites all interested stakeholders to comment on the exposure draft. For further information about the LCE project, visit our project page.
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Welcome to Our New Board Members
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We are excited to welcome our two new Board Members that joined as of January 2023.
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Neil Morris
Mr. Morris is currently the Global Head of Assurance and ESG Methodology at KPMG. He is a Chartered Accountant and has 24 years' experience with KPMG in South Africa and the United Kingdom. His work experience includes risk management, climate change and sustainability, financial audit, and assurance technical support.
Mr. Morris is a member of the South African Institute of Chartered Accountants (SAICA) and a Registered Auditor with the South African Independent Regulatory Board for Auditors (IRBA).
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Greg Schollum
Mr. Schollum is the Deputy Controller and Auditor-General of New Zealand, a position he has held for seven years. Thirty-four of his 42-year career has involved him in an audit capacity in both the public and private sectors.
He has served on standard-setting boards in New Zealand and internationally, including serving for five years on the International Public Sector Accounting Standards Board.
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Want to join our Board in 2024?
The Invitations for Applications for vacancies on the IAASB have been issued by the Public Interest Oversight Board’s (PIOB) Standard-Setting Boards Nominations Committee for terms beginning January 1, 2024. The application period is open until February 10, 2023.
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Other Documents Recently Published
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- Technology FAQ: Addressing Exceptions & Planning Materiality when Using Automated Tools and Techniques
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