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IRBA Highlights Heightened Responsibilities and Risks in Auditing Listed Entities
The Independent Regulatory Board for Auditors (IRBA) reminds audit firms of the responsibilities and risks associated with auditing listed entities.
It is imperative that audit firms rigorously apply the requirements of the International Standards on Quality Management, International Standards on Auditing, the IRBA Code, and other regulatory requirements before accepting such clients.
The IRBA has adopted the ‘IFIAR Core Principles’, which requires a risk-based inspections programme. Some 80 percent of IRBA’s inspection resources are dedicated to monitoring audit firms that accept public interest entities (PIEs) as assurance clients, which include listed entities. Listed entities, as defined by the IRBA Code, include any entity that issues financial instruments traded on a public market, and not only those with listed equity.
An entity that only lists instruments other than equity, such as debt, exchange-traded funds, redeemable preference shares, and interest rate instruments, meets the definition of a listed entity and is classified as a PIE, and more likely to be selected for inspection.
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