Forthcoming Key Changes to the IESBA Code Below is a list of the forthcoming key changes to the International Ethics Standards Board for Accountants (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code), available from: International Code of Ethics for Professional Accountants focused on those which are coming into effect from 15 December 2022, except where indicated otherwise. •   In April 2021, IESBA released revisions to the Non-Assurance Services (NAS) provisions of the Code. https://www.ethicsboard.org/publications/final-pronouncement-revisions-non-assurance-service-provisions-code •   In April 2021, IESBA also released revisions to the fee-related provisions of Parts 4A and 4B of the Code. [...]

Exposure Draft: Proposed Amendments to the IRBA Code ‒ Revisions to the Definitions of Listed Entity and Public Interest Entity In November 2022, the IRBA Committee for Auditor Ethics (CFAE) approved the proposed amendments to the definitions of Listed Entity and Public Interest Entity (PIE) in the IRBA Code of Professional Conduct for Registered Auditors (Revised November 2018) (IRBA Code), for exposure for at least 90 days. A board notice to this effect was published in the Government Gazette for public comment. The proposed amendments to the PIE provisions in the IRBA Code will be effective for audits of [...]

Expanding Roles in Sustainability and Digital Transformation Priorities for Professional Accountants in Business and the Public Sector Organisations globally are operating in an economic environment unlike any in recent memory. Finance and business leaders face a difficult balancing act between confronting short-term realities and ensuring future pathways to resilience through investment and innovation. IFAC’s Professional Accountants in Business (PAIB) Advisory Group has compiled insights on how professional accountants are navigating uncertain global conditions, and expanding their roles in both the private and public sectors in a new report, Professional Accountants as Finance and Business Leaders, exploring the key role [...]

Artificial Intelligence Audit Risk Mitigation IRBA recently issued a communique containing information generated by artificial intelligence (AI). It was reviewed and authorised for issue by the Director: Standards. Here are some unedited excerpts: We bring to the attention of registered auditors and firms the growing use of AI tools in the auditing profession, and the potential risks that they pose to the integrity of their work. Specifically, we highlight the use of GPT-3, an AI tool that has the capability to generate natural-sounding language, including written text, which can be used to create false evidence and fabricated working papers. [...]

New IAASB Fact Sheet Helps Auditors Navigate Quality Management for Group Audits The International Auditing and Assurance Standards Board (IAASB) has published a new fact sheet, available by following the link: https://www.iaasb.org/publications/quality-management-and-group-audits-highlighting-certain-aspects-interaction-between-isa-220-revised?utm_source=Main+List+New&utm_campaign=12d32c09e5-IAASB-alert-ISA-220-ISA-600&utm_medium=email&utm_term=0_-12d32c09e5-%5BLIST_EMAIL_ID%5D. The fact sheet deals with the interactions between  ISA 220 (Revised), which addresses quality management at the engagement level, and ISA 600 on group audits. The fact sheet highlights aspects of a group audit that may be affected by ISA 220 (Revised) and International Standard on Quality Management 1, addressing quality management at the firm level. The fact sheet will be particularly useful for group audits in [...]

New Edition of the IAASB Handbook Now Available on the IAASB Website The IAASB has released a new edition of the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, which includes: ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, replacing ISA 315 (Revised). The handbook also incorporates conforming and consequential amendments to other relevant standards arising from ISA 315 (Revised 2019), which is effective for audits of financial statements for periods beginning on or after 15 December 2021. The handbooks may be downloaded, and print copies ordered, from the IAASB [...]

The IESBA Releases Update on Sustainability Work Shares Upcoming Strategy, Including Timeline and Information on Global Roundtables The IESBA recently released the publication, Continuing with the Development of Global Ethics and Independence Standards for Sustainability Reporting and Assurance, providing an overview of the sustainability-related decisions made by the Board and how those decisions will shape the Board's work in 2023 and beyond. On 2 December 2022, the Board unanimously approved two new projects that will deliver the following: Sustainability Project Profession-agnostic independence standards for use by all sustainability assurance practitioners Specific ethics provisions relevant to sustainability reporting and assurance [...]

IAASB Opens Public Consultation on Less Complex Group Audits The International Auditing and Assurance Standards Board (IAASB) opened the public consultation for a group audit-specific section of the proposed auditing standard for less complex entities (LCEs), available on: https://www.iaasb.org/focus-areas/new-standard-less-complex-entities?utm_source=Main+List+New&utm_campaign=96711926d9-IAASB-LCE-ED-alert-1.24.23&utm_medium=email&utm_term=0_-96711926d9-%5BLIST_EMAIL_ID%5D. The proposed section, Part 10, Audits of Group Financial Statements, is intended to form part of the proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), when finalised. Group audits were not included in the scope of the original Exposure Draft of the ISA for LCE, available on: https://www.iaasb.org/publications/exposure-draft-proposed-international-standard-auditing-financial-statements-less-complex-entities?utm_source=Main+List+New&utm_campaign=96711926d9-IAASB-LCE-ED-alert-1.24.23&utm_medium=email&utm_term=0_-96711926d9-%5BLIST_EMAIL_ID%5D. Given stakeholder feedback, the [...]

IFAC Releases New Implementation Tool for Auditors on Identifying and Assessing Risks of Material Misstatement The International Federation of Accountants (IFAC) has released a new resource, The Risk Identification and Assessment Process: Tips on Implementing ISA 315 (Revised 2019), available by following the link: https://www.ifac.org/knowledge-gateway/supporting-international-standards/publications/risk-identification-and-assessment-process-tips-implementing-isa-315-revised-2019?utm_source=Main+List+New&utm_campaign=cdce03c774-IFAC-alert-315-tool&utm_medium=email&utm_term=0_-cdce03c774-%5BLIST_EMAIL_ID%5D The tool helps auditors with implementing the International Auditing and Assurance Standards Board’s ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, effective for audits of financial statements for periods beginning on or after 15 December 2021. The resource is based on Chartered Professional Accountants of Canada’s Implementation Tool for Auditors, [...]

REMINDERS: IRBA: Newly Effective Standards/Practice Statement/Revisions This serves as a reminder of a number of new standards and amendments which have become effective from 15 December 2022: ISQM 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements ISQM 2, Engagement Quality Reviews ISA 220 (Revised), Quality Management for an Audit of Financial Statements SAAPS 2 (Revised 2018), Financial Reporting Frameworks and the Auditor’s Report Quality Management-related Conforming Amendments to the IRBA Code Revisions to the IRBA Code, Non-Assurance Services (NAS) Provisions Revisions to the IRBA Code, Fee-related Provisions [...]