IAASB Enhances Auditor’s Report Transparency on Independence to Reflect Revisions in the IESBA Code of Ethics

The International Auditing and Assurance Standards Board (IAASB) has released amendments aimed at bolstering transparency and providing auditors with a clear mechanism to action changes to the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics for Professional Accountants (including International Independence Standards) (the Code). The IAASB amended International Standard on Auditing 700 (Revised), Forming an Opinion and Reporting on Financial Statements and ISA 260 (Revised), Communication with Those Charged with Governance. The amendments are available on:
https://www.iaasb.org/publications/narrow-scope-amendments-isa-700-revised-forming-opinion-and-reporting-financial-statements-and-isa?utm_source=Main+List+New&utm_campaign=e35e4538a0-IAASB+release+-+PIE+-+Oct+2023&utm_medium=email&utm_term=0_-e35e4538a0-%5BLIST_EMAIL_ID%5D

The Code now requires firms to publicly disclose when a firm has applied the independence requirements for public interest entities in an audit of the financial statements of an entity. The IAASB’s amendments provide a clear and practical framework for implementing this new requirement through appropriate communication in the auditor’s report, and with those charged with governance.

Throughout the development of these amendments, the IAASB aimed to align key concepts in the IAASB’s and IESBA’s standards to the greatest extent possible.