Regulatory updates

IAASB has issued amendments to its current standard on going concern. The proposed changes aim to:

• Promote consistent practice and behavior and facilitate effective responses to identified risks of material misstatement related to going concern;
• Strengthen the auditor’s evaluation of management’s assessment of going concern, including reinforcing the importance, throughout the audit, of the appropriate exercise of professional skepticism; and
• Enhance transparency with respect to the auditor’s responsibilities and work related to going concern where appropriate, including strengthening communications and reporting requirements.

Comments are requested by 24 August 2023.

To access the text of the consultation paper, please click here

On 2 August 2023, IAASB issued the Exposure Draft (ED) of the proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. One of the key provisions of the ED is relating to application of materiality by the entity and assurance practitioner.

Based on the feedback received from various stakeholders, IAASB felt the need to provide additional information on materiality matters. Accordingly, recently it issued certain FAQs on the proposed ISSA 5000. The FAQs address various materiality issues, including:

• Application of the concept of materiality to sustainable reporting and assurance
• Definition of ‘double materiality’
• How a practitioner should consider an organisation’s materiality process during a sustainability assurance engagement, etc.

To access the text of the FAQs, please click here

The IAASB issued its strategy and work plan for 2024-2027 that aims at enhancing consistency and quality of audit and assurance standards worldwide and reflects the crucial role of audit and assurance in fostering trust in the world’s economies

Some of its key strategies for 2024-2027 are as follows:

• Focus on completing priority audit and assurance projects related to fraud, going concern and sustainability assurance
• Establishing globally accepted standard(s) for assurance on sustainability reporting
• Engaging with standard setting and regulatory partners to strengthen trust in markets globally
• Creating more agile and innovative ways of working in line with Monitoring Group’s recommendations to enhance independence and accountability in standard setting.

To access the text of the strategy and work-plan, please click here

This report offers a comprehensive overview of the IAASB’s progress in addressing key public interest issues and reiterates its strategic direction to continue bolstering confidence in audits and assurance engagements.

To access the text of the report, please click here

The IAASB has introduced a new Technology Position that will guide how the IAASB adapts its work to embrace the intersection of audit, assurance, and technology. This new position marks a significant step forward in the IAASB’s ongoing commitment to enhancing the quality and relevance of its standards in the face of rapid technological advancement.

The position is structured around 3 key components: The technology position statement This Statement articulates eight key actions the IAASB will take to deliver on its new technology commitments to encourage firms and practitioners to use technology when appropriate.

Operationalise the technology position statement This component details the IAASB’s strategy for implementing the Statement by identifying opportunities for new or revised standards, along with developing non-authoritative materials and guidance.

Monitor and Adapt to technological trends The IAASB is committed to continually monitoring emerging technologies to ensure its standards evolve with the rapidly changing landscape. The Technology Position will also be updated as necessary to remain aligned to the rapidly changing landscape.

To access the page of IAASB’s technology position please click here