Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting and auditing practices from across the globe. Here is this week’s financial update:-
1. IAASB issues narrow scope amendments in IAASB standards considering ethical requirements for using the work of external experts
The International Auditing and Assurance Standards Board (IAASB) after considering the recently approved revisions to the International Code of Ethics for Professional Accountants issued amendments to IAASB standards. The introduction of explicit ethical requirements for using the work of external experts in audit, assurance, and non-assurance engagements have led to the amendments in following IAASB standards:
(a) ISA 620, Using the Work of an Auditor’s Expert
(b) ISRE 2400, Engagements to Review Historical Financial Statements
(c) ISAE 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information
(d) ISRS 4400, Agreed-upon Procedures Engagements.
Source – International Auditing and Assurance Standards Board
2. IAASB issues approach for updating International Standard of Auditing for audits of Less Complex Entities
The International Auditing and Assurance Standards Board (IAASB) has outlined a formal approach for maintaining and updating the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). Through an approach statement, the IAASB aims to ensure transparency, consistency and clarity in how the standard is revised over time. The approach emphasises that any updates to the ISA for LCE will remain relevant to the nature and circumstances of audits of less complex entities, while also staying proportionately aligned with the core principles and requirements of the full International Standards on Auditing.
The approach statement further explains the overall context, purpose and process for maintaining the ISA for LCE, including roles, responsibilities, outputs and timelines. It also sets out how the IAASB will respond to new or revised auditing standards by assessing their relevance and determining proportionate changes to the ISA for LCE, thereby supporting high-quality, scalable audits for smaller and less complex entities.
Source – International Auditing and Assurance Standard Board
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