INTERNATIONAL FEDERATION OF ACCOUNTANTS E-NEWS (12/02/04)
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1) John Kellas Named New IAASB Chair
The IFAC Board appointed John Kellas, MA, FCA, as chairman of theInternational Auditing and Assurance Standards Board (IAASB) for a three-year period, beginning January 1, 2004. Mr. Kellas, a partner in KPMG's London office and chairman of the firm's Assurance Technical Committee, has served on the IAASB and its predecessor committee, the International Auditing Practices Committee, since October 2000. Most recently, he co-chaired a task force of the IAASB and the US Auditing Standards Board that worked on the development of the newly released audit risk standards.
2) New Assurance Framework Released
To respond to the increased need for assurance reports on a wider range of issues, the IAASB has released a revised Assurance Framework and an International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. The Framework describes the objectives of an assurance engagement and identifies engagements to which International Standards on Auditing (ISAs) and ISAEs apply. ISAE 3000 establishes basic principles and essential procedures for all assurance engagements other than audits or reviews of historical financial information covered by ISAs. The documents may be downloaded by going towww.ifac.org/store.
3) IAASB Seeks Comments on Proposed Guidance on Group Audits
The IAASB is proposing revisions to ISA 600, The Work of Related Auditors and Other Auditors in the Audit of Group Financial Statements. The ISA also includes a proposed new International Auditing Practice Statement (IAPS), The Audit of Group Financial Statements. Comments on this exposure draft (ED) are due by March 31, 2004. It is proposed that the standards be applicable for audits of financial statements for periods beginning on or after December 15, 2004. The ED may be downloaded free of charge by going towww.ifac.org/EDs.
4) New Wording for Auditor's Report Proposed
The IAASB has released an ED of a revision to ISA 700, The Independent Auditor's Report on General Purpose Financial Statements, proposing significant changes to the auditor's report to help promote consistency in reporting practices worldwide. In addition, the IAASB proposes conforming changes to ISA 200, Objective and General Principles Governing an Audit of Financial Statements, ISA 210, Terms of Audit Engagements, ISA 560 Subsequent Events, ISA 701, Modifications to the Independent Auditor's Report; and ISA 800, The Independent Auditor's Report on Special Purpose Audit Engagements.
Comments are due by March 31, 2004. It is proposed that the standards be applicable for audits of financial statements for periods beginning on or after December 15, 2004. The ED maybe downloaded free of charge by going towww.ifac.org/EDs.
5) 2004 IFAC Handbook of International Auditing, Assurance, and Ethics Prouncements to be Released in Print and Electronic Form
Copies of the 2004 IFAC Handbook, which includes IFAC's Code of Ethics for Professional Accountants, ISAs, ISAEs and International Standards on Review Engagements issued through December 31, 2003, may now be ordered by email@example.com. The print handbook is available for US$100 plus shipping. An eComPress CD-ROM or eComPress online version may also be ordered for US $100 each. Arrangements for network users are also available. The eComPress version features a user-friendly search function and the ability to copy and paste text and insert notes. The print and eComPress version (either online or CD-ROM) may be ordered as a package for US$170 plus shipping. The PDF version of the 2004 IFAC Handbook will be available at no charge and may be downloaded from the IFAC website no later than March 1, 2004.
6) IAASB Holds Meeting with National Standard Setters
The IAASB hosted a meeting in January with national standard setters from approximately a dozen countries around the world as part of its ongoing efforts to enhance cooperation with standard setters, identify ways to further progress towards convergence and to explore ways in which IAASB and standard setters can work together efficiently to serve the public interest. Topics discussed during the meeting included IFAC's reforms (see below), the priorities of the various boards, matters impacting convergence, reengineering and the clarity of IAASB's ISAs, assurance projects and implementation guidance.
7) IFAC Initiates Major Reforms
In November 2003, IFAC's Council unanimously approved proposals for reform designed to strengthen its standard-setting activities. Key elements of the reforms, which are also supported by worldwide regulators, include the establishment of a Public Interest Oversight Board (PIOB) beginning in 2004, an expanded role for the IAASB's Consultative Advisory Group to provide for more public input into the standard-setting process, and a more formal structure to ensure ongoing dialogue between IFAC and international regulators. For more information, go tohttp://www.ifac.org/Downloads/ReformProposals.doc.
IFAC is dedicated to serving the public interest, strengthening the worldwide accountancy profession, and contributing to the development of strong international economies. Its current membership consists of 159 professional accountancy bodies in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce.