The document outlines the IAASB's efforts to improve audit quality and global adoption of International Standards on Auditing (ISAs), addressing challenges and regulatory attention. Key initiatives include the Clarity Project, new auditor reporting standards, and a framework for audit quality that emphasizes stakeholder roles. Ongoing projects aim to adapt ISAs to the complexities of the modern business environment and meet public expectations.

1. Page 1
Standard Setting in the Public
Interest – IAASB Milestones
Prof. Arnold Schilder, IAASB Chairman
Public Interest Oversight Board's 10th Anniversary Seminar
Madrid, Spain
September 30, 2015

2. Page 2
• Holistic response to heightening regulatory attention to audit
quality, and challenges in implementing global standards
• Clarity project a key backdrop to robust 2003 reforms
• Objectives
– Improve understandability of ISAs and eliminate ambiguity
– Enhance quality of auditor performance
– Improve relevance and applicability to SME
– Facilitate global adoption
• Comprehensive revision and redrafting of ISAs
• Implementation Monitoring Review: confirmed that Clarity
Project in essence achieved its objectives
1. Clarified ISAs – Finalized 2009

3. Page 3
Global Adoption of Clarified ISAs
Jurisdictions Using Clarified ISAs Already, or Committed to Using Them in the
Near Future (110)
Europe (41): Albania, Armenia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia,
Cyprus, Czech Republic, Denmark, Estonia, Finland, France (Experts Comptables), FYR
Macedonia, Georgia, Greece, Hungary, Iceland, Ireland, Italy, Kosovo, Latvia, Lithuania,
Luxembourg, Malta, Moldova, Montenegro, Netherlands, Norway, Poland, Romania, Russia,
Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom
Americas (20): Argentina, Bahamas, Barbados, Brazil, Canada, Cayman Islands, Chile,
Colombia, Costa Rica, El Salvador, Guatemala, Guyana, Jamaica, Mexico, Nicaragua, Panama,
Puerto Rico (private companies), Trinidad and Tobago, Uruguay, USA (private companies)
Asia and Oceania (22): Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan,
Kazakhstan, Kyrgyz Republic, Malaysia, Mongolia, Nepal, New Zealand, Pakistan, Papua New
Guinea, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Uzbekistan (listed entities),
Vietnam
Africa/Middle East (27): Bahrain, Benin, Botswana, Ghana, Jordan, Kenya, Kuwait, Lebanon,
Lesotho, Malawi, Mali, Mauritius, Namibia, Nigeria, Palestine, Rwanda, Senegal, Sierra Leone,
South Africa, Swaziland, Tanzania, Togo, Tunisia, Uganda, United Arab Emirates (Abu Dhabi and
Dubai), Zambia, Zimbabwe

4. Page 4
2. New Auditor Reporting: A Response to User Needs
– 2015
• New and Revised ISAs determine the future of global
auditor reporting and improved auditor communications
• Essential to the continued relevance of the audit
profession globally
– Audit opinion is valued, but the auditor report can be more
informative
– Users want more relevant and decision-useful information
about the entity and the financial statements audit
 Key Audit Matters, Going Concern, etc.
• Adoption progressing, e.g. Europe, South Africa,
Australia, Singapore

5. Page 5
3. Framework for Audit Quality – 2014
• Primary responsibility for
performing quality audits
rests with auditors, but …
• Each stakeholder plays an
important role supporting
high-quality financial
reporting
• Audit quality is best
achieved in an environment
where there is support from
other participants in the
financial reporting supply
chain
• Increased interaction is
promoted in the Framework
for Audit Quality
Audit Quality Interactions

6. Page 6
4. New Projects – 2015…

7. Page 7
• The ISAs need to better address increasing
complexity and new technologies in the business
and audit environment, and deliver against the
public’s heightening expectations of quality
• The profile of tomorrow’s auditor is a critical
challenger, supported by a regime focused on
public interest and quality management, and well
observable for stakeholders
• Strong call for active dialogue with all kinds of
stakeholders (ITC – December 2015)
Key Public Interest Areas to Address

8. www.iaasb.org