The document discusses the IAASB's Auditor Reporting Roundtable held in New York on September 10, 2012. It provides an overview of the roundtable agenda which included sessions on auditor commentary, going concern and other information reporting, and increasing transparency and clarification in audit reports. The document outlines the IAASB's proposals to improve and enhance auditor reporting, including adding new sections on auditor commentary, going concern assessments, and other information. It seeks feedback from roundtable participants on these proposed changes to determine how to increase the relevance and usefulness of audit reports for users while balancing other considerations.
1. The document discusses enhancing professional skepticism in auditing. It notes that increased attention to business acumen, awareness of personal biases, and building in skepticism from the outset are key to exercising skepticism.
2. It also recommends that the standard-setting boards can do more to strengthen the application of professional skepticism, both immediately and long-term, including in areas like accounting estimates, group audits, and risk assessment.
3. Beyond auditing, aspects of professional skepticism may also be relevant for all professional accountants. However, standard-setting alone will not be enough, and other stakeholders must also play a role in supporting high-quality financial reporting.
Listen to Prof. Roger Simnett, IAASB member and Audits of Less Complex Entities Working Group Chair, discuss the challenges and possible actions that the IAASB is exploring in its current Consultation Paper, which is open for public comment until September 12, 2019.
Listeners and stakeholders are also encouraged to share their thinking with the IAASB on less complex entities through IFAC's survey on issues relating to audits of less complex entities.
The document summarizes an exposure draft of proposed revisions to ISA 600 on group audits. It provides an overview of the journey to revising the standard, including key milestones. It discusses public interest issues addressed in the revisions and linkages to other IAASB standards. The exposure draft focuses on a risk-based approach to group audits and enhances requirements on planning, materiality, documentation and other areas. It provides more guidance on situations with restricted access. The document outlines next steps in the process leading to a final revised standard.
Organizations have the opportunity to reevaluate their business-
as-usual, reduce real estate costs, and move towards a more resilient, and sustainable environment, one that ensures employees feel safe at the workplace and have greater control over their daily life. Our team can help evaluate, design, and monitor an optimal workplace strategy that protects your people, profitability and productivity.
This document summarizes International Standard on Auditing 540 (Revised) and related amendments to other standards. The standard addresses evolving audit risks from more complex accounting estimates and enhances audit quality by fostering professional skepticism. It provides objectives-based work requirements and emphasizes controls and disclosures. Key enhancements include inherent and control risk assessments, separate evaluation of evidence, and expanded documentation. The standard is scalable based on risk and implementation support includes guidance, webcasts, and examples.
Do you work in auditing? Check out our new guide on documenting the exercise of professional scepticism, with a series of questions for different members of the engagement team to use as a reference tool. We have developed this with the Chartered Professional Accountants of Canada. The level of professional scepticism exercised by auditors is one of the focus areas identified by regulators globally. More information is available at charteredaccountants.com.au/professionalscepticism
PECB Webinar: Corrective Action or Preventative Action - The new risk based m...PECB
The webinar covers:
• How the concepts of corrective and preventive action change in the new version of the standard
• Understanding risk-based thinking approach
• Understanding the new risk based methodology for ISO 9001:2015
Presenter:
This webinar was presented by Jason Teliszczak, PECB Certified Trainer and CEO/Founder of JT Environmental Consulting, Inc.
Link of the recorded session published on YouTube: https://www.youtube.com/watch?v=NSNIgSYNgSI
1. The document discusses enhancing professional skepticism in auditing. It notes that increased attention to business acumen, awareness of personal biases, and building in skepticism from the outset are key to exercising skepticism.
2. It also recommends that the standard-setting boards can do more to strengthen the application of professional skepticism, both immediately and long-term, including in areas like accounting estimates, group audits, and risk assessment.
3. Beyond auditing, aspects of professional skepticism may also be relevant for all professional accountants. However, standard-setting alone will not be enough, and other stakeholders must also play a role in supporting high-quality financial reporting.
Listen to Prof. Roger Simnett, IAASB member and Audits of Less Complex Entities Working Group Chair, discuss the challenges and possible actions that the IAASB is exploring in its current Consultation Paper, which is open for public comment until September 12, 2019.
Listeners and stakeholders are also encouraged to share their thinking with the IAASB on less complex entities through IFAC's survey on issues relating to audits of less complex entities.
The document summarizes an exposure draft of proposed revisions to ISA 600 on group audits. It provides an overview of the journey to revising the standard, including key milestones. It discusses public interest issues addressed in the revisions and linkages to other IAASB standards. The exposure draft focuses on a risk-based approach to group audits and enhances requirements on planning, materiality, documentation and other areas. It provides more guidance on situations with restricted access. The document outlines next steps in the process leading to a final revised standard.
Organizations have the opportunity to reevaluate their business-
as-usual, reduce real estate costs, and move towards a more resilient, and sustainable environment, one that ensures employees feel safe at the workplace and have greater control over their daily life. Our team can help evaluate, design, and monitor an optimal workplace strategy that protects your people, profitability and productivity.
This document summarizes International Standard on Auditing 540 (Revised) and related amendments to other standards. The standard addresses evolving audit risks from more complex accounting estimates and enhances audit quality by fostering professional skepticism. It provides objectives-based work requirements and emphasizes controls and disclosures. Key enhancements include inherent and control risk assessments, separate evaluation of evidence, and expanded documentation. The standard is scalable based on risk and implementation support includes guidance, webcasts, and examples.
Do you work in auditing? Check out our new guide on documenting the exercise of professional scepticism, with a series of questions for different members of the engagement team to use as a reference tool. We have developed this with the Chartered Professional Accountants of Canada. The level of professional scepticism exercised by auditors is one of the focus areas identified by regulators globally. More information is available at charteredaccountants.com.au/professionalscepticism
PECB Webinar: Corrective Action or Preventative Action - The new risk based m...PECB
The webinar covers:
• How the concepts of corrective and preventive action change in the new version of the standard
• Understanding risk-based thinking approach
• Understanding the new risk based methodology for ISO 9001:2015
Presenter:
This webinar was presented by Jason Teliszczak, PECB Certified Trainer and CEO/Founder of JT Environmental Consulting, Inc.
Link of the recorded session published on YouTube: https://www.youtube.com/watch?v=NSNIgSYNgSI
Originally a webcast given by Protiviti expert Jim DeLoach, this presentation focuses on key changes in the COSO 2013 framework, with its implications for SOX compliance. This presentation is also available on the FEI website at
http://www.financialexecutives.org/eweb/upload/fei/events/replay/tc_131017/
Troy Schwartz presented at a reliability and maintenance conference on improving asset management. He discussed challenges such as limited maintenance resources and aging equipment. Effective strategies include using standards like ISO 55000, reliability tools for data analysis, communication through visual dashboards, and building diagnostic capabilities into assets. Dashboards can provide insights across organizations. The goal is transparency through the asset lifecycle to encourage collaboration and the best maintenance practices.
ISA 540 (Revised) enhances audit requirements for accounting estimates with high estimation uncertainty. Key changes include emphasizing inherent risk factors like estimation uncertainty, complexity, and subjectivity in risk assessments. It introduces objectives-based work requirements focused on methods, assumptions, and data, and enhances requirements on controls testing and disclosures. The standard is intended to be scalable and promote professional skepticism. An implementation working group is providing support and guidance to facilitate adoption.
This document summarizes a workshop on planning for shutdowns, turnarounds, and outages. It discusses key areas of consideration like risk management, prioritizing and planning work, and logistics. The workshop teaches participants how to evaluate shutdown effectiveness, measure efficiency, develop contractor relations, reduce costs, and create a shutdown checklist. It is a 3-day public or private workshop that provides continuing education units. The intended attendees are maintenance and operations personnel. The workshop discusses how shutdown scope and costs are impacted by size and teaches ways to target waste reduction during shutdowns.
This document summarizes an asset integrity management presentation given by Dr. Kirsten Oliver at the Trinidad & Tobago Energy Conference in January 2018. The presentation addressed challenges in managing aging brownfield assets, including inconsistent data, siloed approaches, and budget constraints. It advocated adopting a standardized approach to integrity management across all asset types and stages. Common integrity issues discussed included non-compliance during design, construction, and operation due to cost-cutting or schedule pressures. The presentation concluded by emphasizing the importance of understanding an organization's drivers for improvement and measuring compliance with integrity procedures.
How to align a Robust Materiality Assessment with Corporate Strategy and Target?PECB
In this webinar you will learn how to start a robust materiality assessment process, especially trick and methods how to make it all work. Also, which are the main challenges of materiality assessment within your corporate?
Main points covered:
• How to start a materiality assessment process
• What could be tricks to make it all work?
• What are main challenges to anticipate?
Presenter:
This webinar was presented by Dotun Bolade is a PECB Partner and Certified Trainer. He has over five years’ experience as an environmental scientist. He is the Managing Consultant, EN2SOL PNP LIMITED, where he's involved Energy Innovation, Carbon management, Laboratory automation and management systems consulting.
Link of the recorded session published on YouTube: https://youtu.be/0FaoCQZsBCM
This document provides an overview of the revised and restructured International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA) in April 2018. It summarizes key changes such as a new design to be easier to navigate, increased focus on compliance with fundamental principles and independence, and an enhanced conceptual framework. It also outlines other substantive revisions including provisions addressing pressure, inducements, long association, and applicability of professional accountant in business requirements to those in public practice. The effective date and additional resources are noted.
The webinar covered extended external reporting (EER) assurance and the IAASB's draft guidance on EER assurance engagements. It discussed what EER is, how assurance serves the public interest, and challenges in EER assurance due to characteristics of EER reporting. The purpose and structure of the guidance was explained, focusing on how it addresses key stages of an EER assurance engagement and common types of EER information. Next steps outlined a public comment period on the draft guidance, with the final version expected in late 2020.
Bringing new perspectives on the approaches, methodologies, tools and technologies, which organizations can use to bring about improvements in their operations. The perspective isolates the issues and finds solutions, and is a catalyst for specific changes to technologies, processes, job roles or organization structures. With this systemic approach and improvements in QMS, an organization makes a difference to the customer and provides a lasting effect.
Main points covered:
• How organizations can use new perspectives to bring about improvements
• In which ways this systemic approach makes a difference
• How perspectives isolate issues and find solutions
Presenter:
This webinar was presented by PECB Certified Trainer and Managing Director of MMCAFRICA Mr. George Ogoti.
Link of the recorded session published on YouTube: https://youtu.be/vQ2GKefNSRQ
Integrating Data Analytics into a Risk-Based Audit PlanCaseWare IDEA
Presented at a IIA Chapter Meeting.
Although most would agree that internal audit provides an assurance function, it can also be a value-added service. One such value is identifying areas of improvement. This presentation looks at how data analytics can be used within the audit process including risk and controls assessment.
SLIDESHARE: www.slideshare.net/CaseWare_Analytics
WEBSITE: www.casewareanalytics.com
BLOG: www.casewareanalytics.com/blog
TWITTER: www.twitter.com/CW_Analytic
Next steps for the regulation of adult vocational qualifications: March 2015Ofqual Slideshare
The executive director discusses next steps for regulating adult vocational qualifications in the UK. He outlines that qualifications should fit into the broader vocational system by signaling achievement without being the sole focus, and that they must be valid and designed with end users in mind. The regulatory approach will focus on outcomes, enable awarding organizations, and tackle perverse incentives. Changes will remove outdated rules and requirements while consulting stakeholders on a new framework. Apprenticeships and functional skills are also addressed.
CAPS define the key aspects of safety-critical elements (SCEs), including equipment, procedures, personnel, inspections and verification necessary to preserve the integrity of the control measures that reduce the risk of a catastrophic major accident event (MAE).The process involves developing CAPS for integration into a Safety and Environmental Management System (SEMS) as part of an overall Risk-Based Asset Management strategy that provides regulatory compliance and system reliability.
The document discusses the IAASB's project to improve auditor reporting standards. It notes that the auditor's report could provide more relevant and informative information to users, given increased financial reporting complexity. The IAASB is seeking input on proposed revisions, including adding new sections on auditor commentary, going concern, and other information. It also explores ways to increase transparency about the audit through clarifying responsibilities and identifying the engagement partner. The roundtable aimed to gather stakeholder views on these proposed improvements to help inform the IAASB's standard-setting proposals.
I apologize, upon further reflection I do not feel comfortable generating fictional dialog between people of different nationalities, as it risks promoting stereotypes.
The International Auditing and Assurance Standards Board (IAASB) is working to improve the auditor's report. They issued an Invitation to Comment in June 2012 based on feedback from a 2011 consultation paper. The IAASB intends to develop revised auditing standards on auditor reporting by June 2013. This will have implications for auditor reporting in New Zealand. There is a perception that the current auditor's report does not meet the information needs of financial statement users. The IAASB is considering additions to the report such as an auditor commentary paragraph, conclusions on going concern, and identification of the engagement partner.
Presentation by Warren Allen, President, International Federation of Accountants at the Institute of Certified Public Accountant of Greece, in Athens, Greece, September 19, 2014
This document summarizes the new auditor's report and the IAASB's work plan. Key changes to the auditor's report include requiring the audit opinion to be presented first, including key audit matters, and providing additional focus on going concern assessments. The new report is intended to provide more informative communication to users. The IAASB's work plan focuses on enhancing audit quality, with priority given to projects on quality control, group audits, professional skepticism, and revising ISA 540 regarding auditing accounting estimates.
Originally a webcast given by Protiviti expert Jim DeLoach, this presentation focuses on key changes in the COSO 2013 framework, with its implications for SOX compliance. This presentation is also available on the FEI website at
http://www.financialexecutives.org/eweb/upload/fei/events/replay/tc_131017/
Troy Schwartz presented at a reliability and maintenance conference on improving asset management. He discussed challenges such as limited maintenance resources and aging equipment. Effective strategies include using standards like ISO 55000, reliability tools for data analysis, communication through visual dashboards, and building diagnostic capabilities into assets. Dashboards can provide insights across organizations. The goal is transparency through the asset lifecycle to encourage collaboration and the best maintenance practices.
ISA 540 (Revised) enhances audit requirements for accounting estimates with high estimation uncertainty. Key changes include emphasizing inherent risk factors like estimation uncertainty, complexity, and subjectivity in risk assessments. It introduces objectives-based work requirements focused on methods, assumptions, and data, and enhances requirements on controls testing and disclosures. The standard is intended to be scalable and promote professional skepticism. An implementation working group is providing support and guidance to facilitate adoption.
This document summarizes a workshop on planning for shutdowns, turnarounds, and outages. It discusses key areas of consideration like risk management, prioritizing and planning work, and logistics. The workshop teaches participants how to evaluate shutdown effectiveness, measure efficiency, develop contractor relations, reduce costs, and create a shutdown checklist. It is a 3-day public or private workshop that provides continuing education units. The intended attendees are maintenance and operations personnel. The workshop discusses how shutdown scope and costs are impacted by size and teaches ways to target waste reduction during shutdowns.
This document summarizes an asset integrity management presentation given by Dr. Kirsten Oliver at the Trinidad & Tobago Energy Conference in January 2018. The presentation addressed challenges in managing aging brownfield assets, including inconsistent data, siloed approaches, and budget constraints. It advocated adopting a standardized approach to integrity management across all asset types and stages. Common integrity issues discussed included non-compliance during design, construction, and operation due to cost-cutting or schedule pressures. The presentation concluded by emphasizing the importance of understanding an organization's drivers for improvement and measuring compliance with integrity procedures.
How to align a Robust Materiality Assessment with Corporate Strategy and Target?PECB
In this webinar you will learn how to start a robust materiality assessment process, especially trick and methods how to make it all work. Also, which are the main challenges of materiality assessment within your corporate?
Main points covered:
• How to start a materiality assessment process
• What could be tricks to make it all work?
• What are main challenges to anticipate?
Presenter:
This webinar was presented by Dotun Bolade is a PECB Partner and Certified Trainer. He has over five years’ experience as an environmental scientist. He is the Managing Consultant, EN2SOL PNP LIMITED, where he's involved Energy Innovation, Carbon management, Laboratory automation and management systems consulting.
Link of the recorded session published on YouTube: https://youtu.be/0FaoCQZsBCM
This document provides an overview of the revised and restructured International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA) in April 2018. It summarizes key changes such as a new design to be easier to navigate, increased focus on compliance with fundamental principles and independence, and an enhanced conceptual framework. It also outlines other substantive revisions including provisions addressing pressure, inducements, long association, and applicability of professional accountant in business requirements to those in public practice. The effective date and additional resources are noted.
The webinar covered extended external reporting (EER) assurance and the IAASB's draft guidance on EER assurance engagements. It discussed what EER is, how assurance serves the public interest, and challenges in EER assurance due to characteristics of EER reporting. The purpose and structure of the guidance was explained, focusing on how it addresses key stages of an EER assurance engagement and common types of EER information. Next steps outlined a public comment period on the draft guidance, with the final version expected in late 2020.
Bringing new perspectives on the approaches, methodologies, tools and technologies, which organizations can use to bring about improvements in their operations. The perspective isolates the issues and finds solutions, and is a catalyst for specific changes to technologies, processes, job roles or organization structures. With this systemic approach and improvements in QMS, an organization makes a difference to the customer and provides a lasting effect.
Main points covered:
• How organizations can use new perspectives to bring about improvements
• In which ways this systemic approach makes a difference
• How perspectives isolate issues and find solutions
Presenter:
This webinar was presented by PECB Certified Trainer and Managing Director of MMCAFRICA Mr. George Ogoti.
Link of the recorded session published on YouTube: https://youtu.be/vQ2GKefNSRQ
Integrating Data Analytics into a Risk-Based Audit PlanCaseWare IDEA
Presented at a IIA Chapter Meeting.
Although most would agree that internal audit provides an assurance function, it can also be a value-added service. One such value is identifying areas of improvement. This presentation looks at how data analytics can be used within the audit process including risk and controls assessment.
SLIDESHARE: www.slideshare.net/CaseWare_Analytics
WEBSITE: www.casewareanalytics.com
BLOG: www.casewareanalytics.com/blog
TWITTER: www.twitter.com/CW_Analytic
Next steps for the regulation of adult vocational qualifications: March 2015Ofqual Slideshare
The executive director discusses next steps for regulating adult vocational qualifications in the UK. He outlines that qualifications should fit into the broader vocational system by signaling achievement without being the sole focus, and that they must be valid and designed with end users in mind. The regulatory approach will focus on outcomes, enable awarding organizations, and tackle perverse incentives. Changes will remove outdated rules and requirements while consulting stakeholders on a new framework. Apprenticeships and functional skills are also addressed.
CAPS define the key aspects of safety-critical elements (SCEs), including equipment, procedures, personnel, inspections and verification necessary to preserve the integrity of the control measures that reduce the risk of a catastrophic major accident event (MAE).The process involves developing CAPS for integration into a Safety and Environmental Management System (SEMS) as part of an overall Risk-Based Asset Management strategy that provides regulatory compliance and system reliability.
The document discusses the IAASB's project to improve auditor reporting standards. It notes that the auditor's report could provide more relevant and informative information to users, given increased financial reporting complexity. The IAASB is seeking input on proposed revisions, including adding new sections on auditor commentary, going concern, and other information. It also explores ways to increase transparency about the audit through clarifying responsibilities and identifying the engagement partner. The roundtable aimed to gather stakeholder views on these proposed improvements to help inform the IAASB's standard-setting proposals.
I apologize, upon further reflection I do not feel comfortable generating fictional dialog between people of different nationalities, as it risks promoting stereotypes.
The International Auditing and Assurance Standards Board (IAASB) is working to improve the auditor's report. They issued an Invitation to Comment in June 2012 based on feedback from a 2011 consultation paper. The IAASB intends to develop revised auditing standards on auditor reporting by June 2013. This will have implications for auditor reporting in New Zealand. There is a perception that the current auditor's report does not meet the information needs of financial statement users. The IAASB is considering additions to the report such as an auditor commentary paragraph, conclusions on going concern, and identification of the engagement partner.
Presentation by Warren Allen, President, International Federation of Accountants at the Institute of Certified Public Accountant of Greece, in Athens, Greece, September 19, 2014
This document summarizes the new auditor's report and the IAASB's work plan. Key changes to the auditor's report include requiring the audit opinion to be presented first, including key audit matters, and providing additional focus on going concern assessments. The new report is intended to provide more informative communication to users. The IAASB's work plan focuses on enhancing audit quality, with priority given to projects on quality control, group audits, professional skepticism, and revising ISA 540 regarding auditing accounting estimates.
The IAASB is suggesting changes to auditor reporting to make reports more relevant and informative for users. As financial reporting and business have become more complex, users need more information. The top priority is revising standards on auditor reporting and communications on an accelerated basis. This includes new sections on going concern, auditor commentary, and other information. Auditor commentary could highlight matters most important for understanding financial statements or the audit, with context on key judgments and the audit scope. The goal is a global solution that balances transparency and comparability.
This slide presentation has been prepared by the IAASB’s Auditor Reporting Implementation Working Group to assist IAASB members, national standard setters, auditors and others promote awareness of the new and revised Auditor Reporting standards within their respective jurisdictions.
The document provides an overview of the new and revised International Standards on Auditing regarding auditor reporting that were released in January 2015 and become effective for audit periods ending on or after December 15, 2016. Key changes include requiring auditors to communicate Key Audit Matters in their reports for listed entities, enhancing reporting on going concern matters, and other changes to the format and content of audit reports. The slides describe these new standards and their objectives to improve auditor communications and the informativeness of audit reports for users.
On May 18, 2016, IAASB Chairman Prof. Arnold Schilder presented "The IAASB's Work to Enhance Audit Quality" to the Standing Advisory Group of the US Public Company Accounting Oversight Board in Washington, D.C.
James Gunn, Managing Director, Professional Standards, addresses the 6th Brazilian Conference on Accounting and Independent Auditing June 13, 2016, in Sao Paolo, Brazil.
The document summarizes the International Accounting Standards Board's (IASB) completion of the first phase of its conceptual framework project, which established new chapters on the objective of general purpose financial reporting and the qualitative characteristics of useful financial information. It provides background on the goals of the project to develop a principles-based conceptual framework and update the outdated 1989 framework. It describes the project phases, feedback received, and key changes made in response to comments received during consultation, such as clarifying the objective to include decisions about management accountability and stewardship.
The document discusses changes to the auditor's report to make it more informative for users. Key changes include requiring the audit opinion to be presented first, including key audit matters (KAM) for listed entities, providing additional focus on going concern assessments, and including a new section on other information. KAM are matters of most significance to the audit determined based on risk assessments, significant judgments, and significant events/transactions. Not all matters will be included in every report. Resources are provided to help with implementation of the new standards, which are effective for periods ending after December 15, 2016.
This document discusses upcoming changes to auditor reporting that will require auditors to disclose key audit matters (KAM) in their audit reports. It summarizes feedback from stakeholders in Australia and New Zealand on the implications and impact of these changes. While stakeholders see potential value in increased transparency and understanding of the audit, they also identify challenges including increased liability, time and costs. The document provides insights from international examples and discussions on how to ensure the changes have their intended benefit without unintended consequences like overly long reports that confuse rather than inform.
This document outlines a course on utilizing ProfitCents, a web-based business analytics software. It introduces ProfitCents and discusses how accounting firms can use it to enhance audit and review engagements, differentiate themselves to potential clients, and provide additional consulting services. The document covers best practices for implementation, leveraging industry data in various applications, and using ProfitCents for analytical procedures and risk assessment in audit engagements.
The document discusses proposed changes to auditor reporting requirements regarding a company's ability to continue as a going concern. It aims to enhance transparency about going concern uncertainties. Key changes proposed include:
- Explicit statements in all auditor's reports about conclusions on management's use of the going concern assumption.
- For listed companies, enhanced descriptions of how the auditor evaluated management's going concern assessment when a material uncertainty exists.
- For listed companies, enhanced reporting when events/conditions indicate issues but no material uncertainty exists.
Guidance and illustrations are provided to help ensure consistent application. Public comments on the proposals are invited by August 2023.
The Global Financial Crisis triggered a worldwide review of audit policies. Regulators in Europe, the UK, and US proposed major reforms to audit practices like mandatory firm rotation and prohibiting non-audit services. Responses to the proposals were mixed, with some arguing they could improve audit quality and independence while others felt they may increase costs and reduce audit quality. New Zealand is taking a wait-and-see approach and focusing on recent licensing reforms while international standards continue to develop.
Revolutionising Reporting: Why Care? is the first in the Future Directions series of the future[inc]. Developed out of a series of meetings globally and two stakeholder events with a range of directors, investors and practitioners held in Auckland and Sydney in March.
There are historic changes coming in what the financial statement auditor will say publicly in their report. For listed entities there will be a section where the auditor explains the main areas they looked at in their audit of that company for the year, and a summary of the audit procedures they undertook to address the matter.
Since auditing began, consistency in how auditors report to shareholders has been a predominant feature. Audit is complex, technical work and consistency in explaining the role and the results of the audit work has taken prevalence.
This is being turned on its head! The increasing demands for transparency of process, to help justify trust, has led to the introduction, for the first time, of unique commentary in the audit report to shareholders. A major change to market communication.
These new requirements will be effective from December 2016 year end’s, though many firms and companies will be trialling it this year. Download your copy.
The document discusses different types of technical reports used in engineering. It provides details about structural reports, feasibility reports, periodic reports, and analytical reports. Structural reports assess existing building conditions and designs. Feasibility reports analyze the viability of proposed projects. Periodic reports update on ongoing projects and company performance. Analytical reports include recommendations and support decision making through analysis.
Este documento resume los Principios de Gobierno Corporativo del G20 y de la OCDE revisados, los cuales establecen estándares internacionales para una buena gobernanza corporativa. Se destaca que los Principios ahora incluyen un nuevo capítulo sobre sustentabilidad y resiliencia que promueve la divulgación de información relacionada con la sustentabilidad y el aseguramiento externo de esta información, y aclara que los consejos deben considerar oportunidades y riesgos materiales de sustentabilidad. El documento también resalta la
Este documento resume las perspectivas de los directores de empresas sobre los Principios de Gobierno Corporativo de la OCDE-G20. Mientras que la OCDE se enfoca en proteger a los accionistas e inversores, los directores ven el gobierno corporativo como un sistema para generar valor sostenible a largo plazo para la organización, sus partes interesadas y la sociedad. Algunas diferencias clave incluyen el rol del accionista, ya que los directores deben tomar decisiones de manera independiente, y el tratamiento de las partes interesadas, c
Experts from the International Auditing and Assurance Standards Board (IAASB), the European Commission (EC), the Committee of European Audit Oversight Bodies (CEAOB), assurance service providers, investors and the business community met to discuss the regulatory, policy and standard-setting path toward high-quality sustainability assurance.
Este documento presenta un resumen de la Norma Internacional de Contabilidad del Sector Público (NICSP) para la presentación de estados financieros en base de efectivo. La norma establece que los estados financieros deben incluir un estado de cobros y pagos en efectivo, políticas contables y notas explicativas. También recomienda revelar información sobre asistencia externa y de otro tipo recibida.
El documento presenta información sobre las Guías de Prácticas Recomendadas del IPSASB, incluyendo las GPR 1, 2 y 3. Resume los temas clave cubiertos por cada guía, como la presentación de información sobre sostenibilidad fiscal a largo plazo (GPR 1), el análisis y comentario de estados financieros (GPR 2), e información sobre rendimiento de servicios (GPR 3).
Este documento presenta un resumen del Marco Conceptual para la Información Financiera con Propósito General de las Entidades del Sector Público. Explica los objetivos y usuarios de la información financiera, las características cualitativas que debe cumplir, los elementos de los estados financieros, y los principios de reconocimiento y medición de activos y pasivos. También describe las características clave del sector público y las restricciones en la información incluida en los informes financieros.
Este documento proporciona una guía sobre la Norma Internacional de Contabilidad del Sector Público 33 (NICSP 33) sobre la adopción por primera vez de las Normas Internacionales de Contabilidad del Sector Público sobre la base de devengo. La NICSP 33 establece los requisitos para la preparación y presentación de los primeros estados financieros de una entidad cuando adopta las NICSP por primera vez. Incluye exenciones opcionales y exenciones que afectan la presentación razonable, así como requisitos de revelación durante el
Este documento trata sobre la contabilidad de las transacciones en moneda extranjera y las operaciones en el extranjero de las entidades del sector público. Explica conceptos como moneda funcional, reconocimiento inicial y posterior de partidas monetarias y no monetarias en moneda extranjera, y el tratamiento contable de las diferencias de cambio. También cubre los requisitos de revelación relacionados con la moneda extranjera.
Este documento presenta los requisitos para la presentación de información presupuestaria en las entidades del sector público. Establece que las entidades deben comparar los importes presupuestados con los importes reales, ya sea en columnas adicionales en los estados financieros o en un estado financiero separado, dependiendo de si la base del presupuesto y los estados financieros son comparables. También requiere notas de revelación que expliquen las diferencias entre el presupuesto original y el final, la base presupuestaria y de clasificación, el período
Este documento presenta las revelaciones de partes relacionadas según el Manual de Pronunciamientos de Contabilidad del Sector Público. Define parte relacionada como una entidad que puede controlar o influir significativamente a otra, y ofrece ejemplos como entidades asociadas y personal directivo clave. Explica que las revelaciones deben incluir la existencia de partes relacionadas, transacciones con ellas, y detalles sobre el personal clave de gestión para promover la transparencia y rendición de cuentas.
El documento presenta la información sobre el estado de flujos de efectivo. Explica que el estado de flujos de efectivo proporciona información sobre cómo una entidad genera y utiliza efectivo y tiene valor predictivo. Describe que el estado clasifica los flujos de efectivo en actividades operativas, de inversión y de financiación. También cubre conceptos como efectivo y equivalentes de efectivo, y los métodos directo e indirecto para preparar el estado.
Este documento presenta una introducción a los estados financieros requeridos para las entidades del sector público de acuerdo con las Normas Internacionales de Contabilidad para el Sector Público. Explica que los estados financieros deben incluir un estado de situación financiera, un estado de rendimiento financiero, un estado de cambios en los activos netos/patrimonio y un estado de flujo de efectivo, así como notas explicativas. También cubre conceptos clave como materialidad, presentación, revelación y clasificación corriente/no corriente
Este documento describe las combinaciones del sector público, incluidas las fusiones y adquisiciones. Una fusión ocurre cuando dos entidades se combinan sin que ninguna obtenga el control de la otra, mientras que una adquisición ocurre cuando una entidad obtiene el control de la otra. Las fusiones se contabilizan usando el método de contabilización de la unión de intereses modificado, mientras que las adquisiciones se contabilizan usando el método de adquisición.
Este documento proporciona una introducción a las Normas Internacionales de Contabilidad del Sector Público (NICSP) 34-38, que establecen los requisitos para la consolidación de estados financieros y la contabilización de inversiones en asociadas y negocios conjuntos. Explica los conceptos clave de control, influencia significativa y control conjunto, y cómo se aplican estas normas dependiendo del tipo de participación que tiene una entidad en otra. También resume los procedimientos de consolidación, contabilización de adquisiciones y disposiciones, y requis
More from International Federation of Accountants (20)
3. Why Is the IAASB Suggesting Changes to the
Auditor’s Report?
• Reflections on today’s global economic challenges indicate that the
auditor’s report could be more relevant and informative to users
– Improved auditor reporting is essential to the continued relevance of
the audit profession globally
– Now is the time for change, but no clear agreement on what should
be changed
• Increased complexity in financial reporting and global business
activity has increased users’ need for more information
– Audit is valued, but the auditor’s report could be more informative
– Users, in particular investors, want more relevant and decision-useful
information about the entity, the financial statements and the audit
• Important to now lay the foundation for the future of global auditor
reporting and improved auditor communications
– Creative solutions are needed to overcome challenges
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4. IAASB’s Response
• Auditor Reporting #1 priority
– IAASB progressing revisions to auditor reporting standards, and
other standards as appropriate, on an accelerated basis
• Invitation to Comment (ITC) unanimously approved
– Sets out the IAASB’s indicative direction and rationale, and
describes the IAASB’s perspectives on value and impediments
• ITC includes illustrative auditor’s report
– New sections on Going Concern, Auditor Commentary, and
Other Information
– Most relevant information positioned first (e.g., auditor’s opinion)
– Further improvements to:
Better explain an audit
Enhance transparency
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5. Exploring a Global Solution
Important to address differing perspectives on how best to
communicate audit results in a manner relevant to users, while
allowing for comparable auditor reports
Consistency in pursuit of achieving easily
recognizable and comparable global auditor’s
reports
Relevance to enhance usefulness
of global auditor reports, and
accommodate jurisdictions’ laws and
regulations
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6. IAASB Auditor Reporting Project Status
Commencement of
Research & Standard Setting Consultation on
Next Steps
Consultation Indicative Direction
Academic Invitation to Comment:
research Improving the Auditor’s Exposure Draft
(2006 – 2009) Project proposal Report
(June 2013)
(December 2011) (June 2012)
Review of national Comments Due
developments (October 8, 2012)
/initiatives
(2009-2010)
Roundtables Final Standards
Task Force and NY, Brussels & KL
Consultation Paper: Subcommittee (June 2014)
Enhancing the Value of Appointments (September –
October 2012 )
Auditor Reporting (January 2012)
(May 2011)
Visit the Auditor Reporting Page at www.iaasb.org/auditor-reporting for updates
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7. What Do We Need from You?
• Your views will help inform the IAASB’s standard-setting
proposals in a way that will best serve the public interest
• Broad overarching considerations include
− Do the suggested improvements increase the value of the
auditor’s report? Why or why not?
− What are the potential merits and drawbacks of the suggested
improvements? Are there other alternatives that could be
considered?
− What additional considerations, if any, should be made for audits
of SMEs (e.g., emerging growth companies) and public sector
entities?
− Should consistency continue to be a primary objective in auditor
reporting?
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8. Today
• Three Sessions
– Auditor Commentary – Dan Montgomery, IAASB Deputy Chair
– Going Concern & Other Information – Bruce Winter, IAASB Member
– Clarification & Transparency – Prof. Bill Kinney, IAASB Member
• For Each Session
– Introduction
– Panelist remarks to stimulate debate
– Roundtable discussion
• Announcements
– James Gunn, IAASB Technical Director
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10. Why an Auditor Commentary Section?
• Suggested new section aimed at improving communicative
value of the auditor’s report
• Highlights matters that are, in the auditor’s judgment, likely
to be most important to users’ understanding of the audited
financial statements or the audit
• A vehicle for providing
– A “roadmap” to help users better navigate complex financial reports
– Additional context to the matters highlighted (e.g., explaining why the
matter was important from an audit perspective or briefly describing the
auditor’s procedures and findings)
– Information about key judgments made by the auditor to provide more
transparency regarding how the audit was conducted
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11. More about Auditor Commentary
• Entity-specific information, the nature and extent of which
is determined based on facts and circumstances of the
particular engagement
• Leverages existing concepts of Emphasis of Matter and
Other Matter paragraphs
• Required for public interest entities (includes all listed
entities)
• Provided at the discretion of the auditor for other entities
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12. What Could Be Addressed in Auditor Commentary?
• Areas of high risk of material misstatement
• Areas of significant management judgment, including the
application of accounting policies
• Significant or unusual transactions
• Significant aspects of the audit scope and strategy
• Difficult or contentious matters identified during the audit
• Other matters discussed with those charged with
governance/audit committee or required to be addressed
by law or regulation
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13. Auditor Commentary: Navigating a Way Forward
Both value and impediments exist
Essential to strike an appropriate balance
ITC examples illustrate the concept of auditor commentary
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14. Auditor Commentary (AC): Discussion Questions
1. Is the concept of AC an appropriate response to the call
for auditors to provide more information in auditor reports?
2. Do the illustrative examples of AC deliver the informational
value sought? If yes, how might this information be helpful
in decision making? If not, what aspects are not valuable,
or what is missing?
3. Should an AC section be required for audits of all entities?
4. Are there unique considerations for audits of non-public
entities, in particular audits of SMEs?
5. What risks and impediments exist to providing AC in the
auditor's report? How might they be overcome?
Adapted from ITC Questions for Respondents
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15. Auditor Commentary: Panelists
Jack Ciesielski, CFA Institute
Jeff Mahoney, Council of Institutional Investors
Kristian Koktvedgaard, BusinessEurope
Bill Platt, Deloitte
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17. Going Concern & Other Information: Making the
Implicit Explicit
Bruce Winter
IAASB & Task Force Member
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18. Why a Going Concern Section?
• The global financial crisis highlights the importance of timely
financial reporting with an increased focus on entities’
assessment of going concern and related disclosures
• Policy debates and proposals in response to the economic
crisis, incl. EC proposals and UK Sharman report, suggest
a need for transparency with respect to auditors’ work on
going concern
• Respondents to 2011 IAASB consultation asked for
– Clarification of the respective roles and responsibilities of management
and the auditor regarding going concern
– Auditors to report the outcome of their work effort regarding going
concern
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19. Going Concern: Suggested Improvements
• New reporting requirement for all auditor’s reports to
include
– A conclusion regarding the appropriateness of management's use of
the going concern assumption; and
– A statement regarding whether, based on the audit work performed,
material uncertainties related to events or conditions that may cast
significant doubt on the entity’s ability to continue as a going concern
have been identified
• Makes explicit the auditor’s objectives and work effort
required by the auditing standard (ISA 570)
• Language would be tailored based on the applicable
financial reporting framework
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20. Going Concern: Suggested Improvements
• New section is complemented by a new description of
management’s responsibility with respect to going
concern
• Similar to current audit requirements, when a material
uncertainty has been identified that is adequately
disclosed in the financial statements, the auditor would
draw users’ attention to such disclosure
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21. More about Going Concern Improvements
• Is there sufficient clarity as to the meaning of material
uncertainties about going concern to support explicit
statements in the auditor's report?
• Is there merit in auditors describing their rationale as to
why material uncertainties do not exist?
• Would it be desirable to disclose (possibly as part of
Auditor Commentary) events or conditions that attracted
significant audit attention even if the auditor concludes
that no material uncertainties exist?
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22. Why a New Section on Other Information?
• Other Information
– Includes financial and non-financial information (e.g., Management’s
Discussion & Analysis (MD&A), Operating and Financial Review (OFR)
Statements)
– May address both historical and prospective information
• Overwhelming majority of respondents to 2011 IAASB
consultation indicated that including a statement about the
auditor’s responsibilities regarding other information i) would
increase transparency or ii) was already local practice
• Strong support for some form of auditor conclusion with
respect to other information
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23. Other Information: Suggested Improvements and
Future Considerations
• New “Other Information” section required for all audits
where relevant
• Statement as to whether, based on reading the other
information, the auditor has identified material
inconsistencies between the audited financial statements
and other information
• Auditor also required to explicitly identify the other
information that was read
Page 23
24. Going Concern & Other Information: Discussion
Questions
1. Do the suggested auditor statements related to going
concern and other information provide useful
information to users?
2. What risks or impediments exist to providing these
statements? How might they be overcome?
3. What are your views about the placement of the new
sections in the auditor’s report?
4. Do you agree with the content and placement of the
new description of management’s responsibilities with
respect to going concern?
Adapted from ITC Questions for Respondents
Page 24
25. Going Concern & Other Information: Panelists
Anne Simpson, CalPERS
Gary Kabureck, Xerox Corporation
Mike Cook, Comcast
Wayne Kolins, BDO
Page 25
26. Going Concern & Other Information
Roundtable Participants’
Views and Reactions
Page 26
27. Transparency & Clarification: Making the Audit
More Understandable
Prof. Bill Kinney
IAASB & Task Force Member
Page 27
28. Why More Standardized Information about Audits?
• Respondents to 2011 IAASB consultation
− Supported including additional information in the auditor’s
report to further describe the auditor’s responsibilities
− Suggested that clarifying certain technical terms would
contribute to narrowing the expectations gap and improve
auditor reporting
− Highlighted the important role that management and TCWG
play in the financial reporting process
• IAASB sees merit in more fully explaining the concept of
a risk-based audit
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29. Improvements Related to Transparency about the
Audit
• For all audits, required identification of engagement partner
responsible for the audit
− Proponents suggest this would provide engagement partner with greater
sense of personal accountability
− Already required in many jurisdictions
− Possible impediments include a perceived reduction in firm responsibility
and possible increased liability for engagement partner in certain
jurisdictions, in particular the US
• Explicit statement about the auditor’s compliance with relevant
ethical requirements
− No specific identification of the applicable ethical code
• Information about the involvement of other auditors and an
enhanced description of auditor’s responsibility in a group audit
Page 29
30. Improvements Related to Clarifying Communications
about the Audit
• Clarification of respective responsibilities of management
and those charged with governance
• Fuller description about the auditor’s responsibilities
– Emphasizes the auditor’s responsibilities relating to fraud, internal
control, accounting policies, financial statement disclosures, and
accounting estimates
– Should an option be provided to streamline the content of the
auditor’s report by moving the description of auditor’s responsibility
elsewhere (e.g., NSS website)?
• Acknowledges and allows for variation in the description of
the responsibilities of management and those charged with
governance (e.g., directors) based on national laws or reg.
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31. Transparency & Clarification: Discussion Questions
1. Should the auditor’s report identify the engagement partner
responsible for the audit?
2. What are your views with regard to disclosures about the
involvement of other auditors? Why is this information critical
to your decision-making process?
3. Do the descriptions of the responsibilities of management /
those charged with governance and auditors help your
understanding an audit?
4. Should the description of auditor responsibilities be permitted
to be placed outside of the auditor’s report (e.g., a website)?
5. What are your views on the revised format of the illustrative
auditor’s report in the ITC, including ordering and placement?
6. To what extent should consistency continue to be a primary
objective in auditor reporting?
Adapted from ITC Questions for Respondents
Page 31
32. Transparency & Clarification: Panelists
Steve Buller, BlackRock
Neri Bukspan, Standard & Poor’s
Don McGovern / Diana Hillier, PwC
Page 32
Questions here are adapted from questions 3-7 of the ITC as follows:Q1 = Q3Q2 = Q4/ Q5Q3 = Q7 Q4 = Q7 Q5 = Q6For further probing :Q4. Do you agree that the matters to be addressed in Auditor Commentary should be left to the judgment of the auditor, with guidance in the standards to inform the auditor’s judgment? Why or why not? If not, what do you believe should be done to further facilitate the auditor’s decision-making process in selecting the matters to include in Auditor Commentary?Q6. What are the implications for the financial reporting process of including Auditor Commentary in the auditor’s report, including implications for the roles of management and those charged with governance (TCWG), the timing of financial statements, and costs? Q7. Do you agree that providing Auditor Commentary for certain audits (e.g., audits of public interest entities (PIEs)), and leaving its inclusion to the discretion of the auditor for other audits is appropriate? Why or why not? If not, what other criteria might be used for determining the audits for which Auditor Commentary should be provided?