chartered accountants audit conference susan fraser, ca senior project manager © auasb 2008
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IAASB
• Why interested?
Australian Government & CLERP 9 ASIC Act 2001 Financial Reporting Council (FRC)
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IFAC (International Federation of Accountants)
• Composition
• Established – 30 years
• ISAs - worldwide
• SMPs/SMEs
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IAASB Direction 2009 - 2011
• Overall Objectives
• Initiatives
• Proposed Strategy Areas of focus
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IAASB Areas of Focus 2009 - 2011
• Performance Standards
• Sustainability Standard
• New Technologies
• IAPS
• Other Matters
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Strategic Direction
• What is our strategic direction, as outlined by the FRC in 2005?
Public interest Principles based audit Risk based audit approach
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Strategic Direction
• How do we achieve this? Auditing Standards [ASA] Assurance Standards [ASAE, ASRE] Guidance Statements [GS] Participate in local & international standard
setting activities
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Strategic Direction
• How does it compare with the overall IAASB strategy?
Complementary
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AUASB Work Plan
• Main Project = ASA Redrafting [ISA Clarity]
October 2007 announcement Application period Expected release date “ISA Plus” policy
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ASA Redrafting – Approach
• Use the clarified ISA as the base ASA • Change for 3 main reasons:
Legal and/or regulatory requirements Legislative instruments “Clear public interest”
Editorial and format changes
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ASA Redrafting & You
• What does this mean for you?
Yes, more change
Benefits: Alignment to International Standards [best practice] Consistent application [world-wide] Clarity of Obligation
• Settling in period [ISA]© AUASB 2008 15
ASA Redrafting - Points to note
• Timetable is dependent on IAASB schedule
• “Redrafted” v “Revised and Redrafted”
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Work Plan
• Other Projects for 2008-2009
Review of current Pronouncements “Public interest” areas Australian Regulatory changes International standard-setting activities
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Background
• “Force of Law” introduced 1 July 2006 CLERP 9 reform Codification of existing standards (AUSs) No fundamental change to audit
Requirements
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Some Issues for the Audit Profession
• Documentation
• Training
• SME – differing opinions
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Issues - Documentation
• Documentation - too little/too much/not relevant
• “If it hasn’t been documented, it hasn’t been done”
• Documentation - the key to supporting the audit opinion
• Know what you are required to document
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Issues - Training
• Audit is a specialised skill area
• Staff & Management training critical
• Your business success depends on how you train & invest in your people
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Issues - SMEs Differing Opinions
• SMEs: Size, complexity & application of accounting
and auditing standards Appropriateness of required audit
procedures & documentation levels An “Audit is an audit” principle
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Input welcome at AUASB
• AUASB technical team Background in audit
• Accessible to all
• Input and Feedback welcome
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Our Thoughts – The Future
• Trends
• Some key Drivers Business Environment Litigation Risk Regulation
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Drivers - Business Environment
• Developments Business Structures Operations Funds Technology SME space
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Conducts of Audit……The Future
• Challenges The Audit Practice
Training Recruit & Retain Communications Overload
Lobbying
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