“The IESBA’s Exposure Draft proposes a framework for professional accountants in deciding how best to act in the public interest when they come across an act or suspected act of non-compliance with laws and regulations, which will be highly relevant for auditors,” explained Prof. Arnold Schilder, IAASB Chairman. “The IAASB therefore believes that amendments are needed to the IAASB’s International Standards in the public interest to enable them to operate in concert with the IESBA standards and without confusion due to the many jurisdictions that utilize both.”
The focus of the Exposure Draft is proposed amendments to International Standard on AuditingTM (ISATM) 250, Consideration of Laws and Regulations in an Audit of Financial Statements, with less extensive changes proposed to seven other standards. The amendments, which are limited in nature, do not explicitly duplicate in detail all the specific requirements in the IESBA Code of Ethics for Professional AccountantsTM (the Code), as this allows for flexibility when ethical codes other than the Code are applied. Rather, the IAASB’s proposals seek to acknowledge the enhancements that will be made by the IESBA in the Code and clarify and emphasize key aspects of the IESBA’s proposals in the IAASB’s International Standards.
The IAASB’s Exposure Draft is open for comment through October 21, 2015, noted Kathleen Healy, IAASB Technical Director.
“The IAASB has issued its proposals with a 90-day comment period in hopes that stakeholders will consider them alongside the IESBA’s re-Exposure Draft,” she added. “The IAASB intends to continue to coordinate with the IESBA as both Boards move forward on this important topic.”
About the International Auditing and Assurance Standards Board (IAASB)
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IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC).
About IFAC®
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.