Forum for Training ProvidersISA Implementation Issues

Martyn Jones

12 October 2007

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Key points

• Ultimately what matter are effective audits

• Successful ISA implementation is key

• Much further change can be expected

• We cannot afford to be complacent

• .This is intended to be two way communication

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Increased litigation risk and reputation

Pace of change continues to increase

Benign economy may be ending

Background

Professions are under increasing scrutiny

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Move from SASs to ISAs (UK and Ireland)

Convergence paths to IFRSs/

APB Ethical Standards

Shift to clarified and revised ISAs/Timetable for

further change

Increased emphasis on audit quality

and training

Background

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More independent regulation

Regulatory issues

Increased oversight nationally and internationally

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Learning methods/

Coping with change

Quality of intake/Retention of best

people

People issues

Sufficiency of learning

Availability of time

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How should trainers train themselves?

Technology issues

Is more explanation needed

of new ISAs?

Examination, supervision and

CPD issues

People issues (continued)

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Time spent in audit room

versus actually auditing

Extent of audit documentation particularly for

SMEs

Audit issues

Regulatory impact

assessment

Detecting fraud/

Problem ISAs?

Nature and extent of D&I

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The new elephant in the room – subprime contagion

Other audit issues

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Convergence

Smaller companies

Other audit issues

The auditor offence

Increasing level of mandation

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Timing Ethics

Regulatory comment

Audit stakeholders

Other developments

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Possible obstacles to effective implementation

• Issues affecting different sized firms

• Practicalities

• Unintended consequences

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For you to consider and let us know

Possible solution

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Today’s next steps

• Jon Grant

• Trevor Smith and Lesley Clarke

• Jon Grant (again)

• Break out sessions

• Plenary and wrap up (me again)

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