International Federation of AccountantsInternational Federation of Accountants

International Auditing and Assurance Standards Board

Status of Clarity Project and Other Activities

INTOSAI PSC Steering Committee Meeting

October 21-22, 2008

Clarity ProjectClarity Project• Project commenced in 2004Project commenced in 2004• ObjectiveObjective

– Understandable, clear standards capable of consistent Understandable, clear standards capable of consistent applicationapplication

• Each redrafted International Standard on Auditing Each redrafted International Standard on Auditing (ISA) contains:(ISA) contains:– Objective(s) of the auditorObjective(s) of the auditor– RequirementsRequirements– Application and other explanatory materialApplication and other explanatory material

• Including public sector audit considerationsIncluding public sector audit considerations

IAASB Update

Clarity ProjectClarity Project• Public sector audit considerations developed with Public sector audit considerations developed with

assistance of:assistance of:– INTOSAI FAS experts on IAASB Task ForcesINTOSAI FAS experts on IAASB Task Forces– INTOSAI FAS Clarity Reference GroupINTOSAI FAS Clarity Reference Group– INTOSAI nominated IAASB member and technical INTOSAI nominated IAASB member and technical

advisoradvisor

IAASB Update

Clarity ProjectClarity Project• Final three ISAs to be approved by the IAASB in Final three ISAs to be approved by the IAASB in

December 2008December 2008• Consistency review in progressConsistency review in progress• PIOB due process confirmation in February 2009PIOB due process confirmation in February 2009• Project to be completed in March 2009Project to be completed in March 2009• Effective date December 15, 2009 Effective date December 15, 2009

IAASB Update

2009 Work Program2009 Work Program• Audit of financial statementsAudit of financial statements

– ISA 610 on using the work of internal auditISA 610 on using the work of internal audit– ISA 700 on auditors’ reportsISA 700 on auditors’ reports– Reporting on XBRL financial statementsReporting on XBRL financial statements

• Other assurance servicesOther assurance services– ISRE 2410 on review of financial statementsISRE 2410 on review of financial statements– ISAE 3000 on other assurance engagementsISAE 3000 on other assurance engagements– Reporting on carbon emissions informationReporting on carbon emissions information– Reporting on sustainability reportsReporting on sustainability reports– Reporting on pro forma financial statementsReporting on pro forma financial statements– Reporting on prospective financial informationReporting on prospective financial information

IAASB Update

2009 Work Program2009 Work Program• Other projectsOther projects

– Fair value audit guidanceFair value audit guidance– Review of International Auditing Practice StatementsReview of International Auditing Practice Statements– Review of implementation guidanceReview of implementation guidance– Process for impact assessmentsProcess for impact assessments– Process for effectiveness reviewProcess for effectiveness review– Audit qualityAudit quality

IAASB Update

IFAC-IAASB-INTOSAI RelationshipIFAC-IAASB-INTOSAI Relationship• Various reviews currently being conductedVarious reviews currently being conducted

– IFAC: Reform proposals – effectiveness reviewIFAC: Reform proposals – effectiveness review– IFAC: Efficiency reviewIFAC: Efficiency review– FAS: World Bank reviewFAS: World Bank review– PSC: Beyond 2010 proposalsPSC: Beyond 2010 proposals

• Proposal Proposal – Review scope and form of relationship in early 2009, Review scope and form of relationship in early 2009,

taking account of findings of reviewstaking account of findings of reviews

IAASB Update

IFAC-IAASB-INTOSAI RelationshipIFAC-IAASB-INTOSAI Relationship

• Consider scope of relationshipConsider scope of relationship– Established:Established:

• IAASB (audit but what about other assurance?)IAASB (audit but what about other assurance?)• International Public Sector Accounting Standards Board International Public Sector Accounting Standards Board

(IPSASB)(IPSASB)

– What about:What about:• International Ethics Standards Board for Accountants I International Ethics Standards Board for Accountants I

IESBA)?IESBA)?• Professional Accountants in Business (PAIB) Committee?Professional Accountants in Business (PAIB) Committee?• Implementation support?Implementation support?• News INTOSAI PSC project on quality control?News INTOSAI PSC project on quality control?

IAASB Update

KEY

ACCOUNTABILITY

OVERSIGHT

CONSULTATION/ADVICE

IFAC-IAASB-INTOSAI RelationshipIFAC-IAASB-INTOSAI Relationship

• Consider different forms of cooperationConsider different forms of cooperation– Standard setting board member / technical advisor / Standard setting board member / technical advisor /

observerobserver– IAASB staff involvement in PSC-related projectsIAASB staff involvement in PSC-related projects– PSC Subcommittee nominee involvement in IAASB-PSC Subcommittee nominee involvement in IAASB-

related projectsrelated projects– Membership of Consultative Advisory GroupMembership of Consultative Advisory Group

IAASB Update

International Federation of AccountantsInternational Federation of Accountants

www.ifac.org