Standard Setting Highlights

INTOSAI PSC-SCJune 2017

James Gunn, Managing Director Professional Standards

Common Themes Across the SSBs

• Strategies: Impactful, Public Interest-Focused, and

Future-Oriented

• Standards: Globally Relevant, Progressive and

Durable; Responsive to Needs and Operable

• Stakeholders: Deep and Intense Dialogues,

including with Regulatory and User Communities

• Work Programs: At-capacity; Balancing Speed

and Quality; Coordination on Mutual Interest Topics

• Major New Standards: Supporting Adoption and

Proper Intended Application

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Audit, Assurance and Related Services

Activity Highlights

Skepticism – IAASB, IESBA, IAESB Working Group

Estimates, Quality Control, Risk Assessment, Group Audits – Outreach and Scoping

Auditor Reporting – Special Considerations, and Implementation Support

NOCLAR – Considering Laws and Regulations in an Audit

2016 2017-2018

Publication & IAASB-specific

initiatives

Exposure Drafts

Addressing Fundamental Elements of the Audit

High-Quality Audits in a Changing Business Environment –

Influenced by Technology, Complexity, and Demands for Continued Relevance

Quality Control at the

Engagement Level (ISA 220)

Auditing Accounting Estimates,

Including Fair Values (ISA

540)

Group Audits (ISA 600)

Risk Identification

and Assessment

(ISA 315)

Strengthening the Application of Professional Skepticism

Enhancing Firms’ Systems of Quality Control (ISQC 1)

Exploring Implications of the Changing Environment

• Technology and the Audit, with focus

on Data Analytics

• Emerging Forms of External

Reporting, including <IR>

• Agreed-Upon Procedures

Engagements, and further

exploring SME-SMP Needs

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Ethics

Achieving a Significantly Upgraded Code

Structure and Clarity of Code

Safeguards, including Non-Assurance Services

Long Association with Audit Clients

NOCLAR – Non-Compliance with Laws and Regulations

Skepticism – IAASB, IESBA, IAESB Working Group

2016 2017

IESBA-specific initiatives

Finalize

Exploring Implications of the Changing Environment

• The Code and the G20 – Studying and

documenting key differences

• Inspection Findings – Stimulating

improved data sharing

• Fees-Related Issues – Literature

review and fact-finding

• Survey released April 2017 (until 18 July)

on the Code for Rapidly Changing WorldExponential, disruptive technology

(e.g. Emergent AI, big data, cloud computing, mobile, social networks, blockchain)

Emerging or newer models of work and service delivery (e.g. contingent workforce; managed and outsourced services)

Strengthening foundational & technical areas

(e.g. “Public interest” & other key concepts and terms, documentation & communication, ISA/ISAE alignment)

Future IESBA Strategy and Work

Plan

Ethical

implications for

the Code?

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Education and Professional Competence

Activity Highlights

Continuing Professional Development (CPD) –Outreach and Scoping

IES Usage Baseline Study

Support Materials: Learning Outcomes, Entry Requirements, Professional Competence for

Audit Engagement Partners

Framework Update and IES Drafting Changes

Skepticism – IAASB, IESBA, IAESB Working Group

2016 2017

IAESB-specific initiatives

Exposure Draft

2017-2021 Strategy

• Focus on Standards Development

– Continuing Professional Development

(CPD) (Revision of IES 7)

– Professional Skepticism

– Assessment of skills & education needs

(i) information and communication technology

(ii) developments in public sector

– Post-Implementation Review of IES Suite

• Strategic Stakeholder Engagement

• Further IES Implementation Support

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Financial Reporting in the Public Sector

Enhancing IPSAS Relevance

Project Public sector specific

IFRS convergence

Social Benefits

Revenue & Non-Exchange Expenditure

Financial Instruments

Heritage

Public Sector Measurement

Infrastructure Assets

Leases

Cash Basis IPSAS (limited-scope update)

Activity Highlights

Social Benefits, Financial Instruments, Leases, Cash Basis

Public Sector Combinations, IPSAS Applicability, Updated Employee Benefits, Impairments

Inaugural CAG and Public Sector Standard Setters Forum meetings

Terms of Reference, Due Process & Working Procedures, CAG Terms of Reference

2016 2017-2018

Continuation

Final IPSASs

Revenues/Non-Exchange Expenses, Financial Instruments, Heritage, Infrastructure,

Measurement

Exposure Drafts &

Consultations

Exploring Opportunities

• European Public Sector Accounting

Standards (EPSAS) – Active

monitoring and engagement

• Growth in IPSAS Adoption– Latin

America, SE Asia, Africa, Canada

(under review), Australia (?)

Delivering the Vision:

New IPSASB Strategy and Work Plan

2019-2023 Strategy and Work Plan

PIC advice

CAG input

Public consultation 2018

Stakeholder outreach 2017

The SSB Staff Team