On 2 March 2009, following a period of consultation, the Auditing Practices Board (APB) announced its intention to update its auditing standards for the new, clarified, International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB).
APB has this week issued for public comment exposure drafts of:
- 33 Clarified ISAs (UK and Ireland);
- Clarified International Standard on Quality Control (UK and Ireland) 1 (ISQC (UK and Ireland) 1); and
- A revised Statement of the Scope and Authority of APB Pronouncements.
The period for comment ends on 22 July 2009. When finalised, the new standards will replace the existing ISAs (UK and Ireland) and ISQC (UK and Ireland) 1 with effect for audits of financial statements for periods ending on or after 15 December 2010.
The proposed clarified ISAs (UK and Ireland) and ISQC (UK and Ireland) adopt the clarified ISAs and ISQC as issued by the IAASB with some proposed supplementary requirements and guidance, highlighted with grey shading, that APB considers necessary to:
- Address specific UK and Irish legal and regulatory requirements;
- Provide other guidance relating to legal and regulatory matters relevant to an audit; and
- Maintain a small number of other current APB requirements and guidance that are, in the APB's view, necessary to prevent changes in audit practice to the detriment of audit quality.
A Consultation Paper has been issued with the exposure drafts that:
- Summarises the views of respondents to APB's October 2008 consultation on whether APB should adopt the clarified ISAs and, if so, when; and
- Explains APB's approach to including the proposed supplementary requirements and guidance that are specific to the UK and Ireland.