The IAASB has approved a project aimed at updating guidance on audits of derivative financial instruments to address issues resulting from the evolving financial environment, as well as developments related to the completion of the Clarity Project.
The project will involve:
- The development of a briefing paper to raise awareness and highlight a number of practical considerations currently posing challenges in audits of complex financial instruments; and
- The revision of International Auditing Practice Statement (IAPS) 1012, Auditing Derivative Financial Instruments, to bring it in line with the clarified ISAs and, as appropriate, further expand it for additional guidance for auditors when applying ISAs in the context of complex financial instruments.
The IAASB will consider a draft of the briefing paper at its September 2009 meeting