Audit and Assurance news

In November 2020, the Irish Auditing and Accounting Supervisory Authority (IAASA) issued a revised Ethical Standard for Auditors* and revised International Standards on Auditing (ISAs) (Ireland).  The Institute have issued the attached Technical Alert 03 2021 ISAs(Ireland)  Guidance on the new ISAs (Ireland) Auditing Standards issued by the Irish Auditing and Accounting Supervisory Authority in 2020 to highlight to members key new requirements of the ISAs applicable in Ireland and to add some clarification.  The purpose of TA 03/2021 is to highlight to members key new requirements of these Auditing Standards applicable in Ireland. It does not highlight all changes to the standards and is not intended to be a replacement to reading the entire text of the standards, rather it is a guide for members in identifying the key changes to auditing standards. The revised standards are effective for audits of financial statements for periods beginning on or after 15 July 2021, with early adoption permitted. The updates to ISAs (Ireland) in November 2020 consist of: Clarification and enhancement of requirements relating to group audit procedures and the auditor’s work effort in respect of ‘other information’ in the financial statements. Extension of the requirement for the auditor’s report to explain the extent to which the audit was considered capable of detecting irregularities, including fraud, to listed entities as well as Public Interest Entities (PIEs). Enhanced disclosures in respect of materiality, including the specification of performance materiality. The requirements of the standards can apply differently depending on the type of entity being audited, with the majority of requirements applying to all entities, certain additional requirements applying to both listed entities and PIEs, and other requirements applying only to PIEs. The table format in the attached Technical Alert helps clarify where the requirements apply.  The full text of the ISAs can be accessed on IAASA’s website: https://www.iaasa.ie/Publications/Auditing-standards/Standards-Guidance-for-Auditors-in-Ireland/International-Standards-on-Auditing-(Ireland) *Two guidance documents on the Revised Ethical Standard were issued earlier this year: Technical Release (TR 02/2021) Reporting Breaches of Ethical Standard for Auditors (Ireland) 2020. Technical Alert (TA 02/2021) Guidance on the revised Ethical Standard for Auditors (Ireland) 2020

In November 2020, the Irish Auditing and Accounting Supervisory Authority (IAASA) issued a revised ethical standard for auditors,  Ethical Standard for Auditors (Ireland) 2020  (https://www.iaasa.ie/Publications/Auditing-standards). The revisions build on existing changes made to the standards in 2017 which implemented the requirements of the EU Audit Regulation and Directive.    The revised Ethical Standard includes a new requirement for audit firms to make reports of breaches of the Ethical Standard to the relevant competent authority and now explicitly prescribes reporting of breaches to those charged with governance. The purpose of the Technical Release (TR 02/2021) Reporting Breaches of Ethical Standard for Auditors (Ireland) 2020 is to alert members to these new requirements and to provide an example of the report that may be submitted to the Recognised Accountancy Body and IAASA. Please note the revised standard is effective from 15 July 2021.

In November 2020, the Irish Auditing and Accounting Supervisory Authority (IAASA) issued a revised ethical standard for auditors (https://www.iaasa.ie/Publications/Auditing-standards ).  The revisions build on existing changes made to the standards in 2017 which implemented the requirements of the EU Audit Regulation and Directive.  The Institute have issued the attached Technical Alert (TA 02/2021) Guidance on the revised Ethical Standard for Auditors (Ireland) 2020 to highlight to members the key new requirements of the Ethical Standard applicable in Ireland and to add some clarification. In particular we draw attention to the effective date of the revised standard. The Ethical Standard for Auditors (Ireland) 2020 is effective from 15 July 2021. There are limited transition provisions.  These are set out on page 30 of the Ethical Standard and in Section 5 of the Technical Alert. Firms may complete engagements relating to periods commencing before 15 July 2021, in accordance with existing ethical standards, putting in place any necessary changes in the subsequent engagement period. Engagements to provide previously non-prohibited non-audit services entered into before 15 July 2021, and for which the firm has already commenced work may continue until completed in accordance with the original engagement terms, subject to the application of appropriate safeguards.   

In November 2020, the Irish Auditing and Accounting Supervisory Authority (IAASA) issued revised ethical and auditing standards in a bid to support the delivery of high-quality audit and strengthen confidence in audit in Ireland. These new amendments, which were the subject of a formal consultation earlier in 2020, are effective for audits of financial statements for periods beginning on or after 15 July 2021, with early adoption permitted This article,  from the recent Accountancy Ireland, summarises the main changes in the Ethical Standard (Ireland) for Auditors, the International Standards on Auditing (Ireland), and International Standard on Quality Control (Ireland) 1. The standards are available on IAASA's website.    

In 2015, the International Auditing and Assurance Standards Board (IAASB) released new auditor reporting standards to enhance the communicative value, transparency and relevance of the auditor’s report in the public interest. The IAASB has now published a feedback statement after a public consultation. Stakeholders expressed broad support for the standards, and the resulting auditor’s report, and indicated that the standards have met the IAASB’s objectives. The stakeholder feedback statement summarizes key themes and views shared with the IAASB through the 2020 Auditor Reporting Post-Implementation Survey as well as a roundtable discussion held in September 2020. The survey, roundtable, and related outreach solicited perspectives on implementation and specific aspects of the revised auditor reporting standards. Three of the key areas of focus for stakeholders were key audit matters, going concern and other information in the auditor’s report. The IAASB’s Auditor Reporting Implementation Working Group is considering the feedback in developing its post-implementation review recommendations for the IAASB’s consideration in September 2021

The IAASB in collaboration with IFAC have announced a webinar series, which will take a deep dive into aspects of the IAASB’s International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.