Guidance on Revised International Standards on Auditing (Ireland)

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