The International Auditing and Assurance Standards Board (IAASB) launched a consultation on proposed narrow scope amendments to achieve greater convergence with the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (Including Independence Standards).
The proposals have two key objectives.
- align definitions and requirements in IAASB standards with new definitions in the IESBA Code.
- extend the applicability of existing requirements for listed entities to meet heightened stakeholder expectations regarding audits of public interest entities.
Key proposed revisions include extending the scope of the entities included under the International Standards on Quality Management and the International Standards on Auditing which will impact on:
- Engagement quality reviews;
- The auditor’s report including independence, communicating key audit matters, and the engagement partner’s name; and
- Communicating with those charged with governance.
Feedback is requested by April 8, 2024.