The International Auditing and Assurance Standards Board (IAASB) has issued a new standard, ISA 700 The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements. ISA 700 is intended to enhance the transparency and comparability of auditor's reports across international borders.
The standard also sets out clear guidance to the auditor in those circumstances when the audit is conducted in accordance with both ISAs and the auditing standards of a specific jurisdiction, and in particular on preparing an auditor's report to meet both the report structure required by the national jurisdiction and the requirements of the ISA. The new wording for the auditor's report includes:
The European Federation of Accountants (FEE) has published a 186-page paper outlining how to apply, in practice, the principles underlying the European Commission's (EC) Recommendation on auditor independence. The EC Recommendation requires auditors to identify, consider, and document potential threats to their independence and to detail the safeguards that have been put in place to eliminate those threats. The FEE publication also provides a comparison of the requirements of the EC Recommendation with that of the independence section of the International Federation of Accountants (IFAC) Code of Ethics. To download a free copy go to http://www.fee.be/publications/main.htm
IFAC's IAASB invites comments on two new EDs: ISA 320 - Materiality in the Identification and Evaluation of Misstatements and ISA 540 - Auditing Accounting Estimates and Related Disclosures (Other than Those Involving Fair Value Measurements and Disclosures). The revisions to these standards are part of IAASB's drive to strengthen audit quality worldwide. The comment deadline is 30 April 2005. For additional information, please visit www.ifac.org