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IAASB: Proposed Narrow Scope Amendments to ISQMs ISAs and ISRE2400 as a Result of the Revisions to the Definitions of Listed Entity and PIE in the IESBA Code
- 22 February 2024
- Auditing and Assurance
- South African Accounting Academy
These proposed revisions have 2 key objectives:
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First, they will align the definitions and requirements in IAASB standards with the new definitions for publicly traded and public interest entities in the International Ethics Standards Board for Accountants (IESBA) Code.
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Second, the amendments will extend the applicability of existing differential requirements for listed entities to meet heightened stakeholder expectations regarding the audits of public interest entities.
Relevance for South Africa
The Independent Regulatory Board for Auditors (IRBA) adopted the IESBA Code, published in 2018, together with South African enhancements. Since then, the IRBA Code of Professional Conduct for Registered Auditors (Revised April 2023) (IRBA Code) tracks changes in the IESBA Code and is updated for those developments, following local due process and adoption by the IRBA Board. Local adaptations of the IESBA Code are reflected in the IRBA Code as underlined and in italics.
Additionally, the IRBA Code includes local amendments to the definition of a public interest entity.
IRBA invited respondents to advise us of any issues or SA-specific challenges that should be considered. Comments should be submitted via email to [email protected] by 8 March 2024.
The response template, in an MS Word format, may be downloaded from https://www.irba.co.za/upload/IAASB-Proposed-Narrow-Scope-Amendments-PIE-Response-Template%20(2).docx
Alternatively, auditors and other interested stakeholders can submit comments directly to the IAASB via its website by 8 April 2024.
Click here to download the Exposure Draft:
https://www.irba.co.za/upload/IAASB-Proposed-Narrow-Scope-Amendments-PIE.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
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As an auditor and independent reviewer, you need to comply with International Standards on Quality Management, International Standards on Auditing and other Assurance Services (including review engagements), and thus you need knowledge of newly revised and proposed standards that are approved as well as when they become effective.
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Failure to adhere to international standards may be interpreted as negligence and you could be held liable.
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Auditors, Independent Reviewers and Accountants should be aware of the latest publications and guidance issued by regulators and standard-setting boards, such as the IAASB.
Relevance to Your Clients:
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None