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CCAB Training Providers Event, 17 November 2008. Implementing Clarity ISAs - an audit firm perspective. Jon Rowden. PwC. PwC involvement in APB Regulatory Impact Assessment . CCAB Training Providers event. Slide 2. UK Regulatory Impact Assessment - Key features.

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  1. CCAB Training Providers Event, 17 November 2008 Implementing Clarity ISAs - an audit firm perspective Jon Rowden PwC

  2. PwC involvement in APB Regulatory Impact Assessment CCAB Training Providers event Slide 2

  3. UK Regulatory Impact Assessment - Key features • 11 firms contributed (6 large, 5 small) • 13 large (>500 hours) audits and 14 small audits covered in the study • PwC assessed 3 large audits • Interest from PwC network firms - assessment extended to other territories CCAB Training Providers Event

  4. Overall the RIA provides a reasonable current best estimate of the cost of implementing Clarity ISAs Regulatory Impact Assessment – Our approach and measurement • Focus on: • additional engagement hours and work effort from key changes to ISA requirements • central implementation costs • Limitations: • current ISAs unclear leaving latitude for different interpretation • comparison of real gap or technical gap? • some Clarity ISAs not yet finalised at time of RIA • how will the inspectors address Clarity ISAs? CCAB Training Providers Event

  5. What did PwC learn? • Changes to audit standards will affect audit hours/costs differently depending on: • size of the client • type of client (e.g., group audits/stand-alone entities) • current audit approach • engagement team interpretation of the requirement • Clients will need to understand required changes in: • management responsibilities • information requested by auditors • cost increases for same visible product • Requirements and application guidance may be subject to significant variation in interpretation • Identified areas for particular attention during training CCAB Training Providers Event

  6. Discussions points for audit software or training providers and their clients CCAB Training Providers Event Slide 6

  7. Gap-based or refresher training? Optimal timing / practicable timing Medium and hours Discussion point #1: Training CCAB Training Providers Event

  8. Augmented or re-written programmes Authority and consequences of ISA objectives and requirements The treatment of application guidance Discussion point #2: Audit Programmes CCAB Training Providers Event

  9. Audit manual: prompt for a re-formatting? Defining “quality” and hence “quality control” post-clarity Updating templates: chore or opportunity? Discussion point #4: Other facets of clarity ISA CCAB Training Providers Event

  10. Ingredients for success Bumps in the road Business as usual Discussion point #4: Managing change CCAB Training Providers Event

  11. Questions for training /software providers • Are there other major implementation issues? • Who needs to do what to best support the implementation process for smaller firms? • What are the next steps that you should be taking? CCAB Training Providers Event

  12. © 2005 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers LLP (US). PwC Questions?

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