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Achieving Increased Transparency and Global Acceptance. Dietz MERTIN. Chairman, IFAC International Auditing and Assurance Standards Board Germany. XVI World Congress of Accountants 2002. Achieving Increased Transparency and Global Acceptance Dietz Mertin Chairman IAASB.
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Achieving Increased Transparency and GlobalAcceptance Dietz MERTIN • Chairman, • IFAC International Auditing and Assurance • Standards Board • Germany
XVI World Congress of Accountants 2002 Achieving Increased Transparency and Global Acceptance Dietz Mertin Chairman IAASB
IAASB’s world is changing Points to cover: • IAASB’s work structure review • The ISA global acceptance process • IAASB’s mid-term agenda • Communication with the Consultative Advisory Group (CAG) • Partnership with the National Auditing Standard Setters’ network
IAASB‘s work structure review • From 14 to 18 members First time with 3 non-auditors • IAASB‘s meetings open to the public • Total agenda material accessible on IFAC‘s website • From IAPC to IAASB – International Auditing and Assurance Standards Board • IAASB staff strengthened • Strategy ad agenda updated • Annual report (first time end of 2002)
Member body and firm nominees: Brazil Anna Maria Elorietta Canada Denise Esdon China Yang Zhiguo France Gérard Trémolière Germany (chair) Dietz Mertin Italy Robert Tizzano Japan Gen Ikegami The Netherlands Roger Dassen Nordic Countries Jan Bo Hansen South Africa Suresh Kana United Kingdom Philip Ashton John Kellas Ian Plaistowe United States John Archambault Randy Noonan Non-auditor nominees: Australia (Public Sector): Ian McPhee Australia (Academic) Roger Simnet Canada (User): Denis Desautels The Board member list
The ISA global acceptance process • IOSCO - is reviewing the existing standards - will recommend certain changes - will finally consider an ISA endorsement • EU - is planning obligatory use of ISAs from 2005 onwards in Europe • World Bank - favours a closer link between private and public sector audit procedures • Basel Committee - close cooperation with IAASB (e.g. IAPS 1004 + 1006)
IAASB’s mid-term agenda • Complete and updated set of standards until 2005 • High priorities - the “Audit Risk Model” standards - revision of ISA 100 “Assurance Engagements” - “Group Audits” and revision of ISA 600 “Using the Work of Another Auditor” - “Review of Interim Financial Statements” - revision of ISA 700 “The Auditor’s Report” - revision of ISA 220 “Quality Control” - revision of ISA 240 “Fraud and Error”
IAASB’s mid-term agenda, cont. • Other priorities - revision of ISA 620 “Using the Work of an Expert” - revision of ISA 320 “Audit Materiality” - revision of ISA 540 “Audit of Accounting Estimates” - revision of IAPS 1005 “Audit Considerations reg. Small Entities” - “Public and / or Private Offerings” - “Continuous Audit”
Communication with the Consultative Advisory Group (CAG) • Working relationship review after first 4 years • Immediate decisions - to review CAG’s terms of reference - 2 instead of 1 meeting each year - to focus the agenda more on IAASB technical issues - to review CAG’s membership to balance geographical spread
Communication with the Consultative Advisory Group (CAG), cont. • The member list Association for Investment Management and Research Basel Committee on Banking Supervision Council of the Bars and Law Societies of the EU European Banking Federation European Commission European Federation of Accountants and Auditors for SMEs European Federation of Financial Executives' Institutes European Federation of Investment Funds & Companies European Financial Reporting Group European Savings Banks Group Fédération des Experts Comptables Européens
Communication with the Consultative Advisory Group (CAG), cont. Federation of European Stock Exchanges Information Systems Audit and Control Association Institute of Internal Auditors International Accounting Standards Board International Actuarial Association International Association of Insurance Supervisors International Bar Association International Monetary Fund International Organization of Securities Commissions International Organization of Supreme Audit Institutions United Nations Conference on Trade & Development World Bank World Federation of Stock Exchanges
Partnership withNational Auditing Standard Setters‘ Network • Network formation January 2001 - worldwide exchange of information on future agenda - first joint projects “Audit Risk Model” and “Fraud” – IAASB and US-ASB • Second meeting January 2002 Further joint projects - “Public and / or Private Offerings” – 5 Standard Setters - Revision ISA 320 “Audit Materiality” – IAASB and UK-APB - Revision ISA 540 “Accounting Estimates” – IAASB and UK-APB - “Continuous Audit” – 4 Standard Setters