AASB Proposes Limited Changes To Auditing StandardsIn Response To The IESBA’S Project Addressing Non-Compliance With Laws And Regulations
The International Auditing and Assurance Standards Board® (IAASB®) today released an Exposure Draft, Proposed Amendments to the IAASB’s International Standards—Responding to NonCompliance or Suspected NonCompliance with Laws and Regulations, to propose limited amendments to the IAASB’s International Standards in response to the International Ethics Standards Board for Accountants® (IESBA’s®) May 2015 ReExposure Draft, Responding to NonCompliance with Laws and Regulations.
“The IESBA’s Exposure Draft proposes a framework for professional accountants in deciding how best to act in the public interest when they come across an act or suspected act of noncompliance with laws and regulations, which will be highly relevant for auditors,” explained Prof. Arnold Schilder, IAASB Chairman. “The IAASB therefore believes that amendments are needed to the IAASB’s International Standards in the public interest to enable them to operate in concert with the IESBA standards and without confusion due to the many jurisdictions that utilize both.”
The focus of the Exposure Draft is proposed amendments to International Standard on AuditingTM (ISATM) 250, Consideration of Laws and Regulations in an Audit of Financial Statements, with less extensive changes proposed to seven other standards. The amendments, which are limited in nature, do not explicitly duplicate in detail all the specific requirements in the IESBA Code of Ethics for Professional AccountantsTM (the Code), as this allows for flexibility when ethical codes other than the Code are applied. Rather, the IAASB’s proposals seek to acknowledge the enhancements that will be made by the IESBA in the Code and clarify and emphasize key aspects of the IESBA’s proposals in the IAASB’s International Standards.
The IAASB’s Exposure Draft is open for comment through October 21, 2015, noted Kathleen Healy, IAASB Technical Director.
“The IAASB has issued its proposals with a 90day comment period in hopes that stakeholders will consider them alongside the IESBA’s reExposure Draft,” she added. “The IAASB intends to continue to coordinate with the IESBA as both Boards move forward on this important topic.”