FAS MeetingMoU IFAC- INTOSAI

Cooperation - Declaration of Intent

• To facilitate the development of joint activities, the PSC and IFAC will create structures appropriate to the respective activities• Achieving awareness of the nature of each

organization’s activities in the topics of common interest below. This mutual awareness will be achieved principally through attendance at committee or board meetings, as appropriate, and through meetings between the organizations at the technical staff level; to

• Developing appropriate output or publications which may be either co-badged or with an agreed form of support by one organization for the work of the other.

MoU- possible actions to achieve the objectives• PSC to continue as a member of the IAASB Consultative

Advisory Group and appoint a member to speak on behalf of PSC.

• IFAC to continue as an observer to the PSC Steering Committee and Financial Audit Subcommittee (FAS) of PSC.

• IAASB to invite PSC, through its relevant subcommittee, to appoint a representative to appropriate task forces where the expertise of a member of PSC would be appropriate.

• FAS develops and maintains ISSAIs on financial audit on the fourth level in the existing hierarchy of standards in INTOSAI.

MoU- possible actions to achieve the objectives• An ISSAI in the area of financial audit consists of an ISA,

which – where appropriate – will contain public sector related guidance (refer to paragraph 2), and a practice note. Practice notes will be prepared by FAS and will explain the application of an ISA in the public sector – providing guidance on the extent to which it is applicable and the adjustments to be made by a public sector auditor. Where considered necessary, a practice note may contain detailed guidance on the application of an ISA in the public sector. Guidelines may also be developed by FAS in areas that are not relevant to the private sector.

• The IAASB includes – where appropriate – public sector related guidance within the body of an ISA or other pronouncement.

MoU- possible actions to achieve the objectives• The FAS will seek to promote awareness of relevant IAASB

publications, in particular exposure drafts and consultation papers, to assist the IAASB in obtaining feedback on its proposals from public sector auditors.

• The IAASB and FAS respectively share knowledge and experience on the development of international standards and matters of concern to accountants and public sector auditors in general.

MoU paragraph 11• The IAASB remains the sole responsible party for the

development and approval of the ISAs. The IAASB may consider it necessary to amend an ISA prepared by an IAASB Task Force, including the public sector related guidance. Where the IAASB proposes amendments to the ISA that affect the public sector related guidance, the FAS expert involved in the IAASB Task Force is provided an opportunity to consider the proposed amendments. This consideration takes place in a manner that will not disrupt the timely issue of the proposed or final ISA. The IAASB may also consider it necessary to consult others with public sector expertise and experience in regard to public sector related guidance in the ISAs. The FAS contributes in broad terms to the ISAs and can provide input beyond that of specific public sector issues.

• As regards assurance engagements and other standards from the IAASB, the IAASB and FAS will look further into the possibilities of a cooperation between IAASB and FAS on assurance engagements and other standards from the IAASB. A recommendation on these matters will thereafter be presented to the PSC Steering Committee and IAASB respectively. When approved by these bodies, the recommendation will be annexed to this MoU.

• The IAASB and FAS respectively share knowledge and experience on the development of international standards and matters of concern to accountants and public sector auditors in general.

• The IAASB and FAS may lay down further details of their cooperation in a separate agreement which should be related to this MoU and which cannot in any way contradict it.