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![Page 1: Page 1 | Proprietary and Copyrighted Information Emerging Issues and Outreach Reyaz Mihular, Chair Emerging Issues and Outreach Committee IESBA Board Meeting.](https://reader036.fdocuments.in/reader036/viewer/2022082821/5697bfc41a28abf838ca5c86/html5/thumbnails/1.jpg)
Page 1 | Proprietary and Copyrighted Information
Emerging Issues and Outreach
Reyaz Mihular, Chair Emerging Issues and Outreach Committee
IESBA Board Meeting
October 13-15, 2015
New York
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Page 2 | Proprietary and Copyrighted Information
Global Adoption of the Code
• April Board meeting– Good first step – especially for G-20 Countries– Snap shot in time– Disparate nature of adoption– Responsibility for overseeing adoption
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Page 3 | Proprietary and Copyrighted Information
Global Adoption of the Code
• September CAG meeting– How categories of adoption defined?– Measurement of adoption can be resource intensive – How do jurisdictions adopt latest changes?– Understand nature and extent of differences– Highest standard vs. lowest common denominator?
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Page 4 | Proprietary and Copyrighted Information
International Forum of Independent Audit Regulators (IFIAR)
Inspection Reports
• Main findings:– Audit of listed PIEs: fair value measurements; internal
control testing; adequacy of financial statements– Audits of SIFIs and G-SIBs: loan losses and impairments;
control testing; valuation of investment and securities– Quality control systems: engagement performance; human
resources; ethics and independence
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Page 5 | Proprietary and Copyrighted Information
International Forum of Independent Audit Regulators (IFIAR)
Inspection Reports
• Matters pertaining to independence:– Engagement quality control reviews– Independence considerations– Provisions / reserves
• Inspection findings – targeted actions to improve audit quality
• Greater liaison with IFIAR
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Page 6 | Proprietary and Copyrighted Information
UK Financial Reporting Council (FRC)
Inspection Reports
• Key areas needing improvement:– Focus on audit quality– Need to maintain professional skepticism– Audits of financial services entities– Group audits– Independence and Ethics – boiler plate approach– Audit quality monitoring
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Page 7 | Proprietary and Copyrighted Information
UK Financial Reporting Council (FRC)
Inspection Reports
• Independence:– Good standard of independence from auditors
• Ethics– NAS selling targets in partner appraisals
– Contingent fee arrangements on tax services
– Rotation of KAPs from other network firms
– Disposal of shareholdings in audited entities
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Page 8 | Proprietary and Copyrighted Information
Canadian Public Accountability Board (CPAB)
Inspection Reports
• Main findings:– Trend in audit quality is positive– Challenge to improve audit quality being taken seriously– Improvement due to action plans– Concerns over overseas audits– TCWG should discuss audit quality with auditors
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Page 9 | Proprietary and Copyrighted Information
Other Matters
• EU Audit Reform– Liesbet Haustermans
• Outreach