17 December 2015

IFAC: IAASB seeks feedback on standard-setting activities to enhance audit quality

The IAASB released its Invitation to Comment, Enhancing Audit Quality in the Public Interest: A Focus on Professional Skepticism, Quality Control and Group Audits. It highlights the board’s discussions on these three topic areas and indicates potential standard-setting activities.

“We are committed to having a strong impact on audit quality—particularly as the environment in which audits are conducted evolves and becomes more complex,” stated Prof. Arnold Schilder, IAASB Chairman. “We believe that global use of the ISA™ is a fundamental part of this objective. In addition, we acknowledge the importance of continuing to strengthen the standards and being responsive to ongoing concerns about audit quality. It is essential that the standards reinforce the need for auditors to continue to be critical challengers, within a system of rigorous quality management.”

The IAASB released a companion document, Overview of the ITC, which summarizes the key areas the IAASB is exploring and the direction it may take.

“Responses to this consultation will guide the board’s work over the next few years, so it is essential that we hear from all stakeholder groups about where we should focus,” explained Kathleen Healy, IAASB Technical Director. “The Overview document, in particular, is designed to solicit feedback from and improve collaboration with investors, audit committees, and preparers. Other stakeholders may also find the Overview useful as a discussion and outreach document as they develop their comments.”

The IAASB’s Framework for Audit Quality, issued in 2014, explains the important role of auditors and their firms—as well as other stakeholders—in audit quality, and the contextual factors that affect it. It is an important reference document for this consultation.

The comment period for both publications is open through May 16, 2016.

Full press release

Invitation to comment

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