Standard Setting Highlights
INTOSAI PSC-SCJune 2017
James Gunn, Managing Director Professional Standards
Common Themes Across the SSBs
• Strategies: Impactful, Public Interest-Focused, and
Future-Oriented
• Standards: Globally Relevant, Progressive and
Durable; Responsive to Needs and Operable
• Stakeholders: Deep and Intense Dialogues,
including with Regulatory and User Communities
• Work Programs: At-capacity; Balancing Speed
and Quality; Coordination on Mutual Interest Topics
• Major New Standards: Supporting Adoption and
Proper Intended Application
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Audit, Assurance and Related Services
Activity Highlights
Skepticism – IAASB, IESBA, IAESB Working Group
Estimates, Quality Control, Risk Assessment, Group Audits – Outreach and Scoping
Auditor Reporting – Special Considerations, and Implementation Support
NOCLAR – Considering Laws and Regulations in an Audit
2016 2017-2018
Publication & IAASB-specific
initiatives
Exposure Drafts
Addressing Fundamental Elements of the Audit
High-Quality Audits in a Changing Business Environment –
Influenced by Technology, Complexity, and Demands for Continued Relevance
Quality Control at the
Engagement Level (ISA 220)
Auditing Accounting Estimates,
Including Fair Values (ISA
540)
Group Audits (ISA 600)
Risk Identification
and Assessment
(ISA 315)
Strengthening the Application of Professional Skepticism
Enhancing Firms’ Systems of Quality Control (ISQC 1)
Exploring Implications of the Changing Environment
• Technology and the Audit, with focus
on Data Analytics
• Emerging Forms of External
Reporting, including <IR>
• Agreed-Upon Procedures
Engagements, and further
exploring SME-SMP Needs
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Ethics
Achieving a Significantly Upgraded Code
Structure and Clarity of Code
Safeguards, including Non-Assurance Services
Long Association with Audit Clients
NOCLAR – Non-Compliance with Laws and Regulations
Skepticism – IAASB, IESBA, IAESB Working Group
2016 2017
IESBA-specific initiatives
Finalize
Exploring Implications of the Changing Environment
• The Code and the G20 – Studying and
documenting key differences
• Inspection Findings – Stimulating
improved data sharing
• Fees-Related Issues – Literature
review and fact-finding
• Survey released April 2017 (until 18 July)
on the Code for Rapidly Changing WorldExponential, disruptive technology
(e.g. Emergent AI, big data, cloud computing, mobile, social networks, blockchain)
Emerging or newer models of work and service delivery (e.g. contingent workforce; managed and outsourced services)
Strengthening foundational & technical areas
(e.g. “Public interest” & other key concepts and terms, documentation & communication, ISA/ISAE alignment)
Future IESBA Strategy and Work
Plan
Ethical
implications for
the Code?
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Education and Professional Competence
Activity Highlights
Continuing Professional Development (CPD) –Outreach and Scoping
IES Usage Baseline Study
Support Materials: Learning Outcomes, Entry Requirements, Professional Competence for
Audit Engagement Partners
Framework Update and IES Drafting Changes
Skepticism – IAASB, IESBA, IAESB Working Group
2016 2017
IAESB-specific initiatives
Exposure Draft
2017-2021 Strategy
• Focus on Standards Development
– Continuing Professional Development
(CPD) (Revision of IES 7)
– Professional Skepticism
– Assessment of skills & education needs
(i) information and communication technology
(ii) developments in public sector
– Post-Implementation Review of IES Suite
• Strategic Stakeholder Engagement
• Further IES Implementation Support
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Financial Reporting in the Public Sector
Enhancing IPSAS Relevance
Project Public sector specific
IFRS convergence
Social Benefits
Revenue & Non-Exchange Expenditure
Financial Instruments
Heritage
Public Sector Measurement
Infrastructure Assets
Leases
Cash Basis IPSAS (limited-scope update)
Activity Highlights
Social Benefits, Financial Instruments, Leases, Cash Basis
Public Sector Combinations, IPSAS Applicability, Updated Employee Benefits, Impairments
Inaugural CAG and Public Sector Standard Setters Forum meetings
Terms of Reference, Due Process & Working Procedures, CAG Terms of Reference
2016 2017-2018
Continuation
Final IPSASs
Revenues/Non-Exchange Expenses, Financial Instruments, Heritage, Infrastructure,
Measurement
Exposure Drafts &
Consultations
Exploring Opportunities
• European Public Sector Accounting
Standards (EPSAS) – Active
monitoring and engagement
• Growth in IPSAS Adoption– Latin
America, SE Asia, Africa, Canada
(under review), Australia (?)
Delivering the Vision:
New IPSASB Strategy and Work Plan
2019-2023 Strategy and Work Plan
PIC advice
CAG input
Public consultation 2018
Stakeholder outreach 2017
The SSB Staff Team