All About the International Auditing and Assurance Standards Board (IAASB)

Summary

This video script offers an in-depth exploration of the International Auditing and Assurance Standards Board (IAASB), discussing its role in setting global auditing standards to ensure quality and uniformity in the profession. It highlights the importance of IAASB in facilitating international and national standard convergence, enhancing public confidence, and increasing the comparability of financial statements worldwide. The script also covers the latest IAASB standards, its consultative advisory group, and ongoing projects, emphasizing the board's commitment to adapting to evolving industry needs.

Takeaways

• 📢 The channel aims to teach beyond academics and incorporate real-life aspects into the learning process.
• 🌐 The video discusses the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting body for auditing and assurance services.
• 📚 IAASB's purpose is to serve the public interest by setting high-quality international standards for auditing, quality control, review, and related services.
• 🔍 The channel provides an overview of IAASB, its history, and its role in facilitating the convergence of international and national auditing standards.
• 🌟 IAASB enhances equality and uniformity of practice in the global auditing and assurance profession, increasing public confidence.
• 📈 IAASB's standards make financial information more comparable across global stock exchanges, aiding in a more globalized approach to auditing.
• 📘 The latest IAASB standards are available in the 2021 Handbook, which includes International Standards on Auditing (ISA) and other relevant standards.
• 🗓️ Some standards mentioned in the handbook are not yet effective but are expected to come into effect on specific dates, such as ISA 315 effective from December 15, 2022.
• 📝 The video script clarifies that the information provided is in the public domain and is not an infringement of any copyright.
• 🔑 The IAASB has a Consultative Advisory Group (CAG) that provides advice on various areas including the IAASB's agenda and project timetable.
• 📢 The video encourages viewers to subscribe, like, share, and comment on the channel for feedback and further engagement.

Q & A

What is the purpose of the International Auditing and Assurance Standards Board (IAASB)?

The IAASB serves the public interest by setting high-quality international standards for auditing, quality control, review, other assurance, and related services.

Why is the IAASB important for professionals like Chartered Accountants (CA), Company Secretaries (CS), and Cost Accountants (CMA)?

The IAASB is important for these professionals because it sets the standards for auditing and assurance services, which are relevant to their roles, especially in the context of statutory auditing, internal auditing, and cost auditing.

What does the IAASB aim to achieve by setting international standards?

The IAASB aims to enhance the equality and uniformity of practice throughout the world, thereby increasing public confidence in the global auditing and assurance profession.

How does the IAASB facilitate the convergence of international and national auditing standards?

The IAASB facilitates convergence by setting international standards that can be adopted or aligned with by national standard-setting bodies, such as the Institute of Chartered Accountants of India (ICAI).

What is the significance of the IAASB's latest handbook published on December 2, 2022?

The latest handbook is significant as it includes updated international standards on auditing, quality control, review, and other assurance services, which are essential for professionals in the field to stay current with best practices.

What is the Consultative Advisory Group (CAG) of the IAASB, and what is its role?

The CAG is a formal mechanism of consultation for the IAASB, comprising representatives of member organizations. It provides advice on various areas including the IAASB's agenda, project timetable, and technical projects.

How can one access the latest standards and information from the IAASB?

The latest standards and information can be accessed through the IAASB's official website, iaasb.org, where all the documents are available in the public domain.

What is the current status of the IAASB's project on audits of less complex entities?

The project on audits of less complex entities is currently open for public comment, with an exposure draft already published and comments being considered.

What is the effective date for the new standard on quality management, ISQM 1?

The new standard on quality management, ISQM 1, became effective from December 15, 2022, and is applicable as of January 31, 2023.

How can one participate in the public consultation for less complex entity audits by the IAASB?

To participate in the public consultation, one can submit their comments through the IAASB's website by the requested deadline, which, as per the script, was May 2, 2023.

Is there a plan for future updates or revisions to the IAASB standards?

Yes, the IAASB continually works on updating and revising standards through various projects and consultations, which are detailed on their website under the 'Consultations and Projects' section.

Outlines

00:00

📚 Introduction to International Auditing and Assurance Standards Board (IAASB)

The speaker introduces the topic of the International Auditing and Assurance Standards Board (IAASB), emphasizing its importance in setting high-quality international standards for auditing, quality control, review, and other assurance services. The speaker clarifies that the video is in English to cater to a global audience and invites feedback through comments and subscriptions. They also mention the relevance of IAASB to professionals like Chartered Accountants (CA), Company Secretaries (CS), and Cost Accountants (CMA), and note the lack of in-depth teaching of IAASB in academic and professional settings due to its lower marks weightage.

05:01

🌐 IAASB's Role in Standard Convergence and Public Confidence

This paragraph delves into IAASB's role in enhancing equality and uniformity of auditing practices worldwide, thereby boosting public confidence in the global auditing and assurance profession. The speaker discusses how IAASB facilitates the convergence of international and national standards, using the example of Indian Accounting Standards (Ind AS) aligning with international standards. The paragraph also covers the history of IAASB, its transformation from the International Auditing Practices Committee (IAPC), and its current structure, including its members and the Consultative Advisory Group.

10:01

📘 Overview of IAASB's 2021 Handbook and Recent Standards

The speaker provides an overview of the 2021 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services, highlighting its three volumes and the latest standards it includes. They mention the replacement of the previous standard IFC 315 with ISA 315 and discuss the effective dates of newly introduced standards. The paragraph also covers the availability of these standards on the IAASB website for public access and the importance of the audit quality framework and assurance framework included in the handbook.

15:07

📝 Current Consultations, Projects, and the Consultative Advisory Group

This paragraph focuses on the current consultations and projects of IAASB, including the status of various accounting standards and the development of new standards for less complex entity audits and other areas. The speaker introduces the Consultative Advisory Group (CAG), its role in providing advice to IAASB, and the composition of member organizations involved. They also mention the importance of public consultations and the opportunity for viewers to contribute comments on open consultations.

20:07

🔚 Conclusion and Encouragement to Engage with the Content

In the concluding paragraph, the speaker thanks the audience for watching the video till the end and reiterates the request for subscriptions, likes, shares, and comments. They clarify that the video is an independent creation and not associated with IAASB or any other organization, emphasizing the intent to provide valuable and insightful knowledge on the topic. The speaker expresses hope to continue producing informative content on relevant topics and looks forward to future engagement with the audience.

Keywords

💡International Auditing and Assurance Standards Board (IAASB)

The International Auditing and Assurance Standards Board (IAASB) is an independent standard-setting body that develops high-quality international standards for auditing, quality control, review, and other assurance services. It plays a crucial role in ensuring the quality and consistency of audit practices globally. In the video, the speaker discusses IAASB's role in setting standards that are followed by auditors worldwide, emphasizing its importance in the professional world.

💡Auditing

Auditing refers to the examination and verification of an organization's financial records and reporting by an independent auditor. It is a critical process that helps ensure financial accuracy and transparency. In the video, the speaker mentions auditing in the context of the standards set by IAASB, which are designed to guide auditors in their work, thereby enhancing the reliability of financial statements.

💡Quality Control

Quality control in the context of auditing involves the processes and procedures that an audit firm follows to ensure the quality of its audit work. It is a key aspect of the standards set by IAASB, aimed at maintaining high professional standards in the auditing profession. The video script highlights the importance of quality control in auditing, as it directly impacts the credibility and reliability of audit outcomes.

💡Review

In the field of auditing, a review refers to a limited assurance engagement where an auditor reviews financial statements and provides a report on whether any material modifications are needed for the statements to be in accordance with the applicable financial reporting framework. The video discusses the standards for review engagements, which are part of the broader set of standards developed by IAASB.

💡Public Interest

The public interest is a fundamental concept in the context of auditing and standard-setting. It refers to the collective well-being of the general public, which is served by ensuring that auditing and assurance services are performed to a high standard. The video script mentions that IAASB serves the public interest by setting standards that are in the best interest of the public, not just the entities being audited.

💡Convergence

Convergence in the context of auditing standards refers to the harmonization of international and national auditing standards. The goal is to reduce differences between various countries' auditing practices, thereby enhancing the comparability and reliability of financial statements globally. The video script discusses how IAASB facilitates the convergence of international and national standards, which is crucial for maintaining consistency in audit practices across different jurisdictions.

💡International Standards on Auditing (ISA)

International Standards on Auditing (ISA) are a set of guidelines developed by IAASB that provide a framework for conducting audits. They are designed to ensure that audits are performed in a consistent and reliable manner across different countries. The video script mentions ISA 315, which is an example of an ISA that deals with identifying and assessing the risks of material misstatement in financial statements.

💡Consultative Advisory Group (CAG)

The Consultative Advisory Group (CAG) is a formal mechanism for consultation within IAASB. It includes representatives from various member organizations and provides advice on numerous areas, including the development of standards and the setting of project priorities. The video script highlights the role of CAG in providing input and feedback on the work of IAASB, which is essential for ensuring that the standards are relevant and practical.

💡Exposure Draft

An exposure draft is a document issued by standard-setting bodies, such as IAASB, that outlines proposed changes or new standards. It is made available for public comment before the standards are finalized. The video script mentions exposure drafts in the context of ongoing projects and consultations, indicating that they are an important part of the standard-setting process and allow for public input.

💡Public Consultation

Public consultation is a process where standard-setting bodies, like IAASB, invite feedback and comments from the public on proposed standards or changes to existing standards. This process is crucial for ensuring that the standards are well-informed and reflect the needs and concerns of various stakeholders. The video script discusses public consultations as a way for IAASB to gather input on less complex entity audits, demonstrating the importance of public engagement in the standard-setting process.

💡Less Complex Entity Audits

Less complex entity audits refer to audits of entities that have simpler financial structures and operations. IAASB has been working on standards specifically tailored for these types of audits, recognizing that they may require different approaches compared to more complex entities. The video script mentions that IAASB has opened public consultations on standards for less complex entity audits, indicating a focus on developing appropriate guidance for auditors in these contexts.

Highlights

Introduction to International Auditing and Assurance Standards Board (IAASB) and its role in setting international standards for auditing and assurance services.

The importance of IAASB in facilitating the convergence of international and national auditing standards.

The channel's aspiration to go beyond academics and incorporate real-life aspects into the content.

The significance of IAASB in enhancing equality and uniformity of practice in the global auditing profession.

The history of IAASB, including its founding in 1978 and its evolution from the International Auditing Practices Committee (IAPC).

The latest 2021 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Finance.

Details on the three volumes of the 2021 Handbook, including standards and frameworks.

The Consultative Advisory Group (CAG) as a formal part of consultation within IAASB.

Membership of the CAG, including various international organizations and their roles.

Current projects and consultations within IAASB, such as audits of less complex entities and sustainability insurance.

The public consultation for less complex entity audits and the opportunity for public comments.

The availability of all IAASB resources in the public domain on their official website.

The video's aim to provide an overview of IAASB for a global audience, including students and professionals in auditing and assurance services.

The video's disclaimer regarding the public domain nature of the information and the absence of copyright infringement.

The call to action for viewers to subscribe, like, share, and comment on the video for feedback.

The clarification that the video is an independent creation and not associated with any organization, including IAASB.

Transcripts

foreign

[Music]

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okay and uh like my video subscribe uh

to my channel as I've already decided

comment on my videos so that I can also

know and I can get to know the feedback

of you guys

uh today's video is on a new topic as

you can see on your screens

International auditing National

Standards Board iaasb that's what I have

selected for today

why have I selected this today because

in insightfully yours you know the

channel

my uh aspiration is not only to teach

you academically but to go beyond

academics okay so basically to

incorporate these aspects into the real

life as well and that is why uh today I

have brought in a topic which is

actually not

um taught as extensively

um in um schools and colleges right and

uh even in the professional world it's

not taught as in-depth as it should be I

believe

um but again

this uh is because

basically uh it doesn't carry a very uh

heavy marks weighted and that is why

it's not uh taught in depth as much but

yeah today I have brought in this topic

because I believe that

when you are um you know

working uh as a professional uh and uh

you decide uh to you know just uh

uh like uh you know um undertake a

professional course like uh being a CA

which is the most relevant I would say

here because it is concerned with

auditing and Assurance services

basically a statutory auditor is what a

CI does again uh other professions as

well like a CS or a CMA because then uh

you have the internal auditor concept

right and then there's the cost auditor

concept that is secretary audit so

everything is there it's all uh an

assimilation

okay a heads up before I start the

discussing of this topic this video uh I

have been uh you know recording in

English because this caters to a wider

audience

okay uh I intend to make this for a

bigger audience for a global audience

and that is why I'm recording this in

English if you want a Hindi or you know

version of this video you can let me

know through the comments and I'll

record it again in Hindi for you guys so

let's start off today

with uh International auditing and

Assurance Standards Board or the iaasb

now what exactly this word is it is a

standard setting board right it's an

independent standard setting body okay

it serves the public interest by setting

high quality International standards for

auditing quality control review other

assurance and related Services okay so

basically there are five key uh aspects

to this right

five key aspects are auditing quality

control review other assurance and such

related services

basically this is what iaasb has been

Incorporated for

now guys uh another important disclaimer

before I uh you know progress further

everything here which is uh available on

my screen it's available in the public

domain and it's all you know a property

of like iasb

okay I like I am not uh it's not my

objective to infringe on any copyright

or anything

so just disclaiming it just you know

heads on that this is the stuff uh that

I am discussing today it's all available

in public domain on their very website

iaasb.org right so it's all available in

the public domain I'm just uh you know

working you through quickly so that it

saves you a bit of your time

now uh the iasb it facilitates the

convergence of international and

National standards now International

standards as you can see from the name

itself it's the international auditing

restaurant status board and again

national standards because I am based in

India so the primary uh accounting you

know body which sets auditing standards

and accounting standards is the icai The

Institute of Chartered Carnage of India

and that's why you know

we are uh also you know trying to

converge uh with the the international

standards in fact we have already

achieved a lot of that because we have

brought about in as which is Indian

Accounting Standards right

uh to bring more Conformity uh and you

know to align it in a better way with

the international standards

keeping in mind uh the uh the aspects uh

related to the Indian scenarios the

Indian environment

okay now the iaasb this enhances the

equality and then for a uniformity of

practice throughout the world and change

this public confidence in the global

auditing and Assurance profession

basically how uh majorly by increasing

the comparability across Global

exchanges across Global stock policies

stock exchanges right

so basically

a company uh you know making having an

accounting information and it's based in

California USA there's another company

based in India without a company based

in Canada you know a fourth company

based uh perhaps in Africa so

if they were only to follow their

national standards on auditing

then it would be

incomparable

but now that iaasb was set up and you

know International standards were in

place

so a more globalized way of looking at

things

have started evolving

okay now you can go to the website and

look at all these

you know major

um

scenarios and aspects related to IA asp

then you you look at the uh the members

from uh sudden sign is the current

chairman

Josephine Jackson's device chair

and there are other members

no

then there's a history page you know a

history tab

uh

which tells us about when the iasb was

founded it was funded past 1978 and uh

previously known as International

auditing practices committee iapc

okay now

before 1991 they had standards

okay in 1991 the guidelines of iapc uh

were very codified as International

standards on auditing or is case

okay

and in 2002 the iapc was really

constituted as what is known today as

the international auditing and Assurance

Standards Board okay uh then they have

the terms of reference click on the tab

so the purpose the objective the various

pronouncements the membership okay

you can see the 18 members comprising

practitioners and non-practitioners

so there's the composition everything is

there the terms of office the meeting

procedures that you process which is to

be followed and as this consultative

Advisory Group

okay then they have made their annual

reports available as well the latest uh

annual report was 2021 iasp public

report

okay they have a planning committee

which is a stunning committee okay

that's also available

um planning committees objectives

responsibilities are there the purpose

the objectives everything is there

everything is available in the website

basically

and then there are judicial and National

auditing standard status

see currently the participating Nas

which is National auditing standard

centers are from Australia Austria

Brazil Canada China France Germany Hong

Kong SAR

India Japan Mexico New Zealand South

Africa Netherlands the United Kingdom

and United States of America as well as

the knowledge Federation all right so

basically this was an overview about

iaasb and let's move a step ahead and

understand these about these standards

and the pronouncements

okay

yep uh I move

here look at that oh I have kept these

tabs open

from early on

okay

okay it's loading again

so I just want to show you the latest

standard uh which is you know there

the latest uh standards which have been

made available by the iaasb

are available in the 2021 Handbook of

International Quality Control auditing

review other assurance and related

Services Finance

now this book was published on December

2nd 2022. roughly two months ago

I have kept this open uh in these tabs

now this book has been uh you know uh

made available in three volumes

so

this moment yeah

I just walk you through these because

these are important aspects I believe

and you should know a bit about these

now what these handbook uh you know what

what this latest edition of the handbook

includes so you know the international

standard on ordering Isa 315 so it

includes the device standards like these

IC 315 which is identifying assessing

the risk of maternal statement

okay and it in fact is a replacement

of the earlier device standard IFC 315

identifying and assessing the risks of

mentor misstatement to understanding The

Entity and it's a moment

other relevant standards are there now

there's one more thing which is written

here which is the following standards

which are not yet effective have been

included in backup volumes one two and

three sector 38 uh International

standard on quality management isqm one

quality management firms that perform

audits or reviews of financial

statements or other restaurants related

Services engagements

Etc

so now one thing which I wanted to let

you know this book was published on

December 2nd 2002 or rather the

standards were published right that's

why it is said effective immediately

which are not yet effective okay which

are not yet effective so as on that date

these standards which have been

mentioned below

have not been made effective

and I was uh so I clicked in that you

know I I tried to research about it

and I came to know that

uh just a moment uh

yeah so look at this the ice cream one

which uh was written in the very first

in a bullet point

this standard was not effective as on

that data is on December 2nd now the

standard will be effective from effect

you know December 15 2022. so basically

now this standard is applicable the

standard has been made effective okay as

on 31st January 2023 on the date I'm

recording this video

so this is uh the major Crux

of this and uh yeah I also wanted to

show you what exactly these handbooks uh

this this handbook consists of it's the

first volume so yeah it has everything

from

isqc International standard Zone quality

control then audit of historical

financial information which is in you

know isas

you know everything is there then

International auditing practice note is

there

uh then the new advice standards which

are not yet effective as on that date

but will be effective as I said uh you

know as I showed to you so this is isq

one ice cream 2 and other such uh

standards uh this was the first volume

and similarly two more volumes are there

so everything is available in the public

domain everything is available in their

website I've actually clicked on this

link the PDFs are available for you to

view so you can actually go through

these and you can also do your own

research and see that uh how much you

know of uh this

um is similar to our standards which are

there from the Indian perspective

and wherever you are watching this video

whether you're in the USA or any other

jurisdiction you can basically compare

uh your standards with what the iasb

stands on so you can see that then there

is the stand out the standards on review

engagements right on Assurance

engagements on related services

again not an effective so you can just

look at these standards

and uh have a quick reference again the

third volume is there

right

this contains the audit quality of

framework and then Assurance framework

such stuff

and uh if you are a CA student they have

been familiar with these because

in accounting Urban reading Accounting

Standards you read the framework

right

so framework is essentially uh very

important

so this was all that was included in

other standards

and this was the latest uh available

right

now I'll go back and uh

switching my uh

Focus now

to

the

concentrations and projects

just a moment

other consultations and projects

basically would show you what uh

the various status of certain accounting

standards are

basically the ISB is working on audits

of less complex entries and the status

is the comments have been considered

audit evidence the exposure draft is

already out for command

and uh fraud and going concern the

exposure drafts are in the development

stage for these again technology it's an

ongoing process so it's just ongoing the

work is ongoing okay it's in the

development phase its own way

so this is uh the current scenario which

I wanted to share with you

with that done now The consultative

Advisory Group

so now

the iaasp uh has consultative Advisory

Group okay and it's an obviously an

important part of the ISB is a formal

president of consultation

so there have uh there there are

representatives of CSG member

organizations and they provide uh advice

in numerous areas including the Ia asb's

editor and project timetable Network

program and including project uh

priorities technical projects under the

providers of elevated activities of the

iaasp

then again

the member organizations now this is

important

because

the following organizations comprise the

membership of this area you can see

there are so many organizations involved

accountancy Europe okay uh business

Europe CFA Institute development

Commission

Financial Executives institutes

International

Institute of internal auditors

right

there are so many World Bank well

Financial exchanges that observers three

observers are their Financial Services

Agency Japan international monetary fund

IMF uh U.S public Company accounting of

a sideboard now they also have a terms

of uh their terms of reference like

objective and scope

the public interest website the

composition the membership the term of

office the operating procedures

everything is there

it shared uh you know rules and

responsibilities

what's the criteria

you know for selection of a CG share

so basically this is a

the entire Crux of things

again you can see um

if you click on this tab consultations

and projects right

so they're not only uh there are current

projects which are available so when I

showed you the status it was in

uh just a moment

and me

quickly share the screen again

okay

yeah

so as I was saying uh basically I was

showing you the status like for certain

uh

you know standards the exposure adapters

in development stage for certain the

comments open so this is uh another

um that was in the current projects and

again you can see uh open for command

which are open for Command right

completed projects are there closed

consultations are there

so everything is there in their website

as I said already

I have told you already about the

international thing or an insurance

transport the overview

giving you this overview so this work is

done

and yeah

I also clicked in the dreams tab to let

you know the latest news and information

the latest news you can see

it's uh Jan 24th so just a week prior

that iaasb opens public consultation

less complex script audits

right I I just showed you that they are

open for command

the public consultation uh you know for

Less complex Cube audience in the

consultations and uh you know this we

consultation the consultations in

projects tab right they have already

showed you this so this is the latest

news

you can consider this like a press

release

right and yeah yeah you can look at this

also the commands are requested by the

2nd of May 2023

that's right it's important it's

important

you can if you want to comment if you

think it's

in the you know in your like a if you

think you can provide a relevant a

comment okay then you should uh

go ahead and comment

publicly

so this was the major news

again then the meetings tab if you just

click in this

as the upcoming meetings past meetings

yeah damn YouTube channel as well you

can check that out too

okay

Focus areas is basically

these

a new standard forage of less compact

Sentry is sustainability Insurance you

just click on these tabs and you'll get

the information required if you need to

order a rather want to go through all

this

so yeah

and that's basically all

so yeah

so this is the completed walkthrough

guys thank you for staying on and

watching till the end

again please subscribe to my channel if

you haven't subscribed yet please do

like share comment

and yeah one more thing uh before I you

know end this video that

uh

uh it was my own decision to

you know make a video on this topic you

know like

uh this video is not associated with any

organization like the iasb itself is not

associated with uh yeah you know making

this video or anything this is not a

promotional video or anything of that

sort I just I wanted to clarify this as

well

okay

so

um this ends the video like uh this ends

the topic here right

um I've already told you to subscribe my

channel and like and share the video and

comment on the video so I'm requesting

you guys and again again and again

please do it okay and uh

until next time guys uh we'll see what

other topic I can come up with I hope to

come up with interesting topics so that

you can not you know you can uh gain

really uh insightful knowledge which is

uh you know my uh

um you know aim okay so thank you guys

until next time thank you