SOCPA Shares Perspective on IAASB Project
The International Auditing and Assurance Standards Board (IAASB) has published a project proposing limited amendments to update the definitions of listed entities and public interest entities. These proposed amendments are part of joint efforts with the International Ethics Standards Board for Accountants (IESBA) to meet the high expectations of stakeholders in public interest entities. Based on IESBA's project to develop definitions of listed entities and public interest entities for the International Code of Ethics, IAASB aimed to leverage these efforts in reviewing the definitions in the International Standards on Quality Management, the International Standards on Auditing, and International Standard on Review Engagements 2400. The IAASB project focuses on aligning definitions within IAASB's professional standards with IESBA's definitions and identifying specific issues within the standards that, according to IAASB’s direction, will be areas for different requirements based on the entity’s definition.
SOCPA, represented by the Auditing Standards Committee, has expressed its general support for the proposed limited amendments to the International Standards on Quality Management, the International Standards on Auditing, and the International Standard on Review Engagements 2400. These amendments aim to enhance consistency with the professional and ethical requirements auditors must adhere to and better meet the high expectations of stakeholders regarding the audit of certain types of entities, such as public interest entities. SOCPA also highlighted the importance of considering risks that may affect the expectations gap concerning audit quality due to further projects aimed at establishing different professional and ethical requirements based on the nature and type of entities.
To view SOCPA’s full perspective, click here.