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ISCA Invites Comments on IAASB’s Exposure Draft: Proposed Narrow Scope Amendments to ISQMs, ISAs and ISRE 2400 (Revised) as a Result of the Revisions to the Definitions of Listed Entity and Public Interest Entity in the IESBA Code

The International Auditing and Assurance Standards Board (IAASB) issued the exposure draft on proposed narrow scope amendments to IAASB standards to achieve greater convergence with the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (Including Independence Standards).

The objectives of these proposed revisions are:

  • To align definitions and requirements in IAASB standards with new definitions for publicly traded and public interest entities in the IESBA Code; and
  • To extend the applicability of existing differential requirements for listed entities to meet heightened stakeholder expectations regarding audits of public interest entities (PIE).

Key proposed revisions include extending the scope of the entities included under the International Standards on Quality Management and the International Standards on Auditing such that they will be subject to requirements on:

  • Engagement quality reviews;
  • Providing transparency in the auditor’s report on specific aspects of the audit, including auditor independence, communicating key audit matters, and the engagement partner’s name; and
  • Communicating with those charged with governance to help them fulfill their responsibility overseeing the financial reporting process, (e.g., communicating about quality management and auditor independence).

ISCA takes a leading role in advocating the views and proposals of the audit community in Singapore and actively undertakes public consultation with its members and stakeholders. ISCA would hence like to seek views from key stakeholders in Singapore on the above.

ISCA requires all comments to be submitted to professionalstandards@isca.org.sg by 12 February 2024.

Please click here for the IAASB ED.