ISCA Invites Comments on IAASB’s Exposure Draft: Proposed Part 10, Audits of Group Financial Statements of the Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE)
ISCA is supportive of the inclusion of group audits in ISA for LCE for less complex groups and provided feedback on the scope of the proposed prohibition on use and group-specific qualitative characteristics. When the finalised ISA for LCE is issued by the IAASB, ISCA will conduct outreach activities to seek the profession’s feedback with regards to adopting the standard in Singapore.
ISCA Issues Updated Audit Guidance Statement 1 (Revised Apr 2023), Sample Independent Auditor’s Reports
Appendix 5A, which pertains to an agreed-upon procedures report in connection with an example of an EDB grant scheme, has been updated to include procedures in relation to new reporting requirements.
ISCA Comments on IAASB’s Exposure Draft: Proposed ISA 500 (Revised) Audit Evidence and Proposed Conforming and Consequential Amendments to Other ISAs
ISCA is supportive of the revised standard, especially on the enhancements over the application of technology and professional skepticism in audits. ISCA proposed for further elaboration on the use of data analytics to support and facilitate its adoption.
ISCA Comments on IAASB’s Consultation Paper: The IAASB’s Proposed Strategy and Work Plan for 2024–2027
While ISCA supports IAASB’s overall proposed strategy, ISCA urged for the prioritisation of technology targeted projects to update the ISAs for the impact of technology, especially in relation to auditing of complex IT environment and digital assets.
ISCA Issues SSA 600 (Revised), Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors)
SSA 600 (Revised) deals with special considerations that apply to a group audit, including when component auditors are involved. The standard includes new and revised requirements for better alignment with recently revised standards (such as the quality management standards) and strengthens the auditor’s responsibilities related to planning and performing a group audit, among other revisions. Effective for audits of financial statements for periods beginning on or after 15 December 2023.
ISCA Issues Technical Bulletin 1 Addressing Climate-Related Risks in Financial Statements and Audits of such Financial Statements (TB 1)
Arising from the strong focus on climate globally and in Singapore, TB 1 provides guidance on climate-related risk considerations in financial reporting and audits of financial statements. It also includes an example of a Singapore entity in the transportation industry to illustrate how climate-related risks could affect how the principles of the financial reporting standards and auditing standards are applied.