AUASB Consultation on IAASB ED as a result of revisions to PIE definitions

Monday, February 5, 2024

The AUASB has released a Consultation Paper seeking public comment on the IAASB’s Exposure Draft on  proposed narrow scope amendments for audits of Public Interest Entities (PIEs).

The proposed revisions have two key objectives. First, they would align definitions and requirements in IAASB standards with new definitions for publicly traded and public interest entities in the IESBA Code. Second, the amendments would extend the applicability of existing differential requirements for listed entities to meet heightened stakeholder expectations regarding audits of PIEs.

Key proposed revisions include extending the scope of audits of PIEs such that they will now be subject to:

• Engagement quality reviews;
• Providing transparency in the auditor’s report on specific aspects of the audit, including auditor independence and communicating key audit matters; 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).

In addition to the invitation to comment on the Consultation Paper, the AUASB is hosting a Virtual Roundtable on 5 March to take stakeholders through the key proposals of the IAASB ED, and to provide stakeholders an opportunity to provide feedback directly to the AUASB.

AUASB Consultation

The Consultation Paper also considers the Accounting Professional & Ethical Standards Board Limited (APESB) Revisions to the Definitions of Listed Entity and Public Interest Entity in APES 110 Code of Ethics for Professional Accountants (including Independence Standards) where those revisions differ from IESBA Code.

The AUASB invites all stakeholders to comment on all or some of the questions contained in the AUASB Consultation Paper by 25 March 2024 via the AUASB website. Where stakeholders provide comments directly to the IAASB, the AUASB request a copy is provided to us.

Stakeholders’ feedback will be used to inform the AUASB in its formal response to the IAASB on the IAASB Exposure Draft.

To register your interest for the AUASB virtual roundtable on this topic scheduled to take place 5 March 2024, click here.

Any queries about the Consultation Paper and the AUASB’s associated outreach activities should be directed to See Wen Ewe, AUASB Manager, at [email protected].