Auditing and assurance for a better finance landscape
The gods of auditing know no rest. In these times of global change they have no time to as they move heaven and earth to carve out a new environment by 2005. Richard Mifsud FCPA reports on the activities of accounting deities, the IAASB and AuASB.
The role of the International Auditing and Assurance Standards Board (IAASB) is to establish high-quality auditing, assurance, quality control and related services standards and to improve the uniformity of practice throughout the world. In doing so it is strengthening public confidence in the global auditing profession and serving the public interest. In developing standards and guidance that are acceptable to a broad constituency of international stakeholders, the IAASB works towards the continuing convergence of national and international standards and encourages participation in joint projects with experienced standard setters from around the world.
The long-term objectives of the IAASB, outlined in the report Action Plan for 20032004, include establishing high-quality auditing standards for financial statement audits, as well as quality control standards for the scope of services offered by the IAASB. It also aims to increase the public understanding of the responsibility of professional auditors and assurance providers.
To achieve its objectives, the IAASB continues to promote its pronouncements throughout the world, and supports a strong and cohesive international auditing profession by coordinating with regional organisations, member bodies, including CPA Australia, and national standard setters, such as the Australian Auditing and Assurance Standards Board (AuASB). The IAASB also seeks to improve the quality and uniformity of auditing practices and related services throughout the world by encouraging debate and presenting papers on a variety of audit and assurance issues.
Traditionally, Australia has been regarded as an influential international contributor, through Australian representation on the IAASB, and the support provided by the Australian professional accounting bodies to international standard-setting activities of the IAASB. Our contribution to the IAASB is well regarded. We continue to be involved in a number of key IAASB project taskforces and subcommittees. In March the first meeting of the IAASB for 2003 was held in Melbourne and hosted by CPA Australia and the Institute of Chartered Accountants.
Australian membership of the IAASB is integral to the ability of the AuASB to continue as an effective national standard setter, and is crucial to it maintaining and further developing the current body of auditing and assurance standards and related guidance which is used by the Australian accounting profession.
The AuASB has a long-standing policy of convergence and harmonisation of Australian auditing standards (AUSs) with international standards on auditing (ISAs). The AuASB has continued to support the objective of convergence with IASs developed by the IAASB.
The AuASB is aiming to ensure that compliance with AUSs will also ensure compliance with ISAs. It is anticipated that through ongoing revisions of ISAs and AUSs and further convergence over the next year, this goal should be met by the commencement of 2005. This will place Australia on a similar footing with the accounting and auditing profession in the European Union with regard to compliance with ISAs by this deadline.
Richard Mifsud FCPA is Executive Director of the Australian Accounting Research Foundation (AARF). ITS activities are determined by its two Boards, the AuASB and Legislation Review Board.
