A single market for audit services will be created on the territory of the EAEU
The Ministry of Finance of Russia spoke about the agreement on the implementation of audit activities within the framework of the Eurasian Economic Union (EAEU). Its participants are all the member states of the EAEU: the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation. The main goal of the agreement is to create a single market for audit services based on common approaches to the organization, regulation and control of audit activities on the territory of the EAEU.The agreement prescribes the procedure for admission to audit activities (requirements for persons engaged in (participating in) audit activities, the implementation of these requirements in national legislation) and the rules for maintaining national registers of audit organizations, individual auditors and auditors (information included in them, bodies leading them and the interaction between them, the language of the registries, the disclosure of information from the registries). It also defines auditing standards, the institution of audit secrecy, requirements for internal quality control of audit services, organization of the provision of audit services, and so on.According to the provisions of the agreement, audit organizations and individual auditors included in national registers will not need to undergo any additional procedures (without additional registration in these states) to conduct activities in the territory of other EAEU member states.External quality control of work will be carried out by national regulatory authorities both in relation to audit organizations and individual auditors registered by them, and in relation to those whose information is included in the national registers of other EAEU member states, but providing audit services in this state.To implement the agreement, the EAEU member states will also conclude an agreement on administrative cooperation in the field of audit to determine the procedure for interaction between the bodies of the EAEU member states authorized to carry out the functions of regulating audit activities, responsible for maintaining registers that exercise external quality control.
IFAC launches new webpage "Professional Accountants as Business Leaders and Valuable Partners"
Accounting is a great path to a successful career in business or the public sector. Professional accountants in business perform a variety of financial and commercial functions. The professional qualification of an accountant lays the foundation for building successful organizations.Digital transformation and the spread of corporate sustainability principles around the world are also providing professional accountants with the opportunity to play a more strategic and central role in their organizations than ever before.IFAC's new resource book, Professional Accountants as Business Leaders and Valued Partners, looks at how professional accountants can become future-ready, data-savvy, and sustainable leaders. These materials are designed to help you understand and navigate the challenges and opportunities in a variety of roles as financial and business leaders, risk managers and analysts, as well as in broader commercial roles, including procurement and supply chain management.The new collection of resources consists of sections:Implementing sustainability principles in businessFuture Ready CFO and Finance FunctionData and digitalizationCase studies from companies around the world including Olam Agri, Reliance Industries, Standard Chartered Bank, Sime Darby Berhad, OMRON, Prudential Financial, Pakistan International Airlines and more
IAASB Submits Comments on Draft ISSB Sustainability Standards
The International Standards Board on Auditing and Assurance Engagements (IAASB) provided comments to the International Sustainability Standards Board (ISSB) on its sustainability and climate change disclosure projects. In its letter, the IAASB noted the importance of reliable, high quality, globally consistent sustainability reporting that investors and regulators can trust."The reliability and quality of sustainability reporting and maintaining the confidence of investors and regulators in sustainability information depend on the performance of all links in the reporting chain - from compilers (i.e., the organization and its management), those responsible for managing users, assurance practitioners, standard setters, regulators and supervisors.Just as for financial reporting, providing assurance in sustainability reporting plays a key role in building investor confidence.This is why the IAASB commentary focuses on the ability of practitioners to obtain assurance regarding reporting in the field of sustainability, prepared in accordance with the draft standards of the ISSB, which is why we are ready to cooperate with and support the ISSB," said Tom Seidenstein, Chairman of the IAASB.The IAASB highlighted the value of long-term collaboration between the IAASB and the ISSB, as well as the International Ethics Standards Board for Accountants, to strengthen the relationship between sustainability reporting, external sustainability assurance and ethical standards - especially as standards become more refined and improved . Ensuring confidence in sustainability reporting must play a critical role in enabling organizations to demonstrate the reliability and validity of their sustainability reporting.The IAASB initiated the development of an engagement standard for sustainability reporting. At the IAASB meeting in June 2022, the IAASB committed to developing a specific standard for assurance of sustainability reporting. This path towards improved standards for reaffirming the sustainable development goals was recently marked by the decision of the Financial Stability Board to include the work of the IAASB in its Roadmap to Address Climate Change-Related Financial Risks.
IAASB Initiates Engagement Standard for Assurance in Sustainability Reporting
In its Work Plan for 2022-2023, the International Auditing and Assurance Standards Board (IAASB) committed to creating robust standards that support and address sustainability/ESG reporting from an audit and assurance perspective. Assurance engagements for sustainability/environmental, social and governance (ESG) reporting are one of the most important areas of the work plan. In a recent article, Tom Seidenstein, Chairman of the IAASB, explains developments and the IAASB's plans to provide confidence in sustainability reporting.In June 2022, the IAASB enthusiastically supported the start of work on the development of a “separate” standard for engagements that provide assurance in sustainability reporting.Recognizing that a standard is in its early stages of development and decisions may change as the development of a standard progresses, the standard will:Separate from International Standard for Assurance Engagements (ISAE) 3000 (Revised) "Assurance Engagements Other than Audits and Reviews of Historical Financial Information";Consider obtaining both limited and reasonable assurance;Developed using the requirements and principles of IPSAS 3000 (Revised), IPSAS 3410 Engagements for Assurance for GHG Emissions Reporting, and unauthorized guidance on the application of IPSAS 3000 (Revised) for assurance engagements for sustainability reporting. development and other Enhanced External Reporting (EER) assignments. In doing so, the requirements and guidance will be expanded and specified to validate sustainability reporting;Initially focused on concretization to solve certain priority tasks;Be eligible for assurance engagements on all sustainability topics and information on those topics. The standard will be system neutral, and neutral towards users or stakeholders of sustainability information.In September, the IAASB will review the draft project plan, the draft structure of the standard, the requirements to be incorporated from MSSE 3000 (Revised) and MSSE 3410, and, time permitting, material from the EER Manual to be incorporated into the standard as requirements. The IAASB continues to work with key stakeholders.Stakeholders can follow the progress of the project by visiting the Sustainability project page.