ISCA Comments on IAASB’s Exposure Draft: Proposed ISSA 5000 General Requirements for Sustainability Assurance Engagements and Proposed Conforming and Consequential Amendments to Other IAASB Standards
ISCA welcomes the development of IAASB’s new sustainability assurance standard, which will serve to enhance confidence and trust in sustainability reporting. In our response, we highlighted areas where implementation guidance is needed to address practical application challenges, such as the application of materiality to sustainability information, which is wide-ranging with diverse user needs and expectations. Due to the relatively nascent state of sustainability assurance, we also provided recommendations on areas where requirements over risk assessment and fraud requirements can be tightened.
ISCA Comments on IAASB’s Exposure Draft: Proposed ISA 570 (Revised 202X) Going Concern and Proposed Conforming and Consequential Amendments to Other ISAs
ISCA is supportive of the enhancements to strengthen the auditor’s evaluation of management’s going concern in response to the heightened risks surrounding this topic in recent years. However, new and enhanced requirements need to be balanced vis-à-vis the responsibilities borne by management and directors. In our comment letter, we highlighted practical challenges which the profession may face and proposed enhancing the level of disclosures on going concern.
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 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.