APB invites comments on IAASB Exposure Drafts

The International Auditing and Assurance Practices Board (IAASB) recently issued:

Proposed new ISA 265, ‘Communicating Deficiencies in Internal Control’
Proposed ISA 402 (Revised and Redrafted), ‘Audit Considerations Relating to an Entity Using a Third Party Service Organisation’

Four exposure drafts of ISAs being redrafted for the Clarity Project:
- Proposed ISA 210 (Redrafted), ‘Agreeing the Terms of Audit Engagements’
- Proposed ISA 501 (Redrafted), ‘Audit Evidence Regarding Specific Financial Statement Account Balances and Disclosures’
- Proposed ISA 520 (Redrafted), ‘Analytical Procedures’
- Proposed ISA 710 (Redrafted), ‘Comparative Information – Corresponding Figures and Comparative…

APB issues Bulletin on audit issues when financial market conditions are difficult

The Auditing Practices Board (APB) today issued Bulletin 2008/1 which provides guidance for auditors on audit issues that may arise when financial market conditions are difficult and credit facilities may be restricted. While the Bulletin may be of assistance to the auditors of financial institutions it has been written to apply more generally and focuses on the possible risks of misstatement to the financial statements for all entities arising from:

• The possibility of the reduced availability of finance, and
• Difficulties with valuing some assets for balance sheet purposes, especially those that are required to be measured at ‘fair value’.
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