F ra ud a nd Go ing Co nc e rn Pro je c t Upda te a nd Disc - PowerPoint PPT Presentation

IAASB Me e ting August 11, 2020 Age nda Ite m 1- C F ra ud a nd Go ing Co nc e rn Pro je c t Upda te a nd Disc ussio n Pa pe r AUGUST 2020

  Comple te : Pla nning c omme nc e d:  Co lla tio n o f c o mme nts  Disc ussio n pa pe r fro m o the r I AASB fo c use d o n e xpe c ta tio n pro je c ts g a p  Co o rdina tio n with NSS  Ro undta b le disc ussio n g ro up a b o ut e xpe c ta tio n g a p -inve sto rs/ a na lysts,  I de ntific a tio n o f ke y pre pa re rs, tho se the me s c ha rg e d with g o ve rna nc e  De ve lo pe d pla n fo rwa rd  F ra ud-spe c ific F ra ud a nd ro undta b le :  Me e ting s he ld with UK a nd Ja pa n to le a rn  L CE s mo re a b o ut the ir Go ing Co nc e rn  T se pa ra te fra ud a nd e c hno lo g y- g o ing c o nc e rn fo c use d Sta tus Upda te sta nda rds/ pro je c ts  Wo rking g ro up  b ra insto rming me e ting s In proc e ss: in Oc to b e r (F ra ud ) a nd  Ac a de mic de skto p No ve mb e r (Go ing re vie w Co nc e rn)  Co o rdina tio n with o the rs (e .g . I AASB wo rkstre a ms, I E SBA, e tc ) a s ne e de d

 Clo se c o o rdina tio n with the I ASB thro ug ho ut the c o urse o f the g o ing c o nc e rn pro je c t.  Cr itic al po int o f c o lla b o ra tio n. Go ing  Ce rta in sta ke ho lde r c o nc e rns a ro und Co nc e rn - g o ing c o nc e rn ma y b e b e st a ddre sse d b y the I ASB (i.e . c ha ng e s to Co o rdina tio n ma na g e me nt’ s re spo nsib ilitie s).  So me sug g e ste d c ha ng e s to the a udit with the I ASB sta nda rd ma y no t b e a b le to b e ma de unle ss the re a re c o rre spo nding c ha ng e s ma de to the a c c o unting sta nda rd.

F ra ud - Ma jo r T he me s I de ntifie d/ Ne xt Ste ps # T he me Planne d Ac tion(s) fo c use d o n e xpe c ta tio n g a p Disc ussion pape r 1 xpe c tation gap a nd c la rific a tio n o f the funda me nta l E • Roundtable disc ussion a b o ut e xpe c ta tio n g a p re spo nsib ilitie s o f the a udito r • with inve sto rs, pre pa re rs, tho se c ha rg e d with g o ve rna nc e 2 T e c hnology T e c hnology- foc use d fr aud r oundtable • 3 Sc o pe o f pro c e dure s re q uire d fo r le ss c omple x e ntitie s F ra ud-fo c use d r oundtable ta rg e te d to wa rds • a udito rs o f L CE s 4 Co mme nts on inappr m to e xplo re ho w the opr iate or inc onsiste nt applic ation Wor king gr oup br ainstor • o f c e rta in c o nc e pts in I SA 240, inc luding : sta nda rd/ a pplic a tio n ma te ria l mig ht b e c la rifie d e sumption o f sig nific a nt risk o f fra ud in Re buttable pr • re ve nue re c o g nitio n Audit re spo nse to manage me nt ove r r ide of c ontr ols, • inc luding jour nal e ntr y te sting Additio na l fr aud r isks a nd inte g ra tio n o f fra ud risk in • a ll a spe c ts o f the a udit linkage to o the r I SAs Be tte r • Cla rific a tio n o f pro c e dure s re q uire d whe n fr aud is • ide ntifie d

Go ing Co nc e rn - Ma jo r T he me s I de ntifie d/ Ne xt Ste ps # T he me Planne d Ac tion(s) Disc ussion pa pe r fo c use d o n e xpe c ta tio n xpe c ta tion g a p a nd c la rific a tio n o f the funda me nta l 1 E • g a p a nd ta rg e te d to wa rds a ll a udie nc e s re spo nsib ilitie s o f the a udito r in re la tio n to g o ing c o nc e rn Roundta ble disc ussion a b o ut e xpe c ta tio n • (inc luding e xpa nde d re q uire me nts if ne c e ssa ry) g a p with inve sto rs, pre pa re rs, tho se c ha rg e d with g o ve rna nc e Sug g e ste d ta rg e te d e nha nc e me nts to ISA 570 (Re vise d) Working g roup bra instorm to e xplo re ho w 2 • the sta nda rd/ a pplic a tio n ma te ria l mig ht b e Communic a tions with tho se c ha rg e d with g o ve rna nc e • c la rifie d a nd with re g ula to rs/ o the r supe rviso ry b o die s Be tte r linka g e to o the r ISAs / spe c ific a c kno wle dg me nt o f • using wo rk pe rfo rme d in o the r a re a s o f a udit (e .g . risk a sse ssme nt) to drive wo rk pe rfo rme d re la te d to g o ing c o nc e rn Cla rific a tio n b e twe e n the diffe re nc e be twe e n g oing • c onc e rn a nd solve nc y Cla rific a tio n o n wha t a mate r tainty is ial unc e r • Sug g e stio n to a dd a udito r re po rting de c ision tr e e to • a pplic a tio n ma te ria l

T ime line o f Pla nne d Ac tivitie s Ac tivity Date Disc ussion Pape r disc usse d at Boar d Me e ting 8/ 11/ 2020 (T oday) Disc ussio n pa pe r pub lishe d with [60-da y] c o mme nt pe rio d 8/ 30/ 2020 F ra ud-fo c use d te c hno lo g y ro undta b le 9/ 2/ 2020 Ro undta b le disc ussio n a b o ut e xpe c ta tio n g a p with inve sto rs, 9/ 28/ 2020 pre pa re rs, tho se c ha rg e d with g o ve rna nc e F ra ud wo rking g ro up b ra insto rm/ disc ussio n 10/ 5/ 2020-10/ 6/ 2020 F ra ud-fo c use d L CE ro undta b le 10/ 7/ 2020 Go ing Co nc e rn wo rking g ro up b ra insto rm/ disc ussio n We e k o f 11/ 16/ 2020 F e e dbac k on infor mation gathe r ing to Boar d - F r aud De c e mbe r 2020 F e e dbac k on infor mation gathe r ing to Boar d – Going c onc e r n F e br uar y 2021 F r aud pr oje c t pr oposal Q2 2021 Going Conc e r n pr oje c t pr oposal Q3 2021

Disc ussio n Pa pe r: Ma tte rs fo r I AASB Co nside ra tio n  T he IAASB is a ske d fo r its o ve ra ll vie ws a b o ut the DP pre se nte d in Ag e nda Ite m 1-A. In pa rtic ula r, Sta ff wo uld like to o b ta in the Bo a rd ’ s vie ws o n:  Conte nt  Are the re a ny re le va nt issue s missing fro m the DP?  Clar ity  Whe the r the dra ft DP is suffic ie ntly c le a r a nd unde rsta nda b le ;  Whe the r the q ue stio ns a re a ppro pria te to so lic it input fro m a b ro a d ra ng e o f sta ke ho lde rs.  T he Bo a rd is a ske d :  Whe the r the re a re a ny o the r ma tte rs tha t sho uld b e hig hlig hte d in the DP re la te d to the to pic o f the ‘ e xpe c ta tio n g a p.’  T o pro vide vie ws o n the pla nne d le ng th o f the c o mme nt pe rio d.  T he Bo a rd is a ske d whe the r it a g re e s tha t the DP c a n b e fina lize d a nd pub lishe d fo r pub lic c o nsulta tio n.

Othe r Ma tte rs fo r I AASB Co nside ra tio n  Are the re a ny o the r ma tte rs re la te d to the fra ud a nd g o ing c o nc e rn info rma tio n-g a the ring a c tivitie s tha t sho uld b e furthe r c o nside re d a s the info rma tio n g a the ring a c tivitie s re la te d to fra ud a nd g o ing c o nc e rn a re pro g re sse d?