and other relevant international and other organizations based on Internet research.
1. APB Issues Consultation Papers on Guidance for Small Entity Audits
The United Kingdom and Irish Auditing Practices Board (APB) has issued two consultation papers which set out some of the issues associated with the application of International Standards on Auditing (ISAs) (UK and Ireland) to the audit of smaller entities. The APB is seeking views on whether Practice Note 13, The Audit of Small Businesses, should be updated and whether additional guidance is needed to assist auditors of small entities and by whom such guidance should be issued. Comments are also sought on a consultation draft of new guidance on the application of documentation requirements of ISAs (UK and Ireland).
Comments on the two consultation papers are requested by April 30, 2007. The papers may be downloaded from the APB's website at http://www.frc.org.uk/apb/publications/pub1252.html.
Source: http://www.frc.org.uk/apb/
2. European Commission Consults on Non-EU Audit Firms
The European Commission has launched a public consultation on its future strategy and priorities on statutory audit in relation to non-EU countries (known as third countries). The Commission wants to know the business community's views on how third-country audit firms could be supervised and on how the EU could cooperate with third countries. The consultation is intended to assist the Commission in finding pragmatic and consistent solutions within the framework of the Statutory Audit Directive. Comments are requested by March 5, 2007.
More information is available at http://ec.europa.eu/internal_market/auditing/index_en.htm.
3. IASB Releases Proposed IFRS for SMEs
On February 15, the International Accounting Standards Board (IASB) issued the exposure draft of its proposed International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). The proposed standard is designed to provide a simplified, self-contained set of accounting principles that is appropriate for smaller, non-listed companies and is based on full IFRSs, which are developed primarily for listed companies.
The exposure draft is available for eIFRS subscribers beginning February 15 and will be publicly available on the IASB's website beginning February 26. Comments on the exposure draft are requested by October 1, 2007.
For more information, see the IASB website at http://www.iasb.org/News/Press+Releases/IASB+publishes+draft+IFRS+for+SMEs.htm.
Source: http://www.iasb.org
4. Internal Auditors Can Contribute to Corporate Social Responsibility, Survey Finds
The results of recent studies are pointing to the need for training to bridge risk management, business strategy, and corporate social responsibility (CSR) trends. Internal auditors are taking a look at CSR, also known as sustainable development, as an area in which their expertise on risk, control, and governance can boost the public's confidence and trust in their organization. In a survey of more than 3,000 internal auditors conducted by the Institute of Internal Auditors (IIA) in January 2007, 92 percent of respondents stated that internal auditing can add value to an organization's CSR planning and reporting. In addition, approximately half of survey respondents felt that CSR is a topic important enough to be discussed between an organization's chief audit executive and the audit committee.
For more information, see the IIA website at http://www.theiia.org/theiia/newsroom/news-releases/?C=1042&i=3015.
Source: http://www.theiia.org
5. PCAOB Issues Report on Implementation of Fraud Standards
The United States Public Company Accounting Oversight Board (PCAOB) has issued a report that discusses auditors' implementation of its interim standards regarding the auditor’s responsibility with respect to fraud. The report draws on important or recurring observations made during the PCAOB's inspection of audit work performed by registered public accounting firms. Using those observations as a focal point, the report addresses several topics, including:
- The auditor's overall approach to the detection of financial fraud;
- Required brainstorming sessions and fraud-related inquiries;
- The auditor's response to risk factors for fraud;
- Financial statement misstatements; and
- Fraud associated with management override of controls.
The PCAOB issued the report both to focus auditors' attention on being diligent about fraud and to provide information that audit committees may final useful in working with auditors. It is available on the PCAOB website at http://www.pcaobus.org/Inspections/Other/2007/01-22_Release_2007-001.pdf.
Source: http://www.pcaobus.org
6. Proposals for Restructuring the International Valuation Standards Committee Released
The International Valuation Standards Committee (IVSC) has embarked on a proposed major restructuring process not unlike that undertaken by the International Accounting Standards Committee in the late 1990s that led to the creation of the International Accounting Standards Board. The increased use of fair value has significantly raised the profile of valuations used for financial reporting purposes and is bringing with it increased scrutiny from regulators and other parties. The restructuring proposals were developed by a Governance Group established by the IVSC management board. Comments are requested by March 9, 2007, and the proposals can be viewed on the IVSC website: http://www.ivsc.org.
7. UK Economic Secretary Proposes New Money Laundering Regulations
The United Kingdom Economic Secretary, Ed Balls, has published draft money laundering regulations designed to ensure the UK response to money laundering at home and abroad is effective, proportionate and engages with all key stakeholders. The proposals include:
- Extended supervision so that all businesses in the regulated sector comply with money laundering requirements;
- Strict tests to ensure people running money services businesses and those who help set up trusts and companies are fit and proper; and
- Extra checks on customers that firms identify as posing a high risk of money laundering.
The public consultation period for the proposed regulation closes on April 2, 2007. The UK government plans to implement the regulations by December 2007. The draft regulation can be viewed at http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2007/press_07_07.cfm.
8. UN Seeks Public Sector Accountants and Finance Professionals
United Nations (UN) System organizations are recruiting a number of candidates to assist in the implementation of International Public Sector Accounting Standards (IPSASs). Candidates for these positions must possess relevant experience in implementing international accounting standards or applying "IPSAS similar" standards within a public sector or international organization. Public sector accountants with experience in preparing accrual financial statements would also be of interest. Announcements on open positions are available from the UN Human Resources (Galaxy) website: http://www.jobs.un.org. One such open position is the Finance and Budget Officer, which can be accessed on this site under occupational group "Finance," Vacancy Announcement # 412519.
For more information about UN System organizations' adoption of IPSAS implementation, visit: https://fb.unsystemceb.org/reference/05.
For more information on the International Public Sector Accounting Standards Boards, which establishes IPSASs, visit its website: http://www.ipsasb.org.
Source: http://www.un.org
9. Voluntary XBRL Reporting Program Launched in Canada
The Canadian Securities Administrators has launched a new eXtensible Business Reporting Language (XBRL) voluntary filing program that outlines how issuers can voluntarily file financial statements in XBRL format. XBRL is a relatively new business reporting language that is emerging as an international standard for communicating business and financial data. The XBRL filing will not replace the official PDF filing that is required by securities regulators, but will provide additional information made available to the public through the System for Electronic Document Analysis and Retrieval website.
For more information on the program, see the news release on the Ontario Securities Commission website at http://www.osc.gov.on.ca/Media/NewsReleases/2007/nr_20070119_csa-xbrl-launch.jsp.
For more information on XBRL, visit: http://www.xbrl.org.
Source: http://www.cica.ca
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