The Handbook, 2015 Edition contains the complete set of International Auditing and Assurance Standards Board’s (IAASB) standards on quality control, auditing, review, other assurance and related services, as well as the non-authoritative International Auditing Practice Notes (IAPN). It also includes a preface to the IAASB’s pronouncements, a glossary of terms, and other non-authoritative material. This handbook replaces the 2014 edition of the handbook.
Additions to Part I of the Handbook
Part I of the handbook includes changes to the following International Standards on Auditing that were issued by the IAASB in January 2015 as a result of its project to enhance the communicative value of the auditor’s report:
- ISA 260 (Revised), Communication with Those Charged With Governance;
- ISA 570 (Revised), Going Concern;
- ISA 700 (Revised), Forming an Opinion and Reporting on the Financial Statements;
- ISA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report; and
- ISA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report.
Part I includes ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report. The ISA applies to audits of complete sets of general purpose financial statements of listed entities. It also applies when the auditor is required by law or regulation to communicate key audit matters for other entities or when the auditor decides to communicate KAM on a voluntary basis.
Part I of the handbook includes ISA 720 (Revised), The Auditor’s Responsibilities Relating to Other Information, issued by the IAASB in April 2015. The revised ISA aims to clarify and increase the auditor’s involvement with “other information”—defined in the standard as financial and non-financial information, other than the audited financial statements, that is included in entities’ annual reports. It also includes new requirements related to auditor reporting on other information that complement the changes arising from the IAASB’s Auditor Reporting project.
As a result of its Disclosures project, changes were made to the ISAs that aim at focusing auditors on disclosures throughout the financial statement audit. The changes include strengthened requirements in ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, ISA 330, The Auditor’s Responses to Assessed Risks, and ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements, as well as enhanced application material in these and several other ISAs to more explicitly address disclosures.
These changes are included together with conforming amendments from other standard-setting projects on pages 1150–1224 of Part I.
The new and revised Auditor Reporting standards and those addressing disclosures are effective for audits of financial statements for periods ending on or after December 15, 2016.
There are no additions to Part II of the handbook.
There are no additions to Part III of the handbook.
Withdrawals
The following standards included in the 2014 Handbook have been withdrawn and replaced with revised standards that are now effective:
Part II of the Handbook
- International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information, replaced with ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information, which is effective for assurance reports dated on or after December 15, 2014.
- International Framework for Assurance Engagements as included in Part II of the handbook, replaced with the amended International Framework for Assurance Engagements in part III of the handbook.
