IAASB Main Agenda Page 2003·1549
I NTERNATIONAL F EDERATION
OF ACCOUNTANTS
535 Fifth Avenue, 26th Floor
New York, New York 10017
Internet: http://www.ifac.org
Committee:
Agenda Item
Tel: +1 (212) 286-9344
Fax: +1 (212) 856-9420
9
IAASB
Meeting Location: Tokyo
Meeting Date:
12-17 October 2003
Audit Risk Model – Approval as Final ISAs
Objectives of Agenda Item
1.
To review and approve the following revised Audit Risk proposals as ISAs:
(a) ISA Audit Evidence;
(b) ISA Understanding the Entity and Its Environment and Assessing the Risks of Material
Misstatement;
(c) ISA The Auditor’s Procedures in Response to Assessed Risks; and
2.
To review and approval revisions to ISA 200 Objective and General Principles Governing an
Audit of Financial Statements.
Background
A summary of the significant issues arising from the Audit Risk exposure draft process was
presented to the IAASB at its July 2003 meeting. The summary also included the Joint Risk
Assessments Task Force’s initial reactions to the issues based on the results of its meetings and in
reviewing Staff proposed changes.
At the July 2003 meeting, John Kellas highlighted and discussed with the IAASB the more
significant issues including those relating to internal control, documentation requirements and
assertions.
Activities Since Last IAASB Discussions
Since the July IAASB meeting, the Task Force continued its consideration of the comments
received. The enclosed Audit Risk - Significant Changes agenda paper summarizes the more
significant changes made in response to comments received and the Task Force’s further
consideration of the proposals. Generally, the revisions are consistent with the Task Force’s initial
reaction as discussed in July 2003. (IAASB Members may wish to refer to the Significant Issues
paper presented in July 2003.)
The Chairs and Staff met in August to discuss final revisions to the Audit Risk draft proposals.
The Task Force met in September to finalize the drafts for IAASB approval.
Prepared by: Sylvia Barrett (September 2003)
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IAASB Main Agenda Page 2002·1550
Material Presented
Agenda Paper 9-A
Audit Risk Model - Approval as Final ISAs
Audit Risk - Significant Changes
(Pages 1551-1562)
Agenda Paper 9-B
(Pages 1563-1570)
Agenda Paper 9-C
(Pages 1571-1578)
Agenda Paper 9-D
(Pages 1579-1590)
Agenda Paper 9-E
(Pages 1591-1600)
Agenda Paper 9-F
(Pages 1601-1652)
Agenda Paper 9-G
(Pages 1653-1696)
Agenda Paper 9-H
(Pages 1697-1718)
Agenda Paper 9-I
(Pages 1719-1738)
Proposed ISA 200 Objective and General Principles Governing an
Audit of Financial Statements
Marked to show changes to the exposure draft
Proposed ISA 200 Objective and General Principles Governing an
Audit of Financial Statements
For IAASB approval (Clean)
Proposed ISA Audit Evidence
Marked to show changes to the exposure draft
Proposed ISA Audit Evidence
For IAASB approval (Clean)
Proposed ISA Understanding the Entity and Its Environment and
Assessing the Risks of Material Misstatement
Marked to show changes to the exposure draft
Proposed ISA Understanding the Entity and Its Environment and
Assessing the Risks of Material Misstatement
For IAASB approval (Clean)
Proposed ISA The Auditor’s Procedures in Response to Assessed
Risks
Marked to show changes to the exposure draft
Proposed ISA The Auditor’s Procedures in Response to Assessed
Risks
For IAASB approval (Clean)
Action Requested
1.
IAASB is asked to approve the proposed Audit Risk ISAs as final ISAs;
2.
IAASB is asked to approve the revisions to ISA 200.
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