Agenda item 5ISSAI 200 and ISSAI 1000- Changes to the ISSAIs

Objective of agenda item 5

• Discussion on consequences of approval of draft ISSAI 200

• Discussion on placement of old extant ISSAI 100-400

• Discussion on the use of ISSAI 1000 especially in light of new ISSAI 200

• Discussions on the need for updating the ISSAIs

Background

• ISSAI 200- Fundamental Principles of Financial Auditing approved at the PSC SC June 2013, to be endorsed at the congress in October 2013

• Discuss the use of ISSAI 200 and the different options for the ISSAIs on level 4, based on endorsement of new ISSAI 200

ISSAI 200

• Not to be used as standards• Sets out the principles to be followed when

developing auditing standards in line with INTOSAI ambitions

• Level 4 guidance is consistent with ISSAI 200

ISSAI 200

• Relevant only when developing own standards or?

• Can SAI have use of ISSAI 200 for other purposes• Information to stakeholders?• Peer reviews?

• How can FAS promote or inform about ISSAI 200?

ISSAI 1000- Content

• Introduction • Background • The Purpose of the INTOSAI Financial Audit Guidelines • Scope of the INTOSAI Financial Audit Guidelines • Structure and Content of the INTOSAI Financial Audit

Guidelines • Applying the INTOSAI Financial Audit Guidelines as Standards • Authority• General Issues in Audits of Public Sector Entities • Translation of the INTOSAI Financial Audit Guidelines

ISSAI 1000 Content

• Appendix 1 – Link between the INTOSAI Fundamental Auditing Principles (ISSAI 100–400) and the INTOSAI Financial Audit Guidelines (ISSAI 1000–2999)

• Appendix 2 – ISSAIs, effective for audits of financial statements for periods beginning on or after December 15, 2009

• Appendix 3 – The Authority Attached to the ISAs• Appendix 4 – Translation Recommendations• Appendix 5 – List of Abbreviations

ISSAI 1000 General Introduction

• Alternatives;1. Delete ISSAI 1000, issues considered

sufficiently covered by new ISSAI 2002. Retain ISSAI 1000, but delete parts not

relevant (this option is complicated due to the fact we also need to refer to the old ISSAI 100-400)

3. Retain the entire document, but change references (this option is complicated due to the fact we also need to refer to the old ISSAI 100-400)

Consequences

• Alternative 1 (delete 1000)• More references needed to ISSAI 200 in

separate level 4 documents• No explanation of scope and how the

ISSAIs are structured• Reference in all PNs to ISSAI 1000 are to

revised (new reference may be the authority in ISSAI 100)

• How to attend to the PSC suggestion to refer to the old ISSAI 100-400 in the guidelines?

Consequences

• Alternative 2 (delete parts of ISSAI 1000) • No duplication with ISSAI 200• The underlying view is that ISAI 200 and the

ISSAI 1000-1810 form part of the same set of standards

• Explanation of scope and how the ISSAIs are structured will still be available

• Limited needs for changing references, need to refer to two sets of ISSAIs on level 3

Consequences

• Alternative 3 (Retain entire ISSAI 1000)• Limited needs for changing references,

need to refer to two sets of ISSAIs on level 3

• Explanation of scope and how the ISSAIs are structured will be available

• Duplication of guidance (ISSAI 200/1000

Old Fundamental Principles- Suggestion PSC Secretariat.• The INTOSAI Auditing Standards from 1992

(“old” ISSAI 100-400)is annexed to the ISSAI 1000

• A footnote is inserted in ISSAI 1000/28 that explains the issue and/or the text in point (c) is modified to refer to the annex.

• This solution is complicated due to the large amount of references to these documents, that needs to be amended to refer to two sets.

Old Fundamental Principles- Suggestion PSC Secretariat cont.

• How do we best attend to the suggestion to have the old ISSAI 100-400 attached to the guidelines?

Other changes -

• Identified by different stakeholders and reported to the secretariat:

• Minor issues relating to:• ISSAI 1510• ISSAI 1805• ISSAI 1700• ISSAI 1570

• Some of these are listed in appendix 3 to this agenda item

Identified needs for amendments

• Amendments to ISSAI 1000 according to the discussions above

• Inclusion of “old” ISSAI 100-400 with relevant references

• Minor clarification to PNs in accordance with annex 3

• New ISSAI 1610• During next year new and updated ISSAI

1720 

Timing of changes

• PSC Maintenance frequency:• ISSAI 1000-1810 should be revised

when an underlying ISA is revised• Options

a) Attend to already identified needs during 2014- Approval by GB 2014

b) Attend to these together with the outcome of Auditor Reporting, ISA 720 revision, Disclosures amendments which may include significant changes, GB 2015

c) In all alternatives- present an updated version for endorsement in 2016