“This is one of the most significant projects in the history of the IAASB.  Completion of this project will result in many improvements to the ISAs and significantly advance global convergence of auditing standards,” states Forum of Firms Chair David Maxwell. “We congratulate the Board on its sustained efforts over the past two years to get the project completed on a timely basis.”

The IAASB Clarity Project involves a comprehensive review of all ISAs and International Standards on Quality Control to improve their clarity and thereby their consistent application.

During the process, a number of standards, including those dealing with group audits, related parties, external confirmations, audit of accounting estimates, and the use of experts were also significantly revised in order to enhance audit quality in these key areas.

 Thirty-six standards in all were revised or restated. The due process surrounding their development and approval has been reviewed and endorsed by the Public Interest Oversight Board, an independent body established by the international financial regulatory community. All 36 clarified ISAs come into effect for audits of financial statements for periods beginning on or after December 15, 2009. 

“We have been encouraging Forum members to consider implementation matters as and when the standards were promulgated so they have sufficient time to update audit methodologies and training programs in advance of the effective date,” emphasizes Nick Fraser, chairman of the International Federation of Accountants Transnational Auditors Committee, the executive arm of the Forum of Firms.  “However, there is no doubt that timely adoption of the ISAs by national regulators will also provide significant impetus in promoting  the convergence process , and we look forward to seeing rapid progress in this respect.”