International Federation of Accountants Professional Perspectives Through IFAC Initiatives: An International Auditing and Assurance Standards Board Perspective Jim Sylph Executive Director – Professional Standards IFAC & EBA Joint Conference Tallinn September 9,

ISA Implementation Challenges ISA Implementation Challenges ISA Implementation Support ISA Implementation Support Implementation MonitoringImplementation Monitoring Development of Alternative Assurance/Other ServicesDevelopment of Alternative Assurance/Other Services International Standards on Assurance EngagementsInternational Standards on Assurance Engagements Agenda 2

ISA Implementation Key principles for successful adoption and implementation:Key principles for successful adoption and implementation: –acceptance, availability, accessibility & awareness Challenges for successful implementationChallenges for successful implementation –Adoption at national level –Education and training of users –Updating of methodologies and audit plans –Translation ISA Implementation Challenges 3

ISA Implementation IAASB Clarity Center: Background and information on Clarity ProjectIAASB Clarity Center: Background and information on Clarity Project –Individual ISAs and Basis of Conclusions –Staff Updates, Alerts, FAQs, Q&A, etc. ISA Modules :ISA Modules : –Short videos and supporting slides covering m ain thrust of the revised ISA and significant changes –First release Q3 2009, free of charge from Center ISA Implementation Support 4 Introduction and Overview Overall Objectives of the Auditor Group Audits Accounting Estimates and Fair Values Related PartiesCommunications with Those Charged with Governance and Management

ISA Implementation IAASB is seeking feedback on implementation and effectiveness issues concerning the clarified ISAs ( )IAASB is seeking feedback on implementation and effectiveness issues concerning the clarified ISAs ( ) –Consultation with firms, regulators, audit oversight bodies, IAASB National Auditing Standard Setters (NSS) & others –Capturing first-year implementation experiences of selected NSS and audit firm early-adopters Questionnaire Questionnaire Differing national timetables necessitate iterative approach Differing national timetables necessitate iterative approach A post-implementation review of the ISAs is planned in the longer term (2012 or later)A post-implementation review of the ISAs is planned in the longer term (2012 or later) ISA Implementation Monitoring 5

Alternatives to the Audit Project approved March 2009; Issues Papers presented at the June and September 2009 IAASB meetingsProject approved March 2009; Issues Papers presented at the June and September 2009 IAASB meetings ISRE 2400 and ISRS 4410 highly relevant as exemptions from statutory audit requirements increase (e.g. as in many EU countries including Estonia)ISRE 2400 and ISRS 4410 highly relevant as exemptions from statutory audit requirements increase (e.g. as in many EU countries including Estonia) Priority given to revising these standardsPriority given to revising these standards Project considerations:Project considerations: –An audit is an audit, but … –Alternative services must be clearly distinguishable as to level of assurance (where applicable); required work effort –Communication to promote user understanding. Standards for Alternative Assurance & Other Services: Reviews and Compilations 6

International Standards on Assurance Engagements Approval of final ISAE expected September 2009Approval of final ISAE expected September 2009 Revision: ISAE 3402 Assurance Reports on Controls at a Third-Party Service Organization New ISAE: Pro-forma Financial Information included in Prospective Financial Information New ISAE: Assurance on Greenhouse Gas Statements Exposure draft expected December 2009 First IAASB project in the area of sustainability assurance Exposure draft under development Revision ISAE 3400: Examination of Prospective Financial Information Project proposal December