International Federation of Accountants International Auditing and Assurance Standards Board Status of Clarity Project and Other Activities INTOSAI PSC Steering Committee Meeting October 21-22, 2008

Clarity Project Project commenced in 2004Project commenced in 2004 ObjectiveObjective –Understandable, clear standards capable of consistent application Each redrafted International Standard on Auditing (ISA) contains:Each redrafted International Standard on Auditing (ISA) contains: –Objective(s) of the auditor –Requirements –Application and other explanatory material Including public sector audit considerationsIncluding public sector audit considerations IAASB Update

Clarity Project Public sector audit considerations developed with assistance of:Public sector audit considerations developed with assistance of: –INTOSAI FAS experts on IAASB Task Forces –INTOSAI FAS Clarity Reference Group –INTOSAI nominated IAASB member and technical advisor IAASB Update

Clarity Project Final three ISAs to be approved by the IAASB in December 2008Final three ISAs to be approved by the IAASB in December 2008 Consistency review in progressConsistency review in progress PIOB due process confirmation in February 2009PIOB due process confirmation in February 2009 Project to be completed in March 2009Project to be completed in March 2009 Effective date December 15, 2009Effective date December 15, 2009 IAASB Update

2009 Work Program Audit of financial statementsAudit of financial statements –ISA 610 on using the work of internal audit –ISA 700 on auditors’ reports –Reporting on XBRL financial statements Other assurance servicesOther assurance services –ISRE 2410 on review of financial statements –ISAE 3000 on other assurance engagements –Reporting on carbon emissions information –Reporting on sustainability reports –Reporting on pro forma financial statements –Reporting on prospective financial information IAASB Update

2009 Work Program Other projectsOther projects –Fair value audit guidance –Review of International Auditing Practice Statements –Review of implementation guidance –Process for impact assessments –Process for effectiveness review –Audit quality IAASB Update

IFAC-IAASB-INTOSAI Relationship Various reviews currently being conductedVarious reviews currently being conducted –IFAC: Reform proposals – effectiveness review –IFAC: Efficiency review –FAS: World Bank review –PSC: Beyond 2010 proposals ProposalProposal –Review scope and form of relationship in early 2009, taking account of findings of reviews IAASB Update

IFAC-IAASB-INTOSAI Relationship Consider scope of relationshipConsider scope of relationship –Established: IAASB (audit but what about other assurance?)IAASB (audit but what about other assurance?) International Public Sector Accounting Standards Board (IPSASB)International Public Sector Accounting Standards Board (IPSASB) –What about: International Ethics Standards Board for Accountants I IESBA)?International Ethics Standards Board for Accountants I IESBA)? Professional Accountants in Business (PAIB) Committee?Professional Accountants in Business (PAIB) Committee? Implementation support?Implementation support? News INTOSAI PSC project on quality control?News INTOSAI PSC project on quality control? IAASB Update

KEY ACCOUNTABILITY OVERSIGHT CONSULTATION/ADVICE

IFAC-IAASB-INTOSAI Relationship Consider different forms of cooperationConsider different forms of cooperation –Standard setting board member / technical advisor / observer –IAASB staff involvement in PSC-related projects –PSC Subcommittee nominee involvement in IAASB- related projects –Membership of Consultative Advisory Group IAASB Update

International Federation of Accountants