Auditing Standards Update 2023 (ADT196)

This session aims to discuss the latest amendments and updates to auditing standards, changes to audit quality management and the implication of climate risk to audit engagements.

Programme Outline

• Amendments to FRS 1 and FRS Practice Statement 2: Disclosure of Accounting Policies And the Implications on Auditor’s Report (SSA 700 and SSA 705
  • Amendment to FRS 1 in relation to disclosure of accounting policies
• Implications on auditor’s report
•  SSA 315 (Revised 2021) - Identifying and Assessing the Risks of Material Misstatement
  • SSA 315 (Revised 2021) deals with the auditor’s responsibility to identify and assess the risks of material misstatement in the financial statements. The amendments, which include enhancing the application of professional scepticism in audits, encourage a more robust risk assessment and thereby more focused responses to identified risks. Effective for audits of financial statements for periods beginning on or after 15 December 2021.
• Addressing Climate-Related Risks in Financial Statements and Audits of such Financial Statements
  • What are climate-related risks?
  • Which entities may be most affected?
  • What are management’s responsibilities?
  • What are the auditor’s responsibilities?
  • Climate-related Risks – Illustrative Example
  • Accounting and Auditing Considerations
• Quality Management Standards at the Firm and Engagement Level, including Engagement Quality Reviews
  • ISCA issues three interrelated standards that address quality management, namely:
  • Singapore Standard on Quality Management (SSQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements (previously SSQC 1)
  • SSQM 2, Engagement Quality Reviews
  • Singapore Standard on Auditing (SSA) 220 (Revised), Quality Management for an Audit of Financial Statements.