CIRCULAR MF15/2010: PROPOSED INTERNATIONAL AUDITING PRACTICE STATEMENT 1000

01 Dec 2010

Circular MF15/2010

TO ALL MEMBER FIRMS

1. PROPOSED INTERNATIONAL AUDITING PRACTICE STATEMENT 1000
2. PROPOSED INTERNATIONAL STANDARD ON RELATED SERVICES 4410

The Institute is pleased to inform members that the Council has approved the release of the exposure draft on International Auditing Practice Statement ("IAPS") 1000, Special Considerations in Auditing Complex Financial Instruments and International Standard on Related Services ("ISRS") 4410, Compilation Engagements for distribution to members, regulatory bodies and other interested parties for comment.

The exposure draft is drawn primarily from the pronouncement issued by the International Auditing and Assurance Standards Board ("IAASB") of the International Federation of Accountants.

PROPOSED INTERNATIONAL AUDITING PRACTICE STATEMENT 1000, SPECIAL CONSIDERATIONS IN AUDITING COMPLEX FINANCIAL INSTRUMENTS

The proposed IAPS 1000 highlights practical considerations for auditors when dealing with complex financial instruments. The proposed IAPS 1000 gives particular emphasis to auditing considerations relating to valuation and disclosure issues for financial statement items measured at fair value.

Along with the proposed IAPS 1000, the IAASB is also exposing for comment proposed changes to the current Preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services which explains the authority of this and future IAPSs.

		Deadline for comment
ED Preface/2010, ED IAPS 1000/2010	Proposed Amendments to the Preface to the International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements IAPS 1000 Special Considerations in Auditing Complex Financial Instruments Click HERE to download ED Preface /2010 and ED IAPS 1000/2010.	31 Dec 2010

PROPOSED INTERNATIONAL STANDARD ON RELATED SERVICES 4410, COMPILATION ENGAGEMENTS

The proposed ISRS 4410 is the first step in the IAASB's work to create robust standards for services that can be used by entities that are either not required or do not elect to be audited to meet their business reporting needs. Through a compilation engagement, practitioners can provide significant benefit by applying their expertise in accounting and financial reporting. This expertise is applied to assist the management of an entity in preparing and presenting historical financial information for use by the entity’s internal or external stakeholders.

		Deadline for comment
ED ISRS 4410/2010	ISRS 4410 Compilation Engagements Click HERE to download ED ISRS 4410/2010.	31 Jan 2011

Comments may refer to any specific principles, paragraphs or group of paragraphs and suggestion for alternative solution or wording with supporting reasons. These comments will be collated and, where appropriate, incorporated into the proposed exposure drafts before being issued in final form.

Comments should be submitted in writing and are to be received by the deadline.

Members can download the said exposure draft from our website at http://www.mia.org.my under the Technical-Auditing-Circulars link.

Please be guided accordingly.


HO FOONG MOI (MS)
Executive Director
On behalf of the Registrar