Report on the Observance of Standards & Codes (ROSC) Accounting & Auditing (A&A) MODULE B: INSTITUTIONAL FRAMEWORK FOR CORPORATE FINANCIAL REPORTING B.9 Auditing Standard-Setting TABLE OF CONTENTS INTRODUCTION TO THE QUESTIONNAIRE 3 A. INSTITUTIONAL ENVIRONMENT FOR STANDARD-SETTING 4 B. ADOPTION OF ISa 5 C. STANDARD-SETTING PROCESS FOR NATIONAL AUDITING STANDARDS 7 D. OTHER ASPECTS OF THE STANDARD-SETTING PROCESS 9 Additional information 10 © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org 2 ROSC Accounting & Auditing Module B: Institutional Framework – B.9 Auditing Standard-Setting INTRODUCTION TO THE QUESTIONNAIRE The purpose of this questionnaire is to gain an understanding of the governance arrangements, procedures and capacity for setting auditing standards in a jurisdiction, covering (a) the adoption of International Standards on Auditing (ISA) where applicable, and (b) national auditing standards. The questions are based on examples of good practice followed by international standard-setting bodies. The questionnaire is structured as follows: A. Institutional environment for standard-setting B. Adoption of ISA C. Standard-setting process for national auditing standards D. Other aspects of the standard-setting process How should the questionnaire be completed? • This questionnaire should be completed by the body responsible for setting auditing standards in the jurisdiction. • Where applicable, state the legal instrument or code that establishes a requirement and the date of enactment. 3 ROSC Accounting & Auditing Module B: Institutional Framework – B.9 Auditing Standard-Setting Please provide the following information when completing this questionnaire. Country Organization Date of preparation Telephone number Individual(s) responsible for preparation Address Job Title(s) Email A. INSTITUTIONAL ENVIRONMENT FOR STANDARD-SETTING 1. Please indicate which body is responsible for setting auditing standards in the jurisdiction and whether this authority has been established by law or regulation. 2. Please describe the membership/composition of the standard-setting body. 3. Please describe the process for selecting/appointing members (including ex-officio members) to the standard- setting body, including any required qualifications. 4 ROSC Accounting & Auditing Module B: Institutional Framework – B.9 Auditing Standard-Setting 4. Please describe the sources of funding for the standard-setting body and the amount of its annual budget (e.g., subsidies from government, revenues from commercial activities, in-kind contributions etc.). 5. Describe the process for determining, implementing and reporting on the work program of the standard- setting body. 6. Is the standard-setting process subject to independent oversight? If so, please indicate which body is responsible and briefly describe the oversight activities performed. 7. Do the auditing standards issued or adopted by the standard-setting body have legal standing in the jurisdiction (i.e. are auditors1 required by law to comply with the standards)? B. ADOPTION OF ISa 8. Have International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB) been adopted by the national standard-setting body? If so, please indicate (i) whether ISA have been adopted in law, (ii) whether ISA have been reissued as national standards, and (iii) the year of ISA currently in use. 1 Note that the term ‘auditor’ here refers to professional accountants that are licensed to perform audits that are required by law, also known as ‘statutory auditors’. 5 ROSC Accounting & Auditing Module B: Institutional Framework – B.9 Auditing Standard-Setting 9. If ISA have been adopted, please indicate whether the original standards as issued by the IAASB have been modified in any way for use in the jurisdiction (e.g., “carve-outs”, additional requirements, and options prohibited). 10. Where modifications to ISA have been made, please indicate which standards have been modified and briefly describe the modification(s) and the rationale. 11. Where ISA have been adopted but the standards in use are not those currently in issue by the IAASB, please describe the process to make the standards current. 12. Where ISAs have been adopted in full (i.e. without modifications), please describe the process for approving (or “endorsing”) new standards issued by, or revisions to existing standards approved by, the IAASB. 13. Have the international quality control standards been adopted in the jurisdiction, in particular, the International Standard on Quality Control 1 Quality Control for Firms that Perform Audits and Reviews of Financial Statements and other Assurance and Related Services engagements? If so, please describe the process for approving (or adopting or “endorsing”) the standards if different from that of ISA. 6 ROSC Accounting & Auditing Module B: Institutional Framework – B.9 Auditing Standard-Setting 14. Please indicate whether standards for other assurance engagements and related services issued by the IAASB have been adopted in the jurisdiction. If so, please describe the process for approving (or adopting or “endorsing”) the standards if different from that of ISA. C. STANDARD-SETTING PROCESS FOR NATIONAL AUDITING STANDARDS 15. Where full and current ISA have not been adopted, how often are national auditing standards updated? 16. Where full and current ISA have not been adopted, indicate which (if any) of the following form part of the process for issuing new national auditing standards and/or revisions to the standards, selecting all that apply: Conducting research and producing Issuing standard (or revised standard as discussion papers applicable) Developing and issuing draft standards Issuing interpretation guidance Public consultation period Issuing implementation guidelines Publication of responses Post-implementation reviews Other (please explain) 17. If discussion papers are produced as part of the development process for new/revised standards, briefly describe the process. 18. If drafts for new/revised standards are circulated prior to issuance, describe this process. 7 ROSC Accounting & Auditing Module B: Institutional Framework – B.9 Auditing Standard-Setting 19. If there is public consultation for draft standards, please indicate the following: Comments a. The length of the consultation period for: i. Discussion papers ii. Draft standards b. Whether consultation is open to the general public c. If consultation is only with certain stakeholders, please specify which. d. Whether public consultation is a statutory requirement. 20. If guidance to facilitate interpretation of the standard is produced, describe this process. 21. If guidelines on implementation of the standard are produced, describe this process. 22. If post-implementation reviews are performed following issuance of the standard, describe this process. 8 ROSC Accounting & Auditing Module B: Institutional Framework – B.9 Auditing Standard-Setting D. OTHER ASPECTS OF THE STANDARD-SETTING PROCESS 23. Is English the business language in the jurisdiction? If not, and ISA have been adopted, please indicate the following: Comments a. Which version of ISA is being used, noting the year and date of translation. b. Name of the body which performs the translation and its sources of funding c. Average time taken for the translated standards to be issued. 24. Please briefly describe the dissemination process of new and/or revised standards to the profession and to stakeholders such as academia, businesses and the wider public (e.g., publications, conferences, workshops etc.) 25. Does the national standard-setting body contribute to the international standard-setting process of the IAASB? For example, by participating in working groups, responding to public consultations etc. Please briefly describe. 9 ROSC Accounting & Auditing Module B: Institutional Framework – B.9 Auditing Standard-Setting Additional information Please indicate the corresponding section and question number if using this page to provide additional information. 10