Ifiar Update

IFIAR Update

30 June 2011

The International Forum of Independent Audit Regulators (IFIAR), a group of approximately 40 national audit regulators, continues to be active in promoting auditquality with the six largest networks. IFIAR was established with the objective of sharing knowledge of the audit market environment and practical experience in independent audit regulatory activity witha focus on inspections of auditors and audit firms. IFIAR also promotes collaboration in regulatory activity and provides a platform for contacts with other international organisations that have aninterest in audit quality. Further information about IFIAR is available at www.ifiar.org.

In June 2011, the IFIAR Global Public Policy Committee Working Group met the six largest networks inprivate and in group sessions. This was a follow-up to similar meetings that took place between the IFIAR Working Group and the networks in February 2011. We updated IFIAR on actions the Network has orwill be taking to improve audit quality in the four priority areas - professional scepticism; group audits; auditing revenue recognition; and engagement quality control reviewer. These areas wereidentified by IFIAR in March 2010 as requiring improvement by each of the networks. IFIAR remains keenly interested in progress in these areas and IFIAR members are likely to raise them in connectionwith their inspections of member firms over the next several months.

We are taking several actions at a network-level to address the four priority areas. These include developing mandatorypartner/manager training on applying professional scepticism, enhancing the Assurance Core Curriculum (auditor training for Years 1 to 4) to further emphasise the importance of professional scepticism,surveying auditors and holding focus groups on issues encountered in applying the group audits international standard on auditing, Global ACS and industry communications on revenue recognition and updating...