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quality control and auditor reporting standards. Thesehave all been redrafted in accordance with the IAASB'snew drafting conventions designed to improve the clarityof its pronouncements.Further information about each exposure draft andthe changes proposed therein is provided in theexplanatory memorandum at the beginning of the exposuredrafts. The exposure drafts may be viewed by going tohttp://www.ifac.org/EDs.Quality Control Exposure DraftsThe IAASB has issued proposed International Standard onQuality Control (ISQC) 1 (Redrafted), Quality Control forFirms that Perform Audits and Reviews of Financial Statements,and Other Assurance and Related Services Engagements, alongwith proposed International Standard on Auditing (ISA)220 (Redrafted), Quality Control for an Audit of FinancialStatements."Together, these standards deal with importantquality control considerations at both the firm andengagement levels. The standards are closely linked, andtherefore, implementing clarity revisions at the same timemakes sense to ensure consistency between them," explainsJohn Kellas, IAASB Chairman.Auditor Reporting Exposure DraftsThe IAASB has also addressed the clarification of its auditorreporting standards. The proposed clarified auditorreporting standards comprise:• ISA 700 (Redrafted), The Independent Auditor's Report onGeneral Purpose Financial Statements;• ISA 705 (Revised and Redrafted), Modifications to theOpinion in the Independent Auditor's Report;• ISA 706 (Revised and Redrafted), Emphasis of MatterParagraphs and Other Matter(s) Paragraphs in theIndependent Auditor's Report;• ISA 800 (Revised and Redrafted), Special Considerations- Audits of Special Purpose Financial Statements and SpecificElements, Accounts or Items of a Financial Statement; and• ISA 805 (Revised and Redrafted), Engagements to Reporton Summary Financial Statements.Proposed ISA 700 (Redrafted) redrafts a standard thatwas revised in 2004. The other reporting standards havebeen fully revised to update them and make themconsistent with ISA 700. Those revisions were completedand approved by the IAASB in 2006, and the standards arenow being issued for comment only on their redrafting intothe new clarity conventions.Other Proposed StandardsIn addition, the IAASB has issued exposure drafts ofproposed ISA 510 (Redrafted), Initial Audit Engagements -Opening Balances, and proposed ISA 530 (Redrafted), AuditSampling.Progress of the Clarity ProjectAll of the proposed standards have been drafted inaccordance with the IAASB's new drafting conventions.These conventions include the specification of an objectivewithin each standard and separate section forrequirements and application and other material.The IAASB has now approved five final ISAs draftedin accordance with the new conventions and, including theeight just released, 23 exposure drafts of ISAs. The IAASBexpects to issue a further seven exposure drafts this year,and to complete all 35 ISAs as final standards by the endof 2008.Further information on the Clarity project may beobtained from http://www.ifac.org/IAASB/downloads/IAASB_Clarity_Status_Report.pdf.How to CommentRecognising the number of exposure drafts being issued,the IAASB has staggered the deadlines for comments:• Comments on the exposure drafts of proposed ISA 510(Redrafted) and ISA 530 (Redrafted) are requested byOctober 31, 2007.• Comments on the exposure drafts of proposed ISA 700(Redrafted), ISA 705 (Revised and Redrafted), ISA 706(Revised and Redrafted), ISA 800 (Revised and Redrafted)and ISA 805 (Revised and Redrafted) are requested byNovember 30, 2007.• Comments on the exposure drafts of proposed ISQC 1(Redrafted) and ISA 220 (Redrafted) are requested byDecember 31, 2007.Comments should be submitted by email toEDComments@ifac.org. They may also be faxed to IAASBED Comments, at +1-212-286-9570 or mailed to IAASB EDComments at 545 Fifth Avenue, 14th Floor, New York, NY10017, USA. All comments will be considered a matter ofpublic record and will ultimately be posted on the IFACwebsite.(Source: www.ifac.org)IFAC's International Ethics StandardsBoard for Accountants InvitesComments on Proposed StrategicPlanThe International Ethics Standards Board for Accountants(IESBA), an independent standard-setting board within theInternational Federation of Accountants (IFAC), is seekingcomment from IFAC member bodies, regulators, nationalethical standard setters, accountants in professionalpractice and accountants in business and other interestedparties on an exposure draft of its Strategic and OperationalPlan for the period 2008-2009.The objective of the IESBA is to serve the publicwww.micpa.com.myJune/August 2007 | The Malaysian Accountant |51