The International Federation of Accountants establishes
the International Auditing and Assurance Standards Board ( www.ifac.org/IAASB ) to replace
the International Auditing Practices Committee. The new body provides
guidance on audit and assurance functions and works to improve
uniformity of practice throughout the world. In one of its first
actions, the IAASB releases a practice statement, Electronic
Commerce—Effect on the Audit of Financial Statements, that
helps auditors apply three international standards on auditing: ISA
300, Planning ; 310, Knowledge of the Business ; and
400, Risk Assessments and Internal Controls.
The European Federation of Accountants (FEE) releases a
discussion paper on enforcement of high-quality financial reporting in
Europe ( www.fee.be/secretariat/Pressreleases.htm
). The study examines compliance issues central to European Union
companies’ implementation of international financial reporting
standards by 2005, as its members had agreed in 2000. It calls for EU
member states to review their accounting standards enforcement
policies and establish a joint enforcement commission to ensure
consistency.
