|
Among its many other impacts, the credit crisis of 2008 is affecting the auditing and actuarial worlds. Auditing Audit Issues when Financial Market Conditions are Difficult and Credit Facilities may be Restricted This bulletin from the UK Auditing Practices Board dates from January 2008. It focuses on the risks and uncertainties associated with reduced liquidity in the financial markets, the reduced availability of financing, and the valuation of investments. Challenges for Audit Committees Arising from Current Economic Conditions Financial Reporting Council, November 2008. The Financial Reporting Council is the UK's independent regulator responsible for promoting confidence in corporate reporting and governance. The second half of the document is a series of key questions for Audit Committees. Risk Alert, February 2008: Auditing in the Credit Crunch Environment This staff publication of the AASB high¬lights matters for auditors to consider when responding to higher risks of material misstatement of financial statements of entities that have invested in ABCP and other financial instruments affected by the credit crunch. Related matters, including the entity’s statutory disclosures and audi¬tor independence are also noted. Actuarial Challenges for Users of Actuarial Information Arising from Current Market Conditions Financial Reporting Council, December 2008. Appendix A, which takes up the latter half of this eight-page document, sets out some questions that members of governing bodies might like to consider as they make decisions based on actuarial information. Fair Value Estimating Fair Value of Financial Instruments in Inactive Markets This AcSB staff commentary from November 2008 provides guidance on estimating fair value for derivative instruments and debt and equity investments. Challenges in Auditing Fair Value Accounting Estimates in the Current Market Environment This IAASB Staff Audit Practice Alert from October 2008 discusses challenges faced in accounting on the basis of fair value, requirements and guidance in standards that are particularly relevant to fair values and other considerations in audits of fair value accounting estimates. Risk Alert, November 2008: Auditing Considerations Regarding Fair Value of Financial Assets in a Credit Crisis This AASB staff publication high¬lights the effects of recent economic developments that auditors may wish to consider in assessing and responding to risks of material misstatement in an entity’s financial statement related to the fair value of financial assets and reclassification of certain financial assets as a result of recent changes to accounting standards. Going Concern and Liquidity Risk An Update for Directors of Listed Companies: Going Concern and Liquidity Risk Financial Reporting Council, November 2008. This document brings together existing guidance in the context of recent developments relating to going concern and liquidity risk disclosures to assist directors, audit committees and finance teams of listed companies during the forthcoming reporting season. It may also be useful for directors of unlisted companies who have similar responsibilities to assess going concern and make appropriate disclosures. |
