Result of international auditing standards adaptation for application in Spain (NIA-ES).
On internal quality control standards to adapt international quality management standards 1, 2 for application in Spain (NIGC 1-ES and NIGC 2-ES), glossary of terms.
Follows ESP GVT Jul. 2023 issued resolution of Accounting Institute (ICAC), #180722.
Overview
Recalls Resolution of Dec. 2023, published Technical Auditing Standard, the result of adapting International Standard for application in Spain, NIA-ES 600 (Revised) Special considerations Audits of group financial statements; further details are also provided.
In 2022, once adaptation of regulatory body approved by IFAC up to that date was completed, ICAC, together with public law corporations representing account auditors, started work on updating standards and glossary published to date via resolutions.
That with triple objective: updating normative references in explanatory notes to sections of published NIA-ES, if appropriate, to definitions in Glossary of Terms, to Law 22/2015 on Audit of Accounts (LAC) and its development rules i.e. RD 2/2021 (RLAC).
Also consistency changes between standards, already included by IAASB in revised standards published by IFAC, to text of ISA-ES, ISGC 1-ES, ISGC 2-ES and Glossary.
Plus homogenization of names used and presentation format of ISA-ES, ISGC 1-ES and ISGC 2-ES and the Glossary of Terms published to date.
Set of standards and glossary in this Resolution is updated as of date of its publication.
Key Aspects
These standards keep nature of Technical Audit Standards and Internal Quality Control Standards, respectively, in line with art 2 of LAC, as no adoption of ISAs by the EC.
The glossary expands to incorporate definitions re Internal Quality Control Standards.
Resolution accompanied by 2 annexes to facilitate knowledge and identification of the concordance modifications incorporated in the Standards and in the Glossary of Terms.
Thus, while Annex I has updated texts of all NIA-ES, NIGC-ES and Glossary of Terms adopted to date, Annex II compiles concordance modifications incorporated in each of Standards and, consequently, in the Glossary of Terms included in Annex I.
As well as modifications included in explanatory notes to sections affected by update.
In short, the Resolution includes Technical Audit Standards, Internal Quality Control Standards and Glossary of Terms, result of updating NIA-ES, NIGC-ES and published Glossary of Terms and replaces the texts in force until now, which are repealed.
Recalls public consultation was held re this update but no comments received; details.
Thus, issues Technical Audit Standards, Internal Quality Control Standards, Glossary result of updating NIA-ES, NIGC-ES and Glossary published by Res of Oct. 15 of 2013, Dec. 23, 2016, Oct. 27, 2020, Feb. 9, 2021 (only in part re modification of ISA-ES 700 (Revised), Formation of opinion, issuance of report of audit on financial statements).
As well as Resolutions Oct. 14, 2021, Apr. 20, 2022 and Dec. 20, 2023, now repealed.
Effectiveness
Mandatory for account auditors, audit companies in development of their work, audit of accounts referring to annual accounts or other financial statements or accounting documents corresponding to financial years beginning on or after Jan. 1, 2024.
In any case, it will apply to account audit work contracted or commissioned as of Jan. 1, 2025, regardless of financial years to which statements subject of the work refer.
Internal Quality Control Standard NIGC 1-ES will come into force on Jan. 1, 2024.
However, quality management systems of account auditors, account audit companies must be designed and implemented per requirements set therein, as of Jun. 1, 2024.
It also repeals all the above-mentioned resolutions.
Regulators
ESP GVT
Entity Types
Auditor; Corp
Reference
OG, BOE-A-2024-8358, 4/25/2024; Res 4/11/2024; LAC Law 22/2015; RLAC RD 2/2021;Rpl Res 10/15/2013, 12/23/2016, 10/27/2020, 2/9/2021, 10/14/2021, 4/20/2022, 12/20/2023; NIGC 1-ES; NIGC 2-ES
