Brunei Darussalam to Adopt New Financial Compliance Audit Procedures

Enhancing Transparency and Credibility of Financial Statements

The Public Accountants Oversight Committee (PAOC) has announced that it will adopt new international standards on auditing and quality control, aimed at enhancing the transparency and credibility of financial statements in Brunei Darussalam.

Adoption of International Standards

The International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC) has issued a set of standards known as:

International Standard on Quality Management 1 (ISQM 1)
International Standard on Quality Management 2 (ISQM 2)
International Standards on Auditing 220 (Revised)

These new standards will replace the current IAASB’s International Standards on Quality Control 1 and International Standards on Auditing 220, effective from December 15th, 2022.

Benefits of Adoption

The adoption of these new standards is expected to bring numerous benefits, including:

Ensuring that audits are performed with due diligence, efficiency, and care
Providing reasonable assurances of compliance to professional standards and legal requirements
Enhancing stakeholder confidence in audit opinions

Objectives of the New Standards

The new standards aim to:

Address stakeholder expectations
Strengthen the monitoring and robustness of engagement quality reviews
Promote proactive and adaptive quality management systems

Resources for Further Information

Stakeholders can refer to the IAASB’s website at https://www.iaasb.org/focus-areas/quality-management for further information on the new standards.

Compliance Deadline and Inquiries

The PAOC has encouraged public accountants and accounting entities registered under the Accountants Order, 2010 to familiarize themselves with the new standards and ensure compliance by the specified deadline.

Inquiries regarding the adoption of these new standards can be directed to the PAOC Secretariat at revenue@mofe.gov.bn or 2383933/2380651.