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Audit Evidence and Risk Response
Updated December 2024
At the December IAASB meeting, the integrated project proposal for audit evidence and risk response was approved unanimously. The project will consider possible revisions to ISA 330, The Auditor’s Responses to Assessed Risk, ISA 500, Audit Evidence, and ISA 520, Analytical Procedures.
In developing the project proposal, the project team liaised with the Risk Response Focus Group, the Audit Evidence Project Team and Chair, the Technology Consulting Group, and the Professional Skepticism Consultation Group.
In the first quarter of 2025, the project team will consider actions related to the first set of key issues defined in the project proposal.
For further information, visit the Audit Evidence and Risk Response project page.
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Experts Narrow-Scope Amendments
Updated December 2024
At its December 2024 meeting, the IAASB:
- Received an overview from the International Ethics Standards Board for Accountants (IESBA) on the recently approved revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) related to IESBA’s Using the Work of an External Expert project.
- Discussed the purpose and scope of the IAASB’s project to consider narrow-scope amendments to IAASB standards arising from these revisions to the IESBA Code.
At the March 2025 IAASB meeting, the Board will consider the approval of a project proposal and proposed Exposure Draft.
For further information, visit the Experts Narrow-Scope Amendments project page.
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Fraud
Updated December 2024
In December 2024, the IAASB discussed a summary of the feedback and the Fraud Task Force’s recommendations on the way forward for several questions in the Explanatory Memorandum to Proposed ISA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements and Proposed Conforming and Consequential Amendments to Other ISAs. Among other matters, the issues discussed related to professional skepticism, scalability and the effective date.
The IAASB also discussed a first full draft of proposed ISA 240 (Revised) and updates to the conforming and consequential amendments to other ISAs.
Since the September 2024 IAASB meeting, the Fraud Task Force has continued to engage with stakeholders to supplement comments received during the Exposure Draft’s public consultation.
The next discussion will be in March 2025, when the IAASB will consider a second full draft of the proposed standard. The IAASB will also vote on the approval of the standard.
For further information, visit the Fraud project page.
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Going Concern
Updated December 2024
The IAASB approved International Standard on Auditing 570 (Revised 2024), Going Concern, on December 12, 2024. The standard will be published following certification by the Public Interest Oversight Board, which is anticipated in April 2025. After certification and publication, the standard will be effective on audits of financial statements for periods beginning on or after December 15, 2026.
The revised going concern standard aims to promote consistent practice and behavior from auditors when addressing going concern. The key revisions proposed:
- Seek to enable a robust identification of events or conditions that may cast significant doubt on the entities ability to continue as a going concern, strengthen the auditor’s evaluation of management’s assessment of going concern, and support the appropriate exercise of professional skepticism, including to consider the risk of management bias.
- Extend the commencement date of the twelve-month period of management’s assessment of going concern that is used as the basis for the auditor’s evaluation from the date of the financial statements to the date of approval of the financial statements.
- Enhance transparency with respect to the auditor’s responsibilities and work related to going concern, including strengthening communications and auditor reporting requirements.
To learn more about the journey to this approved standard, visit the Going Concern project page.
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Listed Entities and Public Interest Entities (PIEs)
Updated December 2024
In September 2024, the IAASB decided to adopt the definition of “publicly traded entities” as a replacement for “listed entities” in the ISQMs and ISAs and a framework for determining when it may be appropriate to apply differential requirements for audits of PTEs to other entities. The adoption of “publicly traded entities” is aligned with the same concept used in the IESBA Code and will ensure greater global consistency in the application of the differential requirements in the ISQMs and ISAs.
In December 2024, the IAASB expressed its support for:
- the updated version of the narrow scope amendments relevant to Track 2 of the listed entity and PIE project, including the amendments to the newly approved ISA 570 (Revised 2024), Going Concern.
- the proposal to issue a ‘Post-Exposure Consultation: Invitation to Comment’ for release in February 2025 with a 45-day consultation period to ensure stakeholders are fully aware of the Board’s position and rationale relating to the PIE Track 2 project, and the pathway to broader differential requirements.
In June 2025, the PIE Task Force will present to the IAASB an analysis of respondent’s feedback on the Invitation to Comment. In addition, the IAASB will be asked to approve the proposed narrow scope amendments to the ISQMs, ISAs and ISRE 2400 (Revised), Engagements to Review Historical Financial Statements.
The “pre-final” narrow scope amendments to the ISQMs, ISAs, and ISRE 2400 (Revised) are available on the Listed Entity & PIE Track 2 project page.
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Sustainability Assurance
Updated January 2024
The IAASB has published ISSA 5000, General Requirements for Sustainability Assurance Engagements. Access the standard and the IAASB's range of implementation and guidance materials here.
The International Organization of Securities Commissions (IOSCO), the international body of securities regulators, has also issued a statement of support for ISSA 5000, highlighting how it fulfills key IOSCO recommendations to establish a comprehensive global assurance framework for sustainability-related corporate reporting. Read IOSCO’s statement here.
To learn more about the journey to this approved standard, visit the ISSA 5000 web page and the Sustainability Assurance project page.
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Technology – Disruptive Technologies
Updated December 2024
In September 2024, the IAASB adopted a new Technology Position that will guide how the IAASB adapts its work to embrace the intersection of audit, assurance, and technology. The Position comprises three components:
- Component 1: Technology Position Statement
The Statement articulates the IAASB’s commitment to actively facilitate and, where appropriate, encourage the appropriate use of technology by practitioners and firms, ensuring the standards remain relevant and effective.
- Component 2: Operationalizing the Technology Position Statement
To deliver on the commitment described in the Statement, the IAASB will identify standard-setting and other opportunities, including developing or facilitating the development of non-authoritative materials. The first activity undertaken in Component 2 is to conduct a technology gap analysis, which began in September and continued through December 2024. At its December 2024 meeting, the IAASB deliberated an updated gap analysis, which was presented as a Catalog of Issues and Proposed Actions.
At its March 2025 meeting, the IAASB will deliberate on a full draft of “Version 1.0” of the gap analysis. Version 1.0 will continue to evolve after the March 2025 meeting, incorporating insights from the IAASB’s efforts to monitor emerging technologies and stakeholder feedback.
- Component 3: Monitoring and Adapting the IAASB’s Technology Position
The IAASB will continuously monitor emerging technologies to ensure its standards remain relevant in the rapidly changing landscape. The Technology Position will be adapted as necessary to stay aligned with technological developments.
Learn more about the new Technology Position on its dedicated web page, which includes the new Technology Position and features a short video explaining the new forward-thinking approach.