Recent corporate failures, and high-profile fraud cases have eroded trust in financial reporting and shaken public confidence. In response, investors, regulators, and audit professionals called for stronger auditing standards—especially regarding going concern and fraud. The IAASB answered that call by advancing two high-impact, public interest-focused projects to strengthen auditors’ responsibilities related to fraud and going concern.
Together, International Standard on Auditing 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, and ISA 570 (Revised 2024), Going Concern, address core public interest concerns, support higher audit quality, and deliver more decision-useful information to users of financial statements.
New 4-Part Video Series: What Auditors Need to Know About the New Fraud Standard
Introducing the Revised Fraud Standard
A Sharper Focus on Fraud Risk Assessment
A More Robust Response to Identified or Suspected Fraud
Enhanced Transparency in the Auditor's Report
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Final Standards
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Available Resources for Fraud
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Available Resources for Going Concern
Technical Overview Video
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Professional Skepticism, Fraud & Going Concern
Professional skepticism is a cornerstone of auditing.
It was a key focus in the revisions of ISA 570 (Revised 2024) and ISA 240 (Revised). This publication helps stakeholders understand how these revisions strengthen the consistent application of professional skepticism throughout an audit. It highlights key enhancements to both standards, reflecting efforts to reinforce professional skepticism by addressing, among other matters, how auditors are expected to:
- Maintain a questioning mindset,
- Consider contradictory evidence, and
- Appropriately challenge management’s assumptions.
Considering Early Adoption?
The IAASB encourages jurisdictions to consider early adoption of ISA 240 (Revised), ISA 570 (Revised 2024), and the narrow-scope amendments for publicly traded entities as a cohesive package. Together, these standards provide a stronger, more coordinated response to the risks of fraud and financial distress.