Image
Audit Evidence
Updated March 2024
Since the public consultation on proposed ISA 500 (Revised), Audit Evidence closed in April 2023, the IAASB has been considering respondents’ feedback. As of March 2024, work to finalize the revisions of the standard has paused to allow further development of the integrated project on audit evidence and risk response (see below for status of this project).
The key matters discussed up to March 2024 include:
- Further enhancing the standard to modernize the requirements and application guidance for the auditor’s use of automated tools and techniques in audits of financial statements.
- Clarifying key concepts to support practical application of the standard, such as the definition of audit evidence and the interrelationship between sufficiency, appropriateness, and persuasiveness of audit evidence.
- Enhancing the requirements for evaluating the relevance and reliability of information used as audit evidence, including the conditional requirement to obtain audit evidence for accuracy and completeness.
- Removing the stand-back requirement to evaluate the audit evidence obtained and revising the objective of the standard.
- Streamlining the application material and other enhancements aiming to achieve an optimal balance between requirements and guidance in the revised standard.
For further information, visit the Audit Evidence project page.
Image
Audits of Financial Statements of Less Complex Entities
Updated June 2024
Since the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) was issued in December 2023, the IAASB is focusing on developing resources to support its adoption and implementation. All published resources can be found on the ISA for LCE web page. In Q3 2024, the IAASB will issue:
- Supplementary guide on the authority of the standard
- Supplementary guide on auditor reporting
- An adoption guide
- A first-time implementation guide
In addition, the IAASB continues to participate in outreach activities and has obtained feedback from the IAASB-IESBA Stakeholder Advisory Council to further promote and support the adoption and implementation of the ISA for LCE.
For further information, visit the ISA for LCE web page.
Image
Fraud
In June 2024, the public consultation on the exposure draft for the Proposed International Standard on Auditing (ISA) 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements closed. Eighty-nine written responses were received from a broad range of stakeholders.
Since then, the project team has been analyzing the comment letters received, undertaking further outreach, and identifying key themes to be discussed with the Fraud Task Force in July 2024. The next IAASB discussion will be in September 2024. The IAASB will consider the feedback on prominent themes and the Fraud Task Force’s related views and recommendations to update the standard post exposure draft.
For further information, read the exposure draft and comment letters and visit the Fraud project page.
Image
Going Concern
In March 2024, a high-level overview of the stakeholder feedback to Proposed International Standard on Auditing 570 (Revised 202X), Going Concern and Proposed Conforming and Consequential Amendments to Other ISAs (ED-570) was presented to the IAASB. Since then, the Going Concern Task Force has continued its outreach with stakeholders to supplement the comments received on ED-570. This included focused discussions with investors or users of financial statements; engagement with the International Accounting Standards Board; and seeking strategic input from the IAASB-IESBA Stakeholder Advisory Council on key public interest issues.
In June 2024, a detailed analysis of respondents’ feedback on selected questions in the Explanatory Memorandum to ED-570 was presented to the IAASB. The Board also discussed the Going Concern Task Force’s views and recommendations on key themes to update the standard post exposure draft. This included themes identified in responses where a range of views was received, such as the timeline over which the going concern assessment is made and transparency about going concern in the auditor’s report.
The next discussion for going concern will be in September 2024, when the IAASB will consider the analysis of respondents’ feedback for the remaining questions in the Explanatory Memorandum to ED-570 along with the Going Concern Task Force’s proposals. In addition, the IAASB will review the first full draft of the revised going concern standard.
For further information, visit the Going Concern project page.
Image
Integrated Project - Risk Response Workstream
Updated June 2024
During the second quarter of 2024, the IAASB continued its information-gathering activities, aiming to better understand the source and impact of the issues that have prompted the need to consider possible revisions to ISA 330, The Auditor's Responses to Assessed Risks and ISA 520, Analytical Procedures.
This quarter included:
- Targeted stakeholder outreach focused on practitioners, regulators, and jurisdictional and national standard setters.
- A review of academic research and online research, including inspection findings reports, and other publications from regulatory or standard-setting bodies.
In addition, the project team has started developing an integrated project proposal for the revision of ISA 500, Audit Evidence, ISA 330 and ISA 520, including liaising with the Risk Response Focus Group, the Audit Evidence Project Team and Task Force, and the Technology Consultation Group. Ahead of presenting a first draft of the project proposal to the IAASB in September 2024, the project team will continue to gather information from stakeholder groups and liaising with relevant internal groups. The project team will also continue its coordination with the International Ethics Standards Board for Accountants.
At the December 2024 meeting, the project team intends to share a final draft of the project proposal for approval.
For further information, visit the Integrated Project – Risk Response Workstream project page.
Image
Listed Entities and Public Interest Entities (PIEs)
Updated June 2024
In April 2024, the public consultation on the exposure draft for the Proposed Narrow Scope Amendments to International Standards on Quality Management (ISQMs), ISAs and International Standard on Review Engagements 2400 (Revised), Engagements to Review Historical Financial Statements as a Result of Revisions to the Definitions of Listed Entity and Public Interest Entity in the IESBA Code closed. Forty-six written responses were received from a broad range of stakeholders.
Since then, the project team and PIE Task Force have been analyzing the comment letters and has liaised with IESBA. In particular, the IAASB and IESBA discussed how to further align the identification of entities to be treated as PIEs for the purpose of the differential requirements in the ISQMs and ISAs with the identification of entities to be treated as PIE for the purpose of the independence requirements in the IESBA Code.
The next discussion with the IAASB will be in September 2024 when the IAASB will consider respondents’ feedback and deliberate proposed revisions to the narrow scope amendments that were presented in the exposure draft.
For further information, visit the proposed revisions web page and the Listed Entities & PIE Track 2 project page.
Image
Sustainability Assurance
Updated June 2024
In August 2023, the IAASB issued proposed International Standard on Sustainability Assurance (ISSA)™ 5000, General Requirements for Sustainability Assurance Engagements (ED-5000) for public comment by December 1, 2023.
At the March and June 2024 IAASB meetings, the IAASB received a comprehensive analysis of respondents’ feedback to the questions in the Explanatory Memorandum to ED-5000 and the Sustainability Assurance Task Force’s views and recommendations to update the standard post exposure draft. In June 2024 the Board also discussed a full draft of proposed ISSA 5000.
The remaining question on the effective date of proposed ISSA 5000 will be considered by the Board at the September 2024 IAASB meeting.
The IAASB intends to approve the final standard in September 2024 for publication before the end of 2024, after certification of the standard by the Public Interest Oversight Board. The project team also aims to issue an ISSA 5000 implementation guide at the same time.
To follow the journey in developing the proposed standard, including IAASB meeting papers, visit the Assurance on Sustainability Reporting project page and the ISSA 5000 web page.
Image
Technology – Disruptive Technologies
Updated April 2023
The IAASB is taking an ongoing, dual approach to Technology matters:
- Current and future workplan actions – Exploring how the IAASB can most effectively respond to technology via new or revised international standards or nonauthoritative guidance.
- Impact of disruptive technologies – Exploring the effect on audit and assurance (in the current and future environments) in order to be prepared for technology disruption and able to respond appropriately to support audit and assurance quality.
The IAASB has released a number of resources, which are available on our technology focus area page. The IAASB meeting in March 2023 included updates on Disruptive Technology, as well as findings related to technology adoption and barriers to adoption from outreach. The IAASB provided their views and feedback, including suggested ways forward.