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Audit Evidence
Updated September 2024
Prior to the September 2024 meeting, the project team met with stakeholders and conducted information-gathering and research to understand the source and impact of the specific issues that prompted the IAASB to consider revisions to ISA 330, The Auditor's Responses to Assessed Risks and ISA 520, Analytical Procedures.
In addition, the project team benefited from the input of the Risk Response Focus Group and coordinated with the International Ethics Standards Board for Accountants (IESBA), the IAASB’s Technology workstream, and the staff lead and chair of the Audit Evidence Task Force.
Based on further refinement of the issues discussed at the March 2024 IAASB meeting and in adopting a fully integrated approach in addressing the “reference framework” and “performance” aspects of obtaining and evaluating audit evidence, the project team developed a draft project proposal to concurrently revise auditing standards relating to audit evidence (ISA 500) and responding to assessed risks of material misstatement (ISA 330 and ISA 520), including a focus on internal control and technology.
In Q4 2024, the project team will further refine the project proposal to reflect the IAASB’s input and present a revised project proposal to the IAASB for approval in December 2024.
For further information, visit the Integrated Project – Risk Response Workstream project page.
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Audits of Financial Statements of Less Complex Entities
Updated September 2024
Since the ISA for LCE was published in December 2024, the IAASB has focused on developing resources to support adoption and implementation, which can be found on the ISA for LCE web page. In Q4 2024, the IAASB will issue a first-time implementation guide. In addition, the IAASB has participated in several events and webinars to continue promoting adoption.
For further information, visit the ISA for LCE web page.
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Fraud
Updated September 2024
In September 2024, the IAASB reviewed a feedback summary for some of the 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 and the Fraud Task Force’s recommendations on how to best address them. The IAASB deliberated on:
- Auditor’s responsibilities related to fraud;
- Risk identification and assessment;
- Fraud or suspected Fraud; and
- Transparency on fraud-related matters in the auditor’s report.
During the December 2024 meeting, the IAASB will consider feedback and related recommendations from the Fraud Task Force for the remaining questions. In addition, the IAASB will review the first full draft of the revised fraud standard.
For further information, read the proposed revisions and visit the Fraud project page.
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Going Concern
Updated September 2024
In September 2024, the IAASB discussed stakeholder feedback for the remaining questions in the Explanatory Memorandum to Proposed International Standard on Auditing 570 (Revised 202X), Going Concern and Proposed Conforming and Consequential Amendments to Other ISAs, except relating to the proposed effective date. The IAASB also discussed the Going Concern Task Force’s recommendations for how to best address the key themes identified.
Since June 2024, the Going Concern Task Force has continued to engage with stakeholders to supplement the comments received during the exposure draft’s public consultation. This included discussions with prudential regulators and engagement with the International Accounting Standards Board and the American Institute of Certified Public Accountants.
The next discussion for going concern will be in December 2024, when the IAASB will consider a second full draft of the updated standard, stakeholder feedback for the proposed effective date, and updates to the conforming and consequential amendments to other ISAs. In addition, the IAASB will be asked to vote on the approval of the revised going concern standard.
For further information, visit the Going Concern project page.
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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.
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Listed Entities and Public Interest Entities (PIEs)
Updated September 2024
Due to possible divergence highlighted in feedback received between the International Ethics Standards Board for Accountants (IESBA) PIE revisions and IAASB’s proposals for determining which entities should be treated as PIEs, the PIE Task Force questioned if the project objective of convergence, to the greatest extent possible, with the definitions and key concepts of the IESBA PIE revisions was achievable. The PIE Task Force developed two options for the Board’s consideration that would achieve convergence to different degrees.
After discussion, the IAASB opted to adopt the definition of “publicly traded entities” and the framework to identify other entities to apply differential requirements into the ISQMs and ISAs. This option excludes, at this stage, the adoption of a PIE definition for the IAASB standards. The adoption of “publicly traded entities” is aligned with the same concept used in the IESBA International Code of Ethics for Professional Accountants (including International Independence Standards) and will ensure greater global consistency in the application of the differential requirements in the ISQMs and ISAs.
In addition, the IAASB agreed with the PIE Task Force recommendation to finalize the proposed revisions to International Standard on Review Engagements 2400 (Revised), Engagements to Review Historical Financial Statements, as proposed in the exposure draft.
The next discussion will be in December 2024, when the IAASB will consider the addition feedback received on the public consultation and deliberate on revisions in response to the feedback. In addition, the IAASB will review the first full draft of the revised narrow scope amendments to the ISQMs, ISAs, and ISRE 2400.
For further information, read the proposed revisions and the Listed Entities & PIE Track 2 project page.
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Sustainability Assurance
Updated September 2024
The IAASB unanimously approved International Standard on Sustainability Assurance 5000, General Requirements for Sustainability Assurance Engagements, on September 20, 2024. With this milestone, the project team will now proceed to prepare the necessary due process documentation for certification by the Public Interest Oversight Board. The final standard will be formally published after PIOB certification.
The approved text of the standard is available in the September 2024 meeting papers (see Agenda Items 2-B.1 and 2-B.2, “APPROVED”). In January 2025, the IAASB will publish a range of implementation support materials and related guidance.
To learn more about the journey to this approved standard, visit the ISSA 5000 web page and the Assurance on Sustainability Reporting project page.
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Technology – Disruptive Technologies
Updated September 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. This new position marks a significant step forward in the IAASB’s ongoing commitment to enhancing the quality and relevance of its standards in the face of rapid technological advancement.
The Position comprises the following 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. The Statement further elaborates on what the IAASB will do to deliver on its commitment.
- 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. In September 2024, the IAASB deliberated on a preliminary gap analysis of five in-scope standards: ISQM 1, ISA 200, ISA 220 (Revised), ISA 330, and ISA 500. The gap analysis was the first activity undertaken under component 2.
At its December 2024 meeting, the IAASB will deliberate on an updated gap analysis, which will be expanded to include ISA 315 (Revised 2019) and ISA 520.
- Component 3: Monitoring and Adapting the IAASB’s Technology Position
The IAASB will continuously monitor emerging technologies to ensure its standards evolve with 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.