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Audit Evidence and Risk Response
Updated March 2025
In March 2025, the IAASB discussed this project for the first time since the project proposal was approved in December 2024. The project calls for concurrent revisions of ISA 500, Audit Evidence, ISA 330, The Auditor’s Responses to Assessed Risks, and ISA 520, Analytical Procedures.
The next IAASB discussion is scheduled for June 2025, during which the IAASB will continue its deliberations on selected proposed actions in the project proposal to address key technology-related issues and the auditor’s work on internal controls.
In the meantime, significant outreach activities are being planned as part of the project, including focused discussions with investors and users of financial statements, working sessions with regulators and individual audit firms, and engagement with the Forum of Firms and jurisdictional auditing standard setters. These efforts will support the IAASB in gathering input on key public interest issues under consideration throughout the project.
For further information, visit the Audit Evidence and Risk Response project page.
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Experts Narrow-Scope Amendments
Updated March 2025
This narrow-scope standards’ maintenance project is considering targeted amendments to IAASB standards due to revisions to the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) related to using the work of an external expert.
At its March 2025 meeting, the IAASB approved:
- A project proposal to maintain the interoperability of the IAASB standards with new provisions in the IESBA Code.
- Narrow scope amendments to the following IAASB standards:
- ISA 620, Using the Work of an Auditor’s Expert
- ISRE 2400 (Revised), Engagements to Review Historical Financial Statements
- ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information
- ISRS 4400 (Revised), Agreed-upon Procedures Engagements
The IAASB plans to issue an exposure draft of these narrow-scope amendments in April 2025 with a 90-day comment period.
For further information, visit the Experts Narrow-Scope Amendments project page.
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Fraud
Updated March 2025
The IAASB approved International Standard on Auditing 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements on March 21, 2025. The standard will be published following certification by the Public Interest Oversight Board, which is anticipated in early July 2025. After certification and publication, the standard will be effective for audits of financial statements for periods beginning on or after December 15, 2026.
The revised fraud standard promotes consistent practice and drives change in auditor behavior when addressing fraud. The key revisions:
- Reinforce the exercise of professional skepticism throughout the audit
- Clarify and add emphasis on the auditor’s responsibilities
- Enhance communications throughout the audit with management and those charged with governance
- Apply a fraud lens to risk identification and assessment
- Enable robust work effort requirements if fraud or suspected fraud is identified
- Enhance transparency by communicating key audit matters related to fraud in the auditor’s report
- Enhance audit documentation requirements
To learn more about the journey to this approved standard, visit the Fraud project page.
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Going Concern
Updated April 2025
Following its approval at the December 2024 IAASB meeting, International Standard on Auditing 570 (Revised 2024), Going Concern, has been published .
The revised standard responds to corporate failures that raised questions regarding the auditor’s responsibilities by significantly enhancing the auditor’s work in evaluating management’s assessment of an entity’s ability to continue as a going concern. Effective for 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:
- Enable the 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 support effective implementation, the IAASB has published a fact sheet and Basis for Conclusion alongside the revised standard. Additional materials will follow in the coming months.
To learn more about the journey to this approved standard, visit the Going Concern project page.
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ISSA 5000 Implementation for Sustainability Assurance
Updated March 2025
Following the publication of International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, along with a package of materials to help stakeholders understand and implement the standard, the IAASB is now focusing on supporting adoption and implementation. This includes ongoing outreach and developing materials that encourage effective, consistent adoption for both mandatory and voluntary assurance engagements on general purpose sustainability information reported.
To support effective implementation of ISSA 5000, the IAASB invites stakeholders to submit implementation questions or matters for the IAASB’s consideration. Visit the ISSA 5000 web page for full details and a link to the submission form.
The IAASB will continue support implementation across jurisdictions globally.
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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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Modernizing ISRE 2410
Updated March 2025
At its March 2025 meeting, the IAASB held its first discussion on its project to revise International Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. In particular, the IAASB discussed:
- The core issues identified with the use of ISRE 2410 in practice, and
- An initial draft of a project proposal to revise ISRE 2410 to address these issues, including the objectives of the project to serve the public interest, the stakeholder needs that would be served by the project, and initial proposals of actions to specifically address the issues identified.
At its June 2025 meeting, the IAASB will review and discuss a project proposal for approval.
For further information, visit the ISRE 2410 project page.
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Technology Position
Updated March 2025
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.
At its March 2025 meeting, the IAASB discussed a technology gap analysis, which was presented as a Catalog of Issues and Possible Actions. The Catalog will be published after offline clearance by the Board following final updates based on the March 2025 discussion. Designed to be an evergreen document, the Catalog will continue to evolve, incorporating insights from the IAASB’s efforts to monitor emerging technologies and stakeholder feedback.
Learn more about the new Technology Position in its dedicated web page, which includes the Position and features a short video explaining the new forward-thinking approach.