Exposure Draft, ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement
To ensure that International Standards on Auditing continue to form the basis for high-quality, valuable and relevant global audits, the IAASB Exposure Draft, ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement, proposes more robust requirements and improved guidance to:
- Drive consistent and effective identification and assessment of risks of material misstatement;
- Modernize ISA 315 to meet evolving business needs, including information technology, and how auditors use automated tools and techniques, including data analytics, to perform audit procedures;
- Improve the standard’s applicability to entities across a wide spectrum of circumstances and complexities; and
- Focus auditors on exercising professional skepticism throughout the risk identification and assessment process.
Comments are requested by November 2, 2018.