Proposed Revisions for Audit Evidence & Risk Response: ISA 330, ISA 500 & ISA 520
These proposed revisions to ISA 330, The Auditor's Responses to Assessed Risks; ISA 500, Audit Evidence; and ISA 520, Analytical Procedures, further embed, clarify and strengthen a principles-based, risk-based audit framework. The revisions also address the increased use of technology in business, financial reporting, and auditing.
The proposed revisions establish a comprehensive basis for auditors’ judgments about audit evidence. They include:
- a revised definition of audit evidence to reflect today’s digital environment;
- greater emphasis on the intended purposes of audit procedures;
- strengthened requirements for evaluating the relevance and reliability of information used as audit evidence;
- clarification of key concepts; and
- reinforced application of professional skepticism throughout the audit.
The proposals also strengthen auditors' responses to assessed risks by clarifying the role of tests of controls, substantive procedures, and analytical procedures—promoting more consistent and effective audit responses. The proposals reflect the IAASB’s conclusion that a principles-based rather than technology-specific approach is the best way to maintain robust and relevant standards in the face of rapid technological evolution. They enable innovation while preserving the core principles of high-quality auditing. In addition, the proposals include guidance to help auditors exercise professional judgment about appropriate use of technology.
The IAASB encourages auditors, regulators, investors and other users of financial statements, preparers, those charged with governance, academics, and other stakeholders to provide feedback on the proposals. Responses are requested by December 15, 2026.
The IAASB will offer additional opportunities to engage—including a user survey and webinar series—during the consultation period. Subscribe or follow the IAASB on social media to remain up-to-date:
