The IAASB has proposed a significant strengthening of its standard on auditors’ responsibilities relating to fraud. Auditors have increasingly been scrutinized after recent corporate failures around the world. This has underscored the benefits of clarifying and enhancing the role of auditors in responding to fraud and suspected fraud in an audit of financial statements as a means of enhancing public trust in financial reporting.
The proposed revisions define the expectations in relation to fraud, delineate more robust procedures, and increase transparency about auditors’ responsibilities and fraud-related procedures in the auditor’s report.
To help stakeholders understand the proposed changes and the rationale behind them, a new four-part video series has been issued.
The IAASB invites stakeholders to submit comments to the exposure draft, ED-240, and to share their insights by the closing date of June 5, 2024.
Implementation Resources for the ISA for LCE: Video Series and Webinar
As part of adoption and implementation efforts, the IAASB has issued a variety of materials to help stakeholders understand, implement, and use the new standard for audits of financial statements of less complex entities (the ISA for LCE).
The IAASB also hosted a webinar on April 3, 2024, which is available on the IAASB’s YouTube channel.
IAASB’s First Deliberation on Sustainability Assurance Public Comments
At the March 2024 IAASB meeting, the Sustainability Assurance Task Force brought an analysis of the fifteen of the questions in the Explanatory Memorandum of proposed ISSA 5000 to the IAASB for discussion. The analysis covered comment letters, survey responses and feedback from the IAASB’s extensive global outreach.
Based on the analysis, the Task Force identified the main themes that emerged from the feedback and developed recommendations in response. Interested stakeholders may access the recordings of the IAASB’s deliberations at the March 2024 meeting on Monday and Tuesday on the IAASB YouTube channel. The papers can also be found on the IAASB meetings page for March 2024 (Agenda Item 3).
The remainder of the questions in the Explanatory Memorandum along with a full draft standard will be discussed at the June 2024 IAASB meeting in Madrid, Spain (livestreamed on YouTube).
Welcome to Our New Staff Members
We are excited to welcome two new members to the IAASB staff team who joined us in January 2024.
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the Stakeholder Advisory Committee, which provides public interest input into the development of the standards and guidance.
