• Register
Return to: Home > News > IAASB proposes audit risk assessment standards revision

IAASB proposes audit risk assessment standards revision

The International Auditing and Assurance Standards Board (IAASB) has moved to update its standard on audit risk assessments, to take into account developments arising from IT.

In an exposure draft for the proposed International Standard of Auditing 315 (revised) (ISA-315), the IAASB said that as IT has become the medium through which a significant amount of audit evidence is obtained, it has become increasingly important for auditors to understand an entity’s IT system, including how the integrity of the information is maintained.

As a result, the IAASB has suggested a number of changes to the auditor’s consideration of IT when obtaining an understanding of the entity’s system of internal control. These include:

  • Examples of matters to be understood in relation to the IT environment, including the IT applications, IT infrastructure and IT processes;
  • Examples of matters within the IT environment that would likely be relevant to determining the IT applications and other aspects of the IT environment that are relevant to the audit; and,
  • Contrasting examples of the auditor’s considerations in situations in which the entity’s IT system consists of commercial software and the entity does not have access to the source code, and situations in which the entity has highly customised or highly integrated IT applications.

According to the IAASB, the most significant proposed enhancements to ISA-315 addressing the entity’s use of IT are in the requirements for the information system and communication component, and the identification of controls relevant to the audit.

This is just one are of change suggested in the proposal. It also deals with topics such as identifying and assessing the risks of material misstatement,

Any comments on the draft need to be made by 2 November 2018.

Top Content

    Accountancy Europe: the winner takes it all

    Jonathan Minter spoke to Olivier Boutellis-Taft, chief executive officer at Accountancy Europe, about how technology could change the industry, and how training needs to keep up to enable the profession to develop

    read more

    Embracing global technology trends

    Accountancy Europe’s Digital Day 2018 found the European accounting profession looking to tackle the challenges presented by new technologies head on. Jonathan Minter reports from the day

    read more

    IMA Conference: automation of the audit

    At the annual conference of the Institute of Management Accountants (IMA) in Indianapolis, Deloitte partner Alex Smith gave a presentation on digital transformation in the profession. Joe Pickard spoke to Smith following the presentation to find out more about his views on the future of audit

    read more

    IMA Conference: technology and the human effect

    The annual conference of the Institute of Management Accountants (IMA) took place in Indianapolis this year. Members of the profession gathered to hear the latest from the institute and other market players, covering some of the challenges and opportunities the profession faces.

    read more

    The Caribbean: a digital paradise

    The ICAC hosted its 36th annual conference in June this year – very much looking to the future following a tough 2017 for the Caribbean. Jonathan Minter spoke with chief executive officer Misha Lobban Clarke

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.