The International Auditing and Assurance Standards Board (IAASB) has announced amendments to its standards, revising the definition of a publicly traded entity to align with the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics.
This alignment will affect the International Standards on Quality Management (ISQMs) and International Standards on Auditing (ISAs).
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The amendments include adopting the same definition of a publicly traded entity in the ISQMs and ISAs as in the IESBA Code of Ethics.
According to the IAASB, the role of local standard setters and regulators in defining publicly traded entities within their jurisdictions should be acknowledged.
The amendments also incorporate a framework for when it may be appropriate to apply differential requirements to other entities.
Moreover, the amendments will adjust the applicability of existing requirements for audits of listed entities to audits of publicly traded entities.
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The IAASB said it has coordinated closely with IESBA throughout the development of these amendments, aiming to align key concepts in their standards.
The narrow scope amendments will be effective for engagements starting on or after 15 December 2026, aligning with the effective dates for the IAASB’s revised standards on going concern and fraud, ISA 570 (Revised 2024) and ISA 240 (Revised).
In July, the IESBA and IAASB established two expert implementation groups to support the application of their global sustainability standards.
These groups aim to play a crucial role in implementing the IESBA’s sustainability-related ethics and independence standards, including the International Ethics Standards for Sustainability Assurance, released in January 2025.
These standards intend to establish consistent global expectations for ethical conduct and independence in sustainability reporting and assurance, including provisions on sustainability reporting and the use of external experts.
