The International Auditing and Assurance Standards Board (IAASB) has issued limited amendments to a number of its standards as a consequence of the International Ethics Standards Board for Accountants’ (IESBA) work on Using the Work of an External Expert.
The changes follow updates made by the IESBA to the International Code of Ethics for Professional Accountants (including International Independence Standards).
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Those revisions introduced specific ethical requirements for relying on external experts’ work in audit, assurance and non-assurance engagements, among other changes.
The IAASB stated that the amendments are intended to align its standards with the revised IESBA Code and to support consistency between the two sets of requirements.
The amendments relate to several IAASB standards, including ISA 620, Using the Work of an Auditor’s Expert; ISRE 2400 (Revised), Engagements to Review Historical Financial Statements; and ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.
They also affect ISRS 4400 (Revised), Agreed-upon Procedures Engagements.
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By GlobalDataIn July last year, the IAASB revised ISA 240, addressing the auditor’s responsibilities in relation to fraud in audits of financial statements.
The IAASB described the revised fraud standard as a response to stakeholder attention on the auditor’s role in fraud matters and as an effort to support confidence in audit work.
It also noted that the revised standard sets out auditor responsibilities more clearly, requires a fraud-focused approach to risk identification and assessment, and specifies responses to assessed risks.
In addition, it includes reporting transparency measures for publicly traded entities and reinforces the application of professional scepticism.
