The International Auditing and Assurance Standards Board (IAASB) is consulting on revisions to ISA 315, Identifying and Assessing the Risks of Material Misstatement, which are designed to ensure the standard reflects developments in technology and changes in business practice
The proposed changes will introduce more robust requirements and improved guidance, with aim of driving consistent and effective identification and assessment of risks of material misstatement.
IAASB says it wants to modernise ISA 315 to meet evolving business needs, including information technology, and how auditors use automated tools and techniques, including data analytics, to perform audit procedures. It is also seeking to improve the standard’s applicability to entities across a wide spectrum of circumstances and complexities. The regulator wants auditors to focus on exercising professional scepticism throughout the risk identification and assessment process.
The deadline for comment is 2 November.
Report by Pat Sweet