The International Auditing and Assurance Standards Board (IAASB) recently announced limited amendments to several of its standards in response to updates made by the International Ethics Standards Board for Accountants (IESBA) regarding the use of external experts. These changes were implemented following revisions to the International Code of Ethics for Professional Accountants, which introduced specific ethical requirements for relying on external experts in various engagements, including audit, assurance, and non-assurance services.
The IAASB emphasized that these amendments are designed to align its standards with the updated IESBA Code and to promote consistency between the two sets of requirements. The affected IAASB standards include ISA 620, which addresses the use of an auditor’s expert; ISRE 2400 (Revised), which pertains to engagements to review historical financial statements; and ISAE 3000 (Revised), which covers assurance engagements other than audits or reviews of historical financial information. Additionally, the amendments impact ISRS 4400 (Revised), which focuses on agreed-upon procedures engagements.
Last year, the IAASB also revised ISA 240, which addresses auditors’ responsibilities related to fraud in financial statement audits. This update was a response to heightened stakeholder attention on the auditor’s role in fraud matters and aimed to enhance confidence in audit work. The revised standard outlines auditor responsibilities more clearly, emphasizes a fraud-focused approach to risk identification and assessment, and specifies appropriate responses to identified risks. It also includes reporting transparency measures for publicly traded entities and reinforces the application of professional skepticism.
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