The International Auditing and Assurance Standards Board
The revisions are part of the IAASB's efforts to modernize the International Standards on Auditing to improve the risk-based audit framework and address technological advances in auditing, assurance and financial reporting. The effort comes on the heels of other recent revisions, including ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement.
"Over the past decade, the IAASB has modernized the International Standards on Auditing to strengthen audit quality and respond to an evolving environment," said IAASB chair Tom Seidenstein in a statement. "These proposals are an important milestone in that work. With the benefit of stakeholder input and when finalized, the revised standards will further enhance a principles-based, risk-based audit framework that provides a stable foundation for high-quality audits while remaining flexible enough to support innovation as technology continues to evolve."
The proposed revisions establish a comprehensive basis for auditors' judgments about audit evidence. They include a revised definition of audit evidence to reflect the current digital environment; more emphasis on the intended purposes of audit procedures; strengthened requirements for evaluating the relevance and reliability of information used as audit evidence; clarification of key concepts; and reinforced application of professional skepticism throughout the audit.
The proposals also aim to bolster auditors' responses to assessed risks by clarifying the role of tests of controls, substantive procedures and analytical procedures, encouraging more consistent and effective audit responses. They reflect the IAASB's contention that a principles-based rather than technology-specific approach is the best way to preserve robust, relevant standards amid rapid technological advance, enabling innovation while keeping the core principles of high-quality auditing. The proposals also include guidance to help auditors exercise professional judgment about the appropriate use of technology.
The proposed revisions also enhance the alignment of concepts and principles across the auditor's risk assessment, responses to assessed risks and evaluation of whether sufficient appropriate audit evidence has been obtained.
The IAASB is asking for feedback from auditors, regulators, investors and other users of financial statements, preparers, those charged with governance, academics, and other stakeholders to provide feedback on the proposals by Dec. 15, 2026. The exposure drafts and response form can be found
