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IAASB seeks comments on revised audit evidence standard

24 October 2022

Proposed changes to the standard are designed to provide a reference framework for auditors when making judgements about audit evidence throughout the audit.

The International Auditing and Assurance Standards Board (IAASB) on Monday opened the public consultation for proposed changes to one of its fundamental standards, International Standard on Auditing (ISA) 500, Audit Evidence.

The proposed revisions to the standard would provide a "reference framework" for auditors when making judgements about audit evidence throughout the audit, according to the IAASB.

"The audit and the environment in which an auditor conducts the audit and [assesses] audit evidence has evolved significantly in recent years," IAASB Chair Tom Seidenstein said in a news release. "For example, the changing nature and sources of information used by the auditor and the increasing role played by technology demanded a re-examination of the audit standard. These proposed changes will ensure that the standard keeps pace, while retaining a principles-based approach to standard-setting."

The IAASB said the proposed changes are designed to:

Clarify ISA 500's purpose and scope and explain its relationship with other standards;

  1. Provide a principles-based approach to considering and making judgements about information intended to be used as audit evidence and evaluating whether sufficient appropriate audit evidence has been obtained;
      
  2. Modernise ISA 500 to be adaptable to the current business and audit environment, while considering scalability for different circumstances, including the entity and the auditor's use of technology, such as automated tools and techniques; and
     
  3. Emphasise the role of professional scepticism when making judgements about information intended to be used as audit evidence and evaluating the audit evidence obtained.

The current standard addresses an auditor's responsibility to design and perform audit procedures to obtain sufficient appropriate evidence to draw reasonable conclusions on which to base the auditor's opinion.

The deadline for comments is April 24, 2023. Comments can be made on the IAASB website.

[FM Magazine]