New auditing standards

The auditing profession is constantly evolving, and new auditing standards are being issued to reflect changes in the business environment, technological advancements, and emerging risks. Here are some recent and upcoming auditing standards:

Recent Standards:

  1. ISA 540 (2019): Auditing Accounting Estimates, Including Fair Value Measurements - This standard provides guidance on auditing accounting estimates, including fair value measurements, and the related disclosures.
  2. ISA 315 (2019): Understanding the Entity and Its Environment - This standard provides guidance on understanding the entity and its environment, including the entity's internal control, risk assessment, and the auditor's consideration of materiality.
  3. ISA 450 (2019): Evaluation of Misstatements Identified During the Audit - This standard provides guidance on evaluating misstatements identified during the audit, including the consideration of materiality and the auditor's reporting responsibilities.
  4. ISA 701 (2019): Communicating Key Audit Matters in the Independent Auditor's Report - This standard requires auditors to communicate key audit matters (KAMs) in the independent auditor's report, which are matters that, in the auditor's professional judgment, were of most significance to the audit.

Upcoming Standards:

  1. ISA 220 (2020): Quality Management for an Audit of Financial Statements - This standard will provide guidance on the quality management of an audit of financial statements, including the auditor's responsibilities for maintaining professional skepticism and objectivity.
  2. ISA 315 (2020): Understanding the Entity and Its Environment - This standard will provide guidance on understanding the entity and its environment, including the entity's internal control, risk assessment, and the auditor's consideration of materiality.
  3. ISA 540 (2020): Auditing Accounting Estimates, Including Fair Value Measurements - This standard will provide guidance on auditing accounting estimates, including fair value measurements, and the related disclosures.
  4. ISA 701 (2020): Communicating Key Audit Matters in the Independent Auditor's Report - This standard will require auditors to communicate key audit matters (KAMs) in the independent auditor's report, which are matters that, in the auditor's professional judgment, were of most significance to the audit.

International Auditing and Assurance Standards Board (IAASB) Projects:

  1. Auditing and Assurance Standards for Small and Medium-Sized Entities (SMEs) - The IAASB is developing auditing and assurance standards specifically for SMEs, which are expected to be issued in 2023.
  2. Auditing and Assurance Standards for Emerging Markets - The IAASB is developing auditing and assurance standards for emerging markets, which are expected to be issued in 2024.
  3. Auditing and Assurance Standards for Sustainability Reporting - The IAASB is developing auditing and assurance standards for sustainability reporting, which are expected to be issued in 2025.

These are just a few examples of the new auditing standards and projects being developed by the IAASB. The auditing profession is constantly evolving, and it's essential for auditors to stay up-to-date with the latest standards and guidance to ensure high-quality audits and effective risk management.