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At-A-Glance
The International Audit and Assurance Standards Board (IAASB) continues to update auditing pronouncements. The IAASB recently published proposals for revisions to three International Standards on Auditing (ISAs): ISA 330 (Revised), The Auditor's Responses to Assessed Risks; ISA 500 (Revised), Audit Evidence; and ISA 520 (Revised), Analytical Procedures. This issue of the A & A Alert provides highlights. Also, our Worldwide Update covers news from organizations across the globe.
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Three New Auditing Standards
International Audit and Assurance Standards Board proposes updates
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Last month’s issue of the A & A Alert covered the new standard for Interim Financial Review Engagements published by the International Audit and Assurance Standards Board (IAASB). This issue takes a look at the IAASB’s proposed revisions to three International Standards on Auditing (ISAs): Proposed ISA 330 (Revised), The Auditor's Responses to Assessed Risks; Proposed ISA 500 (Revised), Audit Evidence; and Proposed ISA 520 (Revised), Analytical Procedures. In August, the IAASB published the Exposure Draft (ED) for the Audit Evidence and Risk Response Project Overall, as well as exposure drafts for the three individual ISAs.
In the Overall ED, the IAASB states that the three standards will “improve the quality of audit engagements through addressing key public interest issues related to foundational aspects of obtaining and evaluating audit evidence by designing and performing audit procedures to obtain sufficient appropriate audit evidence.” The Overall ED, itself, will cover “the interrelationship of the three proposed standards, the collective outcomes of the proposed revisions aimed at promoting consistent practice and changing auditor behavior in accordance with the project objectives, enhancing professional skepticism, and the related conforming and consequential amendments to the ISQMs [(International Standards on Quality Management] and other ISAs arising from the proposed revisions.”
Proposed ISA 330 (Revised), The Auditor's Responses to Assessed Risks, replaces ISA 315, which was issued effective for audits of periods beginning on or after December 15, 2021, dealing with the auditor’s responsibility to identify and assess the risks of material misstatement in the financial statements.
Proposed ISA 330 (Revised) is a “comprehensive revision of the standard to support a robust identification and assessment of the risks of material misstatement (ROMMs) at the financial statement and assertion level.”
Proposed ISA 500 (Revised), Audit Evidence “is an overarching standard that deals with the auditor’s responsibilities relating to audit evidence when designing and performing audit procedures. It also emphasizes that such responsibilities include evaluating the relevance and reliability of information intended to be used as audit evidence.”
Proposed ISA 520 (Revised), Analytical Procedures provides “clarity… regarding the auditor’s use of analytical procedures across all stages of an audit, including for risk assessment procedures, substantive procedures and analytical procedures that assist when forming an overall conclusion. Doing so would allow ED–520 to embed a complete framework to support auditors’ judgments when using analytical procedures and addressing, as necessary, the results of such procedures. It would also help clarify and contrast the distinct purposes of analytical procedures when they are used for identifying and assessing risks of material misstatement (ROMMs) or when assisting in forming an overall conclusion versus when they are used to detect material misstatements at the assertion level.”
Among other issues that the IAASB discussed at a recent Board meeting was artificial intelligence. The Board is in the information gathering and monitoring phase for consideration of this topic. A Proposed Roadmap for Non-Authoritative Material on Gen AI-Enabled Technological Tools Used in Engagements was provided for further deliberation at the next Board meeting.
Further details can be found at IAASB Proposes Revisions to Core Standards.
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Worldwide Update
Periodic roundup of recent and upcoming actions and activities by auditing and accounting organizations throughout the world.
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International
IASB – International Accounting Standards Board (www.ifrs.org)
- IFRS Accounting Taxonomy 2025—Proposed Update 2 IFRS 20 Regulatory Assets and Regulatory Liabilities, Translation to a Hyperinflationary Presentation Currency and Amendments to IFRS 19, published July 15, 2026, “sets out proposed changes to the IFRS Accounting Taxonomy to support digital financial reporting of information prepared in accordance with new and amended IFRS Accounting Standards.” The comment period ends on September 14, 2026.
IFAC – International Federation of Accountants (www.ifac.org)
- International Auditing and Assurance Standards Board (IAASB), Exposure Drafts - Proposed International Standard on Auditing (ISA) 330 (Revised), The Auditor's Responses to Assessed Risks (ED–330), Proposed ISA 500 (Revised), Audit Evidence (ED–500 (2026)) and Proposed ISA 520 (Revised), Analytical Procedures (ED–520), published August 5, 2026. See article in this issue.
IFR4NPO - International Financial Reporting for Non-Profit Organisations (www.ifr4npo.org)
IOSCO – International Organization of Securities Commissions (www.iosco.org)
ACCA – Association of Chartered Certified Accountants (www.accaglobal.com)
- Enabling finance insight: Bridging skills and data gaps for AI-enabled finance, policy and insights report published July 14, 2026, jointly by ACCA and Chartered Accountants Australia and New Zealand (CA ANZ), “explores how finance leaders must seize this moment to shape their organisation's evolution...equips CFOs and finance leaders with actionable recommendations to architect a future where finance: Provides trusted insight; Stewards data; Governs AI responsibly; Drives measurable value for the organisation.”
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Africa, Europe, India and the Middle East (AEIME)
FRC – Financial Reporting Council of the UK (www.frc.org.uk)
- Applying materiality in corporate reporting, – published July 29, 2026. “sets out the FRC’s insights on materiality in corporate reporting. This is intended to help preparers, investors and other primary users of UK annual reports understand how materiality applies to corporate reporting.
- The use of Artificial Intelligence Technologies in Corporate Reporting, survey research published July 8, 2026, “found that generative AI is emerging as a valuable technology, particularly in narrative reporting, while use in financial statements remains limited.”
ICAEW - Institute of Chartered Accountants in England and Wales (https://www.icaew.com/)
EC – European Commission (https://ec.europa.eu/)
EFRAG – European Financial Reporting Advisory Group (www.efrag.org)
- State of Play report, Implementation of European Sustainability Reporting Standards, FY2025 Observed Practices, July 2026 - “This report gives concrete expression to the long-standing ambition of European sustainability reporting policy: to make corporate disclosures transparent, comparable and decision-useful.” The four themes in the report are: 1) Cross-cutting practices: continuity with refinement, not transformation; 2) Environmental disclosures; 3) Social disclosures; and 4) Governance baseline.
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Americas, Asia, Australia and New Zealand (AAANZ)
AICPA & CIMA – American Institute of Certified Public Accountants (www.aicpa.org)
FASB – Financial Accounting Standards Board (www.fasb.org)
GASB – Governmental Accounting Standards Board (www.gasb.org)
COSO - The Committee of Sponsoring Organizations of the Treadway Commission (www.coso.org)
PCAOB – Public Company Accounting Oversight Board (www.pcaob.org)
SASB – Sustainability Accounting Standards Board (www.sasb.org)
SEC – Securities and Exchange Commission (www.sec.gov)
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Audit & Accounting Alert is a publication of Integra International intended to highlight emerging issues in the profession. The goal is to give Integra members an awareness of developments impacting the practice of Audit & Accounting enabling them to stay on the forefront of industry trends.This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
Editor Gerald E. Herter
www.Integra-International.net
© 2026 Integra International. All Rights Reserved.
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