The International Auditing and Assurance Standards Board (IAASB) has released a new non-authoritative publication—How the IAASB’s Revised Going Concern and Fraud Standards Reinforce Professional Skepticism—to assist stakeholders in understanding how the revisions to ISA 570 (Revised 2024) and ISA 240 (Revised) strengthen the consistent application of professional skepticism throughout the audit.

This publication, developed with input from the IAASB’s Professional Skepticism Consultation Group, highlights key enhancements to both standards reflecting the IAASB’s efforts to reinforce professional skepticism by addressing, among other matters, how auditors are expected to maintain a questioning mindset, consider contradictory evidence, and appropriately challenge management assumptions.

The revised standards are effective for audits of financial statements for periods beginning on or after December 15, 2026.

This non-authoritative publication is intended to assist in the adoption and implementation of the recently issued ISA 570 (Revised 2024) on going concern and ISA 240 (Revised) on fraud by highlighting the IAASB’s efforts to reinforce professional skepticism within the revisions of both standards.

In this eNews you will find:

•    Updates from our June meeting
•    Our plans for Q3 2025
•    Our plans to support the adoption and implementation of our standards
•    Feedback submission form for our Technology Catalog
•    Information about IFEA's Staff Fellows Program
•    Key dates for this quarter

Updates from Our June Meeting

During our June 2025 meeting, we approved:

• Narrow scope amendments to the ISQMs, ISAs and ISRE 2400 (Revised), Engagements to Review Historical Financial Statements, from our listed entity and public interest entity Track 2 project. The narrow scope amendments will be effective for periods beginning on or after December 15, 2026.
• A project proposal to revise ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity.

We also discussed the following projects, where technology is a significant strategic driver:

• Audit Evidence and Risk Response (Project Stage: Exposure Draft Development) – We discussed selected topics related to the revision of ISA 330, The Auditor’s Responses to Assessed Risks; ISA 500, Audit Evidence; and ISA 520, Analytical Procedures. The topics discussed included defining tests of details, analytical procedures (including substantive analytical procedures), using audit evidence obtained in previous audits, accepting records and documents as genuine, and alignment with concepts of ISA 315 (Revised 2019).
• Technology Quality Management – We discussed our newly launched workstream, which will explore whether additional support is needed on how our quality management standards apply to emerging technologies. Among other matters, we discussed strategic questions designed to help shape the focus and priorities of the workstream’s information gathering activities.
• ISA 500 series (Project Stage: Information Gathering) – We discussed initial issues identified for targeted standards in the ISA 500 series.

Recordings of the meetings are available on our YouTube channel and more information on our projects can be found on the Latest on Our Projects web page.

Looking Ahead: Our Plans for Q3 2025

In addition to continuing our work on the projects highlighted above, we will also work on:

• IAASB Handbook – We expect to release an updated version of our handbook in Q3.
• Strategy and Work Plan – Together with IESBA, we will begin discussing our Strategy and Work Plan for 2028–2031. The Strategy and Work Plan for 2024–2027 is available on our website.
• ISA for LCE – We will begin the maintenance of the ISA for LCE. The standard will be updated, in a proportionate manner, to remain aligned with our projects on Fraud and Going Concern.

Supporting Adoption and Implementation

We continue to support the adoption and implementation of our standards. Therefore, we plan to publish in Q3:

• ISA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements: A videos series that includes an overview video and topical videos on the changes related to risk identification and assessment, fraud or suspected fraud, and transparency in the auditor’s report. This is in addition to the Basis of Conclusions and fact sheet that were issued alongside the revised standard on July 8.
• ISA 570 (Revised 2024), Going Concern: A video with an overview of the revised standard and its key changes.
• ISSA 5000 on sustainability assurance: Illustrative assurance reports, other supplementary guidance, and a webinar series. We will also continue our outreach efforts and gather implementation questions and matters.

More information on the resources published can be found on the SUPPORT & RESOURCES section of our website. Past webinars can be found on the PAST EVENTS web page.

Technology: Submission Form for Feedback on the Catalog

As part of our Technology Position, we conducted a gap analysis to ensure our standards align with technological advancements, resulting in the Catalog of Issues and Possible Actions. The Catalog is a “living” document that will be updated at least semi-annually. We have also developed a feedback process, allowing our stakeholders to share your feedback and insights on the Catalog.

Submission Process

Feedback will be collected electronically and kept private. While submissions will not be attributed to individuals, they may be referenced in IAASB public materials. Please avoid including confidential information.

Consideration of Feedback

All feedback will be reviewed. While we will not respond to individual submissions, input will be considered collectively in setting priorities and determining the urgency and type of responses.

Share your feedback on the Catalog here.

IFEA Staff Fellows Program

The IFEA Staff Fellows Program is a unique secondment program that invites experienced professionals from around the world to temporarily join the IAASB or IESBA staff—contributing directly to international audit, assurance, and ethics standard setting. 

As a Staff Fellow, you'll: 

• Collaborate on global research, drafting, and stakeholder engagement 
• Deepen your understanding of international standards and the standard-setting process 
• Expand your global network 
• Advance your professional development 

For sponsoring organizations, the benefits are just as impactful: 

• Enhance staff expertise and leadership 
• Build stronger ties with the IAASB and IESBA 
• Support the implementation of high-quality global standards 

Applications are accepted year-round, but interviews typically take place in June–July for placements beginning in September. 

Interested? 

• Connect with your employer to discuss the opportunity and share this program flyer.
• Learn more about the Staff Fellows Program and meet current and alumni Fellows here.

Key Dates for this Quarter

Meetings 

• IAASB: September 15–18, 2025, New York, USA

• The IESBA and IAASB have established technical expert groups to support effective global implementation of the two boards’ sustainability standards.
• Group members bring deep expertise and hands-on experience with the application of the IESSA and ISSA 5000 standards.
• The groups will provide timely, practice-informed feedback and help develop implementation resources that the IESBA and IAASB might commission to support consistent global application.

The International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) today announced the recent formation of two expert implementation groups that will play important roles in supporting the effective implementation and application of the Boards’ recently released global sustainability standards:

• The IESBA’s IESSA Implementation Monitoring Advisory Group (IIMAG) will support the implementation of the International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and revisions to the IESBA code for sustainability reporting.
• The IAASB’s ISSA 5000 Technical Implementation Contact Group (TICG) will support implementation of the International Standard on Sustainability Assurance (ISSA 5000).

Each group comprises a diverse and globally representative set of professionals with a high level of familiarity with the standards and direct involvement in implementation-related activities. The IIMAG and TICG will provide regular feedback to the Boards to ensure that emerging issues relating to the implementation of the standards are identified and addressed timely, and that implementation support resources remain relevant and practical.

The work of these groups will support and contribute to IESBA and IAASB efforts to support stakeholders’ adoption and implementation of IESSA and ISSA 5000, thereby helping build trust in sustainability information and advancing high-quality assurance practices worldwide.

For more information, visit:

• IESBA’s IESSA Implementation Resources
• IAASB’s ISSA 5000 Technical Implementation Contact Group details
• IAASB’s ISSA 5000 Implementation Resources

About IAASB and IESBA
The International Auditing and Assurance Standards Board^© and the International Ethics Standards Board for Accountants^© are part of the International Foundation for Ethics and Audit (IFEA) ^©, a nonprofit organization that supports high-quality, international ethics, audit, and assurance standards in the public interest. The IAASB and IESBA develop and issue their standards independently and in accordance with an approved due process and the Public Interest Framework, overseen by the Public Interest Oversight Board.

The IAASB develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements.

The International Auditing and Assurance Standards Board (IAASB) has revised International Standard on Auditing (ISA) 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. The updated standard responds to global scrutiny and stakeholder concern regarding the auditor’s role in detecting fraud. The revised standard clarifies the auditor’s responsibilities, emphasizes a fraud lens in the auditor’s risk identification and assessment and the appropriate responses to assessed risks, and provides greater transparency in the auditor’s reports of publicly traded entities.

In developing the revised standard, the IAASB undertook an extensive global consultation with regulators, users of financial statements, standard setters, and auditors across firm sizes and geographies. The revised standard’s structure incorporates scalability and proportionality to support consistent and effective application across a range of audit engagements.

“These revisions directly address core public interest concerns regarding fraud,” said IAASB Chair Tom Seidenstein. “By clarifying responsibilities, strengthening how auditors assess and respond to fraud risks, and enhancing transparency in reporting, the revised standard better supports high audit quality and delivers more decision-useful information to users of financial statements.”

“Stakeholders made it clear: achieving consistency was necessary, but not sufficient,” said Julie Corden, former IAASB member and Chair of the IAASB Fraud Task Force. “This standard represents a practical and meaningful shift in how auditors assess and respond to fraud risks.”

Key Enhancements in ISA 240 (Revised)

The standard incorporates the following elements:

• Clearer Auditor Responsibilities – Strengthens and clarifies what auditors are expected to do when addressing risks relating to fraud.
• Reinforced Professional Skepticism – Introduces new requirements to elevate the consistency and effective practice of professional skepticism across all stages of the audit.
• Sharper Fraud Risk Assessment – Requires a focused “fraud lens” when identifying and addressing risks, with stronger links to related standards.
• More Effective Fraud Responses – Establishes a new section with clearer, enhanced requirements to guide how auditors respond to identified or suspected fraud.
• Improved Transparency and Communication – Emphasizes timely communication with management and those charged with governance, with clearer disclosures in the auditor’s report.

The revisions also align with ISA 570 (Revised 2024), Going Concern, recognizing that fraud and financial distress are often interrelated risks that must be addressed together to bolster corporate transparency and resilience.

Effective Date and Resources
ISA 240 (Revised) becomes effective for audits of financial statements for periods beginning on or after December 15, 2026. To support implementation, the IAASB has published a fact sheet and Basis for Conclusions, available on its website here. A video series will follow in the coming weeks.

The IAASB encourages jurisdictions to consider early adoption of ISA 240 (Revised), ISA 570 (Revised 2024), and the forthcoming narrow-scope amendments for publicly traded entities as a cohesive package. Together, these standards provide a stronger, more coordinated response to the risks of fraud and financial distress.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions