ISA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, has been revised to deliver clearer responsibilities, stronger risk response, and improved transparency. The revised standard clarifies the auditor’s responsibilities, emphasizes a fraud lens in the auditor’s risk assessment and the appropriate responses to identified risks, and provides greater transparency in the auditor’s reports of publicly traded entities.
The International Auditing and Assurance Standards Board (IAASB) has published a new Frequently Asked Questions document for the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), its standard tailored for financial audits of smaller and less complex entities. This new FAQ addresses common questions received during webinars and outreach following the standard’s publication in December 2023, offering timely and practical clarifications. It also replaces a previously issued FAQ.
This release represents the final planned component of the IAASB’s implementation support package for the ISA for LCE, complementing the previously released adoption guide, fact sheet, first-time implementation guide, and other supplemental materials. Together, these resources provide a comprehensive suite of tools to support effective implementation.
The IAASB remains committed to supporting the adoption and implementation of the ISA for LCE through continued outreach and engagement with stakeholders, as well as with global and jurisdictional regulators.
While the FAQ does not amend or override the authoritative text of the ISA for LCE, it serves as a helpful tool to support consistent understanding and application of the standard.
About the ISA for LCE Built on the foundation of the International Standards on Auditing (ISAs), the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, or the ISA for LCE, is proportionate and tailored to the specific needs of audits of less complex entities. Its streamlined approach enhances usability for practitioners performing these engagements.
This FAQ addresses common questions received during webinars and outreach following the ISA for LCE's publication in December 2023, offering timely and practical clarifications. It also replaces a previously issued FAQ.
Joint FAQs from IAASB and IESBA Staff support interoperability and consistent application of ISSA 5000 and IESSA
IESBA Staff Q&As explain key aspects of IESSA to support effective implementation of the ethics and independence standards for sustainability assurance engagements
Resources help stakeholders implement the new global sustainability standards with clarity and confidence
The Staffs of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) today released two new publications to support implementation of the IAASB’s and IESBA’s global sustainability-related standards: the International Standard on Sustainability Assurance (ISSA) 5000 and the International Ethics Standards for Sustainability Assurance (IESSA).
Developed in close coordination and launched in January 2025, ISSA 5000 and IESSA provide a coordinated global assurance and ethics framework for sustainability assurance engagements. The new publications aim to highlight the interoperability of the two Boards’ standards and to assist practitioners in the consistent application of the standards.
Frequently Asked Questions (FAQs) on Sustainability Assurance Engagements
These FAQs issued jointly by IAASB and IESBA Staff address practical questions about applying ISSA 5000 and IESSA together. They address the following areas:
Identifying relevant ethical requirements
Determining group and value chain components
Using the work of another practitioner
Addressing IESSA disclosure requirements in the assurance report
IESBA Staff Q&As on IESSA
The IESBA Staff Questions and Answers publication focuses on ethics and independence considerations for practitioners performing sustainability assurance engagements.
Topics covered include:
The scope of the ethics and independence standards in IESSA
Independence considerations for group sustainability assurance engagements, including value chain components
Independence considerations applicable to using the work of another practitioner
Providing non-assurance services to a sustainability assurance client
Effective date of the IESSA
The joint IAASB and IESBA Staff FAQs are available on both the IAASB and IESBA websites; the IESBA Staff Q&A publication is available on the IESBA website. For more information, visit www.ethicsandaudit.org/TrustInSustainability.
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 IESBA is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting high-quality, international ethics (including independence) standards as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.
New Materials Enhance Understanding and Support Global Adoption and Implementation of Sustainability Assurance and Ethics Standards
The International Foundation for Ethics and Audit (IFEA) is now accepting applications for its 2025 Staff Fellows Program—a unique opportunity for accomplished professionals to work with the International Auditing and Assurance Standards Board (IAASB) or the International Ethics Standards Board for Accountants (IESBA) on a temporary, seconded basis.
Staff Fellows are seconded from their current employer to work alongside IAASB or IESBA staff on a variety of international standard-setting projects, including research and analysis, drafting, project management, and global stakeholder engagement. Fellowships typically begin in September and last from six months to two years.
The program offers numerous benefits to both Fellows and their sponsoring organizations, including strengthened global networks, enhanced knowledge of international standards, and valuable professional development. Relocation to New York is encouraged but not required.
IFEA welcomes applications from professionals with a proven track record, technical expertise, and a collaborative mindset. Interviews for the 2025 cohort will take place in June and July. Interested organizations should submit candidate CVs to ifeahumancapital@ethicsandaudit.org by July 31, 2025.
