The International Auditing and Assurance Standards Boards (IAASB) has approved the withdrawal of International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements.

This decision follows the approval and certification in 2024 of the International Standard on Sustainability Assurance (ISSA)^TM 5000, General Requirements for Sustainability Assurance Engagements. ISSA 5000 addresses assurance of all types of sustainability information, including greenhouse gas emissions, regardless of how that information is presented.  It is effective for assurance engagements on sustainability information reported for periods beginning on or after December 15, 2026, or as at a specific date on or after December 15, 2026.

Consequently, the withdrawal of ISAE 3410 will take effect from the effective date of ISSA 5000.

The Stakeholder Advisory Council (SAC) of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) convened in New York on May 5-6 providing strategic advice to the two boards on key challenges and opportunities in global standard setting for audit, assurance and ethics, including independence.

The SAC is the multi-stakeholder body appointed by the Public Interest Oversight Board (PIOB) to offer input and recommendations to the two standard setting boards (SSB). Reflecting its diverse regional and stakeholder composition, the meeting brought forward a wide range of perspectives to support the public interest and reflect the changing external environment.

Amid today’s volatile global regulatory and economic context, the SAC emphasized the growing relevance of robust standard setting as a stabilizing force, underscoring it should remain anchored in its long-term value and the public interest.

Discussions highlighted the importance of:

• Effective strategic positioning to address key trends impacting the reporting ecosystem, namely deregulation and fragmentation, emerging developments in technology (e.g., artificial intelligence, digital assets), continued demand for sustainability information, and challenges in talent attraction and retention.
• Clear definition and proactive communication of the value and impact of the global international standards produced by both boards, including the role they play in supporting confidence in capital markets.
• Regular dialogue and engagement between the Boards and stakeholders to ensure that the standard-setting work remains responsive to market needs and serves the public interest. These include targeted outreach with users of financial statements and partnering with professional accounting organizations, regulators, investor representatives and other relevant institutions.

Alan Johnson, the SAC Chair, commented on the value of the strategic advice provided by the SAC Members and the Observers during the meeting and their engagement with the two Boards on significant issues and potential challenges affecting the standard-setting environment.

“High-quality global standards are essential tools for mitigating risks to companies, investors, firms, and other stakeholders that may arise from financial market fragmentation and poor-quality financial and non-financial information. SAC remains fully committed to supporting both the IAASB and IESBA in advancing their important public interest missions”, said SAC Chair Alan Johnson.

Gabriela Figueiredo Dias and Tom Seidenstein, respectively the IESBA and IAASB Chairs, thanked the SAC for their excellent contributions, advice and support, and welcomed continued engagement with the SAC members.

A summary of the meeting will be published on the SAC web page in the coming weeks. The SAC is scheduled to meet again on October 21–22, 2025.

SAC Members and Observers participating in the meeting were:

In Person:

• Abdelilah Belatik – General Council, Islamic Banks and Financial Institutions
• Alan Johnson – Chair, Stakeholder Advisory Council
• Bello Lawal Danbatta – Accounting and Auditing Board of the Accounting and Auditing Organisation for Islamic Financial Institutions
• Chikako Matsumoto – Managing Executive Officer, Sumitomo Mitsui Trust Bank
• Claes Norberg – Corporate Reporting Specialist, FAR
• Doug Niven – Chair, Australian Auditing and Assurance Standards Board
• Dr. Jianhua Tang – Director of Professional Standards, Chinese Institute of Certified Public Accountants
• Duane DesParte – Independent Non-Executive, Ernst and Young Global Governance Council
• Hilde Blomme – Deputy Chief Executive, Accountancy Europe
• Ivanyra Correia – Board Member and Finance Executive (Brazil)
• Javier de Frutos – Chair of the Commission on Financial Reporting, European Federation of Financial Analysts’ Societies
• Jennifer Haskell – Global Audit & Assurance Quality Excellence Leader, Deloitte
• Koichiro Kuramochi – Chief Accountant/Director for International Accounting, Japan Financial Services Agency
• Matthew Winters – Senior Director of Financial Reporting Policy Advocacy, CFA Institute (USA)
• Monica Foerster – Partner, Confidor
• Natasha Landell-Mills – Partner and Head of Stewardship, Sarasin & Partners
• Nicole Ratzinger-Sakel – Auditing and Accounting Professor, University of Hamburg
• Nikolaos Papadimos – Vice Chair, Hellenic Accounting and Auditing Standards Oversight Board
• Steven Lipiner – Independent Board Trustee, Pacific Investment Management Company
• Susan Coffey – Chief Executive Officer of Public Accounting, United States Association of International Certified Professional Accountants
• Toshimitsu Suzuki – Chief Representative, Daiwa Institute of Research Ltd.
• Vicki Myburgh – Partner & Africa Risk and Quality Leader, PwC

Virtually:

• Ashley Rangel – Deputy Chief Accountant, Office of the Chief Accountant, United States Office of the Comptroller of the Currency
• Conchita Manabat – Chair, Advisory Council, International Association of Financial Executives Institutes
• David Correia – Director, Accounting Policy Division, Office of the Superintendent of Financial Institutions (Canada)
• Hina Usmani – Founder and Managing Partner, Usmani & Co.
• Iheanyi Anyahara – Financial Reporting Council of Nigeria
• Isabelle Grauer-Gaynor – Head of the Corporate Finance and Reporting Unit, European Securities and Markets Authority
• Jose Esposito – Chief Audit Executive, Banco de Crédito del Perú / Credicorp Ltd
• Nana Li – Head of Sustainability & Stewardship, Asia-Pacific, Impax Asset Management

Observers:

• George Kabwe – Assistant Director, Finance, International Monetary Fund
• James Ferris – Director, UK Audit Policy, United Kingdom Financial Reporting Council
• Dave Sullivan – Member, Public Interest Oversight Board

The meeting was also attended by the SSB chairs, vice-chairs, and staff and was open to public observation.

About the Stakeholder Advisory Council
The Stakeholder Advisory Council (SAC) provides input and recommendations to the International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA). It is a forum for the IAASB and IESBA to engage with a diverse range of their external stakeholders, thereby drawing on additional expertise and experience for their standard-setting projects. Members are appointed by the Public Interest Oversight Board (PIOB).

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 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.

The International Federation of Accountants (IFAC) and the International Ethics Standards Board for Accountants (IESBA), alongside the International Auditing and Assurance Standards Board (IAASB), convened a multi-stakeholder Summit in Paris on 14 April 2025. 

The Summit, held in response to a call to action by Lee White, Chief Executive Officer of IFAC, focused on the practical implementation of the new International Ethics Standards for Sustainability Assurance (IESSA), and strengthening current and future engagement with the IESBA and the IAASB in the evolving global standard-setting landscape. 

Hosted by IFAC French member the Compagnie Nationale des Commissaires aux Comptes (CNCC), and opened by its President Philippe Vincent, the summit was observed by the Public Interest Oversight Board (PIOB) and brought together over 50 global leaders from Africa, Asia-Pacific, the  Americas, and Europe, including IFAC member organizations and other professional accounting organizations, practitioners, regulators, investors, business preparers, supervisors and standard setters, offering a remarkable blend of perspectives, skills, and knowledge. 

The summit reaffirmed the important role that global assurance and ethics standards need to play in building trust in reported sustainability information, and hence the importance of ensuring successful global adoption and implementation. 

Drawing on the rich and diverse contributions, IFAC, IESBA, and IAASB leadership acknowledge two priority areas highlighted by participants for engagement among the standard-setters, oversight bodies, and IFAC: 

1. The clear value of enhanced coordination among the IESBA, the IAASB and IFAC leadership, working together to maximize the use of limited resources to progress the adoption of the IESBA’s and the IAASB’s international standards globally and support their consistent implementation.
2. The importance of continued improvement in the transparency and effectiveness of the due process for standard setting, including: 
   • Appropriate effects analysis of new or revised standards; 
   • The performance of post-implementation reviews of significant new or revised standards, generally within five years post-effective date; 
   • Use of narrow scope amendments to resolve relevant issues identified through implementation or emerging issues monitoring mechanisms; and 
   • Enhanced engagement and feedback on how stakeholder input is considered and feeds into decisions. 

The IESBA and IAASB chairs committed to taking forward those suggestions through engagement with their respective boards, the PIOB as their oversight body, and other governance and institutional bodies in their system. 

Participants at the roundtable also supported active engagement with the Monitoring Group and the PIOB to inform the approach to, and timing of, a post-implementation review of the July 2020 Monitoring Group reforms to strengthen the international audit and ethics standard-setting system. 

IFAC, IESBA, and IAASB will continue to focus on furthering the public interest and commit to convening another multistakeholder summit in Q4 2026 or Q1 2027. 

Lee White, CEO of IFAC, said “I thank all of those who participated in the summit. What encouraged me most was the spirit of serving the public interest, shared responsibility and collaboration amongst all stakeholders. I am delighted to see there is consensus that standards should be of high-quality, but also practical, inclusive, and fit for purpose. That’s how we build trust and resilience across the entire ecosystem.” 

Gabriela Figueiredo Dias, Chair of the IESBA, said “The IESBA commends IFAC for convening this important summit and is encouraged by constructive suggestions shared by a wide range of participants. We are fully committed to improving the practices that connect us all, as well as to the adoption and effective implementation of global standards on assurance, ethics, and independence. Both I, personally, and the IESBA call for and stand ready to support impactful initiatives from all involved parties that promote the public interest and embed ethics as the DNA that guides the global accountancy profession in all its activities and services.” 

Tom Seidenstein, Chair of the IAASB, said “I welcomed the invitation to participate in this timely event. I am heartened by the continued support for international standards set by independent standard-setters committed to robust due process. Ever deepening engagement with IAASB stakeholders and coordination with IESBA are leading strategic objectives of the IAASB, and the summit provided valuable recommendations in both of those areas.”  

About IFAC 

IFAC, by connecting and uniting its members, makes the accountancy profession truly global.     

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.     

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.   

About IESBA  

The International Ethics Standards Board for Accountants (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. 

Along with the International Auditing and Assurance Standards Board, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. 

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. 

The International Auditing and Assurance Standards Board (IAASB) has opened a public consultation on narrow-scope amendments to its standards to maintain interoperability between IAASB standards and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code). These proposed amendments address recent revisions to the IESBA Code related to using the work of an external expert.

The targeted amendments focus on the following IAASB standards:

• ISA 620, Using the Work of an Auditor’s Expert
• ISRE 2400 (Revised), Engagements to Review Historical Financial Statements
• ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information
• ISRS 4400 (Revised), Agreed-upon Procedures Engagements

How to Comment
The IAASB invites all stakeholders to comment using the digital Response Template, which is available on the IAASB website. Feedback is requested by July 24, 2025.

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.

The International Federation of Accountants (IFAC) has launched a public consultation on targeted revisions to its Statements of Membership Obligations (SMOs), a cornerstone of IFAC and its members’ commitment to a strong and sustainable global accountancy profession. These requirements provide the foundational framework that supports the profession in upholding high-quality international standards and best practices.

The proposed revisions focus on key areas to reflect developments in international standards and reinforce the profession’s role in serving the public interest. When final, the proposed changes will require IFAC members to:

• Enhance Quality Assurance Reviews – Updates quality assurance review procedures to align with the International Auditing and Assurance Standards Board’s (IAASB) quality management standards.
• Emphasize Flexible Entry Requirements for Accounting Education Programs – Reinforces the evaluation of flexibility entry pathways into professional accounting education as outlined in the International Education Standards (IES).
• Evaluate Adoption of the IAASB’s ISA for LCE – Clarifies expectations for adopting and implementing the International Standard on Auditing for Less Complex Entities (ISA for LCE).
• Adopt IFRS Sustainability Disclosure Standards – Formalizes the expectation to adopt or work toward the adoption of all IFRS Standards, including S1 and S2, issued by the International Sustainability Standards Board (ISSB).

In line with IFAC’s commitment to delivering value to its members and upholding global best practice, IFAC invites feedback from its members, members of the Forum of Firms, Network Partners and other regional accountancy organizations, regulators, standard setters, and other key stakeholders. These insights are crucial to ensuring the SMOs remain relevant, fit for purpose, and aligned with evolving international standards.

Feedback can be provided via a response template form, available on the IFAC website. The consultation is open until August 8, 2025. Following this public consultation and IFAC Board approval, the revised SMOs are expected to take effect on January 1, 2026.

For more information and to participate in the current consultation, visit the IFAC website.

About IFAC
IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

The International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants applaud the appointment of Ryan Wolfe as the new Chair of the Monitoring Group.

Commenting on Mr. Wolfe’s appointment, Gabriela Figueiredo Dias and Tom Seidenstein, IESBA and IAASB Chairs, respectively, said: “We are delighted to welcome Mr. Wolfe as the new Chair of the Monitoring Group. His extensive experience in regulatory oversight roles and his new role as Acting Chief Accountant of the U.S. Securities and Exchange Commission will bring invaluable perspective and expertise to this important position.

“The Monitoring Group plays a crucial role in advancing the public interest in international standard setting. We are confident that under Mr. Wolfe's leadership, the Monitoring Group will continue to promote high-quality international audit, assurance, ethics, and independence standards, benefiting investors and other stakeholders in global capital markets.

“We look forward to working closely with Mr. Wolfe, and continuing to partner with the Monitoring Group. Together, we will strive to ensure that our standards remain relevant and aligned with evolving international practices.

“Congratulations, Mr. Wolfe, on this new role. We wish you great success.”

The International Auditing and Assurance Standards Board (IAASB) today released its revised International Standard on Auditing 570 (Revised 2024), Going Concern. The revised standard responds to corporate failures that raised questions regarding auditors’ responsibilities by significantly enhancing the auditor’s work in evaluating management’s assessment of an entity’s ability to continue as a going concern. Effective for audits of financial statements for periods beginning on or after December 15, 2026, the standard will also increase consistency in auditing practices and strengthen transparency through communications and auditor reporting on matters related to going concern in a consistent manner.

ISA 570 (Revised 2024) introduces several key changes:

• Robust risk assessment. Auditors must conduct, in a more timely manner, thorough risk assessments to determine whether events or conditions are identified that may cast significant doubt on the entity’s ability to continue as a going concern.
• Evaluating Management’s Assessment. Auditors must evaluate management’s assessment of going concern irrespective of whether events or conditions are identified. In doing so, auditors must consider the potential for management bias and evaluate the underlying method, significant assumptions, and data used when management formed its assessment. Additionally, auditors must evaluate whether management’s judgements and decisions indicate potential bias.
• Extended date of evaluation period. The auditor’s evaluation period for going concern now extends at least twelve months from the date of approval of the financial statements, contributing to an assessment of more relevant, decision-useful information.
• Enhanced transparency. The standard requires clearer communication in the auditor’s report about the auditor’s responsibilities and work related to going concern and strengthened communications with those charged with governance and external parties.

“This milestone addresses calls from investors, regulators, and other stakeholders for more robust audit procedures related to going concern. It provides decision-useful, entity-specific information in the auditor’s report regarding the auditor’s work and responsibilities for going concern,” noted IAASB Chair Tom Seidenstein. “The changes in the standard further advance high-quality audits and help narrow the expectation gap, thereby supporting users’ interests and broader financial stability.”

To support successful implementation, the IAASB also developed a fact sheet and Basis for Conclusions, which are available on the IAASB’s website. The IAASB will also issue a frequently asked questions document and technical overview video to support the revised standard’s implementation.

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.

• Consultation Paper seeks views on auditor independence matters pertaining to audits of Investment Schemes when these Schemes involve “Connected Parties”

• The consultation aims to inform the IESBA’s consideration of whether its International Independence Standards are sufficiently clear and fit for purpose for such audits

• The IESBA welcomes comments from all interested parties, including financial industry representatives, audit firms, experts, investors, regulators and jurisdictional standard setters

The International Ethics Standards Board for Accountants (IESBA) today issued a Consultation Paper seeking feedback on whether revisions to the International Code of Ethics for Professional Accountants^TM (including International Independence Standards^TM) (the “Code”) are necessary to address the independence of auditors when they carry out audits of Collective Investment Vehicles (CIVs) and Pension Funds (collectively referred to as “Investment Schemes” or “Schemes”).

Investment Schemes enable investors to pool their funds and often rely on external parties (“Connected Parties”) for functions typically managed internally in conventional corporate structures. This structure introduces specific relationships that are highlighted in the Consultation Paper and need to be carefully considered to ensure that any threats to auditor independence are identified and appropriately addressed.  

According to the Investment Company 2024 Factbook, total net assets of worldwide regulated open-end funds, which include CIVs, stood at around US$69 trillion in 2023. As collective investment structures continue to evolve and the number of investors and assets under management increase globally, the IESBA recognizes the need for robust and clear independence standards and guidance to maintain public trust in the audits of these Schemes.

“Investment Schemes play a critical role in both the savings and retirement of ordinary citizens and in the development and growth of our economies,” said Gabriela Figueiredo Dias, Chair of IESBA. “This underscores the high level of public interest, and therefore the fundamental role of the independent audit, in this segment of the global financial system. Through this consultation, we are inviting stakeholders to share their insights and perspectives on specific matters to ensure that our independence standards remain relevant and capable of consistent application across audits of these Schemes globally.”

Key areas of focus include:

• The definition of "related entity" in the Code and its applicability to audits of Investment Schemes.
• The Connected Parties that should be considered in relation to the assessment of auditor independence with respect to the audit of an Investment Scheme.
• The application of the Code’s conceptual framework when assessing threats to independence resulting from interests, relationships, or circumstances between the auditor of an Investment Scheme and Connected Parties.

The development of the Consultation Paper was informed by desktop research and stakeholder outreach during the course of 2024.

How to Comment

Stakeholders are invited to submit their comments electronically through the IESBA website by June 30, 2025. The feedback will inform the IESBA Project Team's report and recommendations to the IESBA on whether enhancements or clarifications to the Code are warranted.

For more information and to access the Consultation Paper, please visit the IESBA website.

The International Auditing and Assurance Standards Board (IAASB) today released a new first-time implementation guide for the ISA for LCE—the standalone global auditing standard designed specifically for audits of financial statements of smaller and less complex entities (LCE). The guide provides an overview of the standard’s concepts, structure, and format. It offers step-by-step insights into each Part of the standard with examples and comparisons to ISAs, equipping practitioners with the tools to effectively implement the ISA for LCE.

Available on the IAASB website, the guide complements previously released resources, including an adoption guide, supplementary guidance on the authority of the standard and on auditor reporting, videos, and webinars. Together, these materials form a comprehensive toolkit to support effective implementation.

This guidance does not amend or override the authoritative text of the ISA for LCE but serves as a valuable resource to facilitate understanding and application. Explore the guide and additional resources at: www.iaasb.org/ISAforLCE.

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.

About 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.

The Public Interest Oversight Board’s (PIOB) Standard-Setting Boards Nominations Committee is now accepting applications for an upcoming vacancy on the International Ethics Standards Board for Accountants (IESBA), with the term beginning January 1, 2026. The application window remains open until May 11, 2025.

Serving as a member of the IESBA is a unique opportunity for experienced professionals from diverse backgrounds to help shape global ethics standards for the accountancy profession in the public interest. The PIOB welcomes applications from individuals across all sectors, including investors, corporate governance experts, regulators, national standard setters, audit practitioners, professional accountancy organizations, public sector representatives, and academia. A parallel invitation for applications has been issued for the International Auditing and Assurance Standards Board (IAASB), with the same application deadline of May 11, 2025.

Joining the IESBA offers professionals a platform to influence the development of globally recognized ethics standards that support trust, integrity, and confidence in the accountancy profession and global financial markets. Board members play a vital role in strengthening ethical practices in the public interest.

For more details on the nomination process for IESBA, visit the PIOB’s nominations web page or contact SSBNominations@ipiob.org.