IAASB enhances and modernizes ISA 315
FINANCIAL REPORTING INSIGHTS |
The International Auditing and Assurance Standards Board (IAASB) recently issued International Standard on Auditing (ISA) 315 (Revised 2019), its revised standard for identifying and assessing risks of material misstatement. In this revised standard, the IAASB made enhancements and clarifications to encourage a more consistent and robust risk assessment, focusing on why procedures are required. The revisions also modernized the standard to reflect the evolving environment in which businesses operate, in particular with respect to technology. ISA 315 (Revised 2019) is effective for financial statement audits for periods beginning on or after December 15, 2021.