The proposed revisions define the expectations in relation to fraud, delineate more robust procedures, and increase transparency about the auditors’ responsibilities and fraud-related procedures in the auditor’s report.

Key Changes in the Proposed Revisions include:

• Clarified auditor responsibilities relating to fraud in an audit.
• Emphasized professional skepticism to ensure auditors remain alert to possible fraud and exercise professional skepticism throughout an audit.
• Strengthened identification and assessment of risks of material misstatement due to fraud.
• Clarified response to fraud or suspected fraud identified during the audit.
• Increased ongoing communication with management and those charged with governance about fraud.
• Increased transparency about auditors’ responsibilities and fraud-related procedures in the auditor’s report.
• Enhanced audit documentation requirements about fraud-related procedures.

Respondents are encouraged to share their insights using the response template by June 5, 2024.

Access the exposure draft and response template on IAASB’s website.