Audit Evidence [ED]

Comments were requested (i) the AASB, by March 15, 2023; (ii) the IAASB, by April 24, 2022

Next steps:

The IAASB will review the responses to its Exposure Draft in Q2/2023. The AASB is deliberating feedback on its Exposure Draft – “CAS 500, Audit Evidence”

Last up­dated:

September 2023

Overview

At its meeting on July 15-19, 2020, the IAASB discussed the outcome of the Audit Evidence Working Group’s information gathering and targeted outreach activities. The Board supported the Audit Evidence Working Group’s recommendation to develop a project proposal to revise ISA 500, Audit Evidence, for approval at the December 2020 IAASB meeting.

In the interim the IAASB plans to evolve its approach, as presented, to progress the revision of ISA 500 (and conforming and consequential amendments to other standards). The Board also recommended that the Working Group publish a project update to inform stakeholders about the activities undertaken to date. This Project Update was issued on September 3, 2020.

On October 24, 2022, the IAASB issued an Exposure Draft in respect of this project. Comments are requested by April 24, 2022. The proposed changes:

  • Clarify ISA 500’s purpose and scope and explain its relationship with other standards;
  • Provide a principles-based approach to considering and making judgments about information intended to be used as audit evidence and evaluating whether sufficient appropriate audit evidence has been obtained;
  • Modernize ISA 500 to be adaptable to the current business and audit environment, while considering scalability for different circumstances, including the entity and the auditor’s use of technology, such as automated tools and techniques; and
  • Emphasize the role of professional skepticism when making judgments about information intended to be used as audit evidence and evaluating the audit evidence obtained.

On November 23, 2022, the AASB issued its equivalent Exposure Draft in respect of the amendments to CAS 500, Audit Evidence. Comments are requested by March 15, 2023.

For more in­for­ma­tion and up­dates on the IAASB’s cur­rent pro­ject on Audit Evidence, visit the IAASB’s pro­ject page.

 

Other De­vel­op­ments

May 2023

On May 30, 2023, the AASB submitted a response letter to the IAASB on the Exposure Draft, ISA 500, Audit Evidence. Generally, it supports the revisions to this standard and the clarity added to how auditors obtain and evaluate audit evidence. The AASB believes the principles-based approach in this standard will allow auditors to adapt the requirements to audits of all sizes, complexities, and whether technology is used by an auditor or not. However, for the standard to better reflect the digital era and incorporate the evolution in the business and audit environment, the AASB suggested a few enhancements.

November 2022

On November 23, 2022, the AASB issued its equivalent Exposure Draft in respect of the amendments to CAS 500, Audit Evidence. Comments are requested by March 15, 2023.

October 2022

On October 24, 2022, the IAASB opened the public consultation for proposed changes to one of its fundamental standards, International Standard on Auditing (ISA) 500, Audit Evidence.

December 2020

In December 2021, the IAASB staff updated the work plan to indicate that the Audit Evidence Task Force intends to present to the IAASB a first full draft of the proposed revisions to ISA 500 at its  March 2022 meeting.

September 2020

On September 3, 2020, the IAASB’s Audit Evidence Working Group published a Project Update for International Standard on Auditing (ISA) 500, "Audit Evidence". The Update includes details about its information gathering activities, issues identified to date, and the way forward for audit evidence.

 

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