New international auditing standard on fraud

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28 Feb 2004

The International Auditing and Assurance Standards Board (IAASB) has released a revised International Standard on Auditing requiring auditors to be more proactive in considering the risk of fraud in an audit of financial statements and has issued new quality control standards addressed at both audit firms and engagement teams.

The new ISA, The Auditor's Responsibility to Consider Fraud in the Audit of Financial Statements, requires the auditor to focus on areas where there is a risk of material misstatement due to fraud, including management fraud. The standard is effective for audits of financial statements for financial periods beginning on or after 15 December 2004. The two quality control standards approved by the IAASB (both effective 1 July 2005) are:

  • Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
  • Quality Control for Audits of Historical Financial Information
Click for link to IFAC Press Release which itself has links to the new standards. They may be downloaded without charge.

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