IAASB Enhances and Modernizes ISA 315

The International Auditing and Assurance Standards Board (IAASB) has released International Standard on Auditing (ISA) 315 (Revised 2019), its revised standard for identifying and assessing risks of material misstatement.

ISA 315 (Revised 2019) is an important part of the IAASB’s efforts to improve audit quality globally. In finalizing the changes, the IAASB focused on the understandability, complexity and length of the standard, and made enhancements and clarifications to encourage a more consistent and robust risk assessment, which forms the foundation of the auditor’s efforts to gather sufficient appropriate audit evidence. The revisions also modernize the standard to keep up with the evolving environment in which businesses operate, in particular in relation to technology, as well as a focus on why procedures are required.

“This revised standard is the second significant standard to be completed in our efforts to enhance audit quality. ISA 315 (Revised 2019) is foundational to the audit – the core of the audit is undertaking work to obtain sufficient appropriate audit evidence to address the risks of material misstatement, and the changes made to ISA 315 (Revised 2019) recognize the importance of a robust and consistent risk assessment in driving an appropriate and effective response to those risks,” says Tom Seidenstein, IAASB Chair.