To ensure that International Standards on Auditing continue to form the basis for high-quality, valuable and relevant global audits, the IAASB Exposure Draft, ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement, proposes more robust requirements and improved guidance.
ACCA CA ANZ joint response broadly supports the proposed methodology, which we believe has the capacity to enhance the auditor’s risk assessment procedures, and therefore increase audit quality.
However, as outlined below, we have some serious concerns about the language and structure of the proposed revision to the standard, which we believe may prevent consistent application. In particular, there is an urgent need for the complex language used in the standard and its complex structure to be revised. We believe that standards should be written using the clearest language and simplest structure in order to enable users to understand them, and therefore apply them, in the manner intended.
To read in full, please download the consultation response.