ISCA Invites Comments on Exposure Drafts for SSA 570 (Revised 2024) Going Concern and SSA 240 (Revised) The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements

Recent corporate failures and high-profile fraud cases have undermined trust in financial reporting and shaken public confidence. In response, investors, regulators, and audit professionals have called for stronger auditing standards—especially in the areas of going concern and fraud.

Singapore Standard on Auditing (SSA) SSA 570 (Revised 2024), Going Concern and SSA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements directly address core public interest concerns. Together, they strengthen audit quality and provide users of financial statements with more decision-useful information.

SSA 570 (Revised 2024)

SSA 570 (Revised 2024) deals with the auditor’s responsibilities in the audit of financial statements relating to going concern and the implications for the auditor’s report.

The revised standard will become effective for audits of financial statements for periods beginning on or after 15 December 2026.

Key revisions from extant SSA 570 (Revised)

SSA 570 (Revised 2024) introduces several key changes:

• Robust risk assessment. Auditors must conduct thorough risk assessments in a more timely manner, to determine whether events or conditions are identified that may cast significant doubt on the entity’s ability to continue as a going concern.

• Evaluating Management’s Assessment. Auditors must evaluate management’s assessment of going concern irrespective of whether events or conditions are identified. In doing so, auditors must consider the potential for management bias and evaluate the underlying method, significant assumptions, and data used when management formed its assessment. Additionally, auditors must evaluate whether management’s judgements and decisions indicate potential bias.

• Extended date of evaluation period. The auditor’s evaluation period for going concern now extends at least twelve months from the date of approval of the financial statements, contributing to an assessment of more relevant, decision-useful information.

• Enhanced transparency. The standard requires clearer communication in the auditor’s report about the auditor’s responsibilities and work related to going concern and strengthened communications with those charged with governance and external parties.

SSA 240 (Revised)

SSA 240 (Revised) deals with the auditor’s responsibilities relating to fraud in an audit of financial statements and the implications for the auditor’s report.

The revised standard will become effective for audits of financial statements for periods beginning on or after 15 December 2026.

Key revisions from extant SSA 240 (Revised)

The revised standard incorporates the following elements:

• Clearer auditor responsibilities – Strengthens and clarifies what auditors are expected to do when addressing risks relating to fraud.

• Reinforced Professional Skepticism – Introduces new requirements to elevate the consistency and effective practice of professional skepticism across all stages of the audit.

• Sharper Fraud Risk Assessment – Requires a focused “fraud lens” when identifying and addressing risks, with stronger links to related standards.

• More Effective Fraud Responses – Establishes a new section with clearer, enhanced requirements to guide how auditors respond to identified or suspected fraud.

• Improved Transparency and Communication – Emphasizes timely communication with management and those charged with governance, with clearer disclosures in the auditor’s report.

For stakeholders’ comments

ISCA would like to seek views from key stakeholders on the above exposure drafts.

ISCA requires all comments to be submitted to professionalstandards@isca.org.sg by 31 October 2025.

Please click here for ED-SSA 570 (Revised 2024) and here for ED-SSA 240 (Revised).