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The International Auditing and Assurance Standards Board (IAASB) released for public consultation proposed revisions to three International Standards on Auditing (ISAs): ISA 330, The Auditor's Responses to Assessed Risks; ISA 500, Audit Evidence; and ISA 520, Analytical Procedures.
The proposed revisions, when finalized, will complete an important phase of the IAASB's decade-long modernization of the International Standards on Auditing, building on recent revisions, including ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement.
The proposals further embed, clarify and strengthen a principles-based, risk-based audit framework. The revisions also address the increased use of technology in business, financial reporting, and auditing.
The proposed revisions establish a comprehensive basis for auditors’ judgments about audit evidence. They include:
- a revised definition of audit evidence to reflect today’s digital environment;
- greater emphasis on the intended purposes of audit procedures;
- strengthened requirements for evaluating the relevance and reliability of information used as audit evidence;
- clarification of key concepts; and
- reinforced application of professional skepticism throughout the audit.
The proposals also strengthen auditors' responses to assessed risks by clarifying the role of tests of controls, substantive procedures, and analytical procedures–promoting more consistent and effective audit responses. The proposals reflect the
IAASB’s conclusion that a principles-based rather than technology-specific approach is the best way to maintain robust and relevant standards in the face of rapid technological evolution. They enable innovation while preserving the core principles
of high-quality auditing. In addition, the proposals include guidance to help auditors exercise professional judgment about appropriate use of technology.
The proposed revisions also improve the alignment of concepts and principles across the auditor’s risk assessment, responses to assessed risks, and evaluation of whether sufficient appropriate audit evidence has been obtained.
ISCA invites comments to be submitted to professionalstandards@isca.org.sg by 9 October 2026.