Revising ISA 315: why the IAASB needs to get it right
Proposals to revise ISA 315 will be far-reaching, so ICAEW is urging the IAASB to take the time to get it right, says Katharine Bagshaw. She covers inherent and significant risks, IT, work on controls and ‘smaller and less complex entities’
The International Audit and Assurance Standards Board (IAASB) is proposing changes to the International Standard on Auditing (ISA) 315 (Revised) Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment. ISA 315 is the ISA from which all other ISAs flow. All ISAs are now risk-based and the effects of the latest revision will be far-reaching.
ISA 315 was last revised back in 2003. The main areas of the newly proposed revision cover: