IAASB exposure drafts: proposed revisions to ISA 330, ISA 500 and ISA 520 (audit evidence and risk response)

Summary

The IAASB opened a public consultation on August 5, 2026 on proposed revisions to ISA 330, ISA 500 and ISA 520, with feedback due December 15, 2026. The proposals are described as principles-based rather than technology-specific. Proposed ISA 500 (Revised) would require the auditor to evaluate the accuracy and completeness of information produced by the entity to the extent necessary for the purpose of the audit procedure. Its application material counts outputs of the entity's information system as such information and lists reconciliations and system-generated reports as examples. The exposure draft also names automation bias, undue weight on automated output, as a bias. The IAASB anticipates final approval in December 2027, with effect for periods beginning at least 18 months later. Separately, the IAASB expects to issue the first guide in a non-authoritative series on applying its quality-management standards to AI-enabled tools in November 2026, subject to approval at its October 28 meeting.

Key dates

1. October 16, 2026Checked against sources
2. December 15, 2026Key date

Developments are added when the record is reviewed. Next review: January 12, 2027.

Evidence

Each passage is quoted from its source. The quoted passages are re-checked against the live pages every month.

1. The proposals further embed a principles-based, risk-based audit framework while supporting rapid digital innovation in an evolving business, financial reporting, and technology environment. Share your feedback by December 15, 2026.

   Supports: Comment deadline December 15, 2026; principles-based

   August 5, 2026 Consultation Launch Exposure Drafts, response form, introductory video, and stakeholder slide deck published.

   Supports: Consultation launched August 5, 2026

   Strengthening the Risk-Based Audit Framework (consultation page, timeline) International Auditing and Assurance Standards Board (IAASB) Primary source

2. They also address the increased use of technology in business, financial reporting, and auditing.

   Supports: Proposals address increased use of technology

   Guide 1, Common Conceptual Foundation is anticipated in November, subject to approval at our October 28, 2026 mid-quarter meeting.

   Supports: First guide in the non-authoritative AI-enabled tools quality-management series expected in November, subject to October 28 approval

   IAASB eNews October 2026 (October 5, 2026) International Auditing and Assurance Standards Board (IAASB) Primary source

3. If information intended to be used as audit evidence is information produced by the entity, in complying with the requirement in paragraph 11, the auditor shall evaluate, to the extent necessary, the accuracy and completeness of the information

   Supports: Proposed requirement, paragraph 12

   Outputs generated by the entity's information system that has processed or incorporated external information. Examples: Trial balances, subledgers or listings of transactions. System-generated reports, custom reports from report writers

   Supports: Information produced by the entity includes system outputs; system-generated reports as examples

   Budgets, forecasts and minutes of meetings. Reconciliations and marketing information

   Supports: Reconciliations listed among examples

   Placing undue weight or reliance on output from automated systems or information in digital format without performing appropriate audit procedures (automation bias).

   Supports: Automation bias named as an example of bias

   In paragraph 12, retaining an equivalent approach from extant with respect to information produced by the entity to evaluate, to the extent necessary, the accuracy and completeness of the information

   Supports: IAASB describes the requirement as retaining an equivalent approach

   For information produced by the entity, the attributes of accuracy and completeness are presumed to be of significance.

   Supports: Accuracy and completeness presumed to be of significance

   Exposure Draft, Proposed ISA 500 (Revised), Audit Evidence International Auditing and Assurance Standards Board (IAASB) Primary source

4. The IAASB anticipates that the final pronouncements for ISA 330 (Revised), ISA 500 (Revised) and ISA 520 (Revised) could be approved in December 2027 based on current expectations

   Supports: Anticipated approval December 2027

   The Board is of the view that it is appropriate for the standards to be effective for audits of financial statements for periods beginning at least 18 months after the approval of the final pronouncements.

   Supports: Effective at least 18 months after approval

   It does not constitute an authoritative pronouncement of the IAASB, nor does it amend, extend or override the International Standards on Auditing (ISAs)

   Supports: Exposure draft is not authoritative

   Exposure Draft for the Audit Evidence and Risk Response Project Overall, Explanatory Memorandum International Auditing and Assurance Standards Board (IAASB) Primary source