LATEST UPDATE

IRBA Adopts the International Standard on Auditing 240 (Revised)

The Independent Regulatory Board for Auditors (IRBA) announced the adoption, issue and prescription of the International Standard on Auditing (ISA) 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements (ISA 240 (Revised)), for use by registered auditors in South Africa. This follows the International Auditing and Assurance Standards Board’s (IAASB) release of ISA 240 (Revised) in July 2025.

Recent high-profile corporate failures have intensified the public scrutiny of auditors’ responsibilities relating to fraud. As a result, the IAASB undertook a comprehensive revision of ISA 240, to address the evolving public expectations and emerging fraud risk factors.

ISA 240 (Revised) and the related conforming and consequential amendments become effective for audits of financial statements for periods beginning on or after 15 December 2026.

The final pronouncement and materials that support the implementation of ISA 240 (Revised) may be downloaded from the IAASB Fraud Project Page, available on:

https://www.iaasb.org/focus-areas/fraud-going-concern-revised-standards-enhance-public-trust

For further queries, email standards@irba.co.za