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Key Audit Issues and Trends in Fraud Risk Discussions

2026-06-05T13:09:09+02:00

Fraud Risk Discussions ISA 240 requires auditors to perform specific procedures as part of the normal risk assessment procedures during audit planning to obtain information relevant to identifying risks of material misstatement, due to fraud. Included in these procedures is a requirement to make enquiries of management and those charged with governance regarding fraud-related considerations. Auditors frequently include very limited evidence of these required discussions on the audit file, with only brief comments by the party interviewed and no further, or inadequate, audit considerations of whether these comments indicate the presence of potential fraud risks that demand further response. [...]

Key Audit Issues and Trends in Fraud Risk Discussions2026-06-05T13:09:09+02:00

The Brain Drain of Audit Quality

2026-06-01T15:13:52+02:00

What’s News? The Brain Drain of Audit Quality For decades, audit quality, in general, has failed to prevent audit failures. Upgraded audit standards, and stricter independence requirements have been implemented in an attempt to address the challenge. In my opinion, there are a number of environmental factors being overlooked in the formal structures that set audit standards and educational standards, causing a drain on knowledge and experience in the profession, (the so-called ‘brain drain’). I am listing a few: Computer skills In my opinion, the brain drain started when personal computers were introduced into audit. Many manual calculations, [...]

The Brain Drain of Audit Quality2026-06-01T15:13:52+02:00

Navigating the Path to Audit Excellence: An Overview of the IRBA 2025 Public Inspections Report

2026-06-05T13:16:01+02:00

Every year, the IRBA issues its Public Inspections Report to provide the profession with critical insights into topical deficiencies, and trends identified during the inspection of audit firms and engagements. The 2025 report, which was issued in March 2026, serves as a vital tool for auditors to identify gaps within their own practices and implement the remedial measures necessary to address these gaps. A risk-based inspection approach The IRBA continues to employ a risk-based approach to its inspections. The past cycle addressed inspections through three primary avenues: Theme-based inspections Firm-wide inspections The monitoring of [...]

Navigating the Path to Audit Excellence: An Overview of the IRBA 2025 Public Inspections Report2026-06-05T13:16:01+02:00

Pending Disciplinary and Finalised Investigation Matters

2026-04-29T13:27:40+02:00

LATEST UPDATE Pending Disciplinary and Finalised Investigation Matters In the latest issue of IRBA News, Issue 73, eight disciplinary matters pending disciplinary hearings and 22 finalised investigation matters were reported. Current open matters involve eight categories of improper conduct. The most common charge is failure to exercise due care and skill. Other frequent charges include insufficient appropriate audit evidence, dishonesty and integrity issues, as well as non-declaration of assurance work. Tax and accounting issues, independence, the Prevention and Combating of Corrupt Activities Act, and executor or trustee duties make up the remaining categories. In several [...]

Pending Disciplinary and Finalised Investigation Matters2026-04-29T13:27:40+02:00

Audit Issues & Trends to Consider

2026-01-29T16:35:45+02:00

Your Content Goes Here Failure to assess non-compliance under NOCLAR and report RIs It was found that auditors often do not assess non-compliance as required. This is a two-stage, escalating obligation: NOCLAR per Section 360 of the IRBA Code: Requires auditors to identify, evaluate, and respond to actual or suspected non-compliance with laws and regulations (NOCLAR). Non-compliance may have a material effect on the financial statements, or may be fundamental to the entity's business (e.g. fraud, bribery and environmental breaches). Reportable Irregularity (RI) per APA Section 45: This is a specific, more severe subset of NOCLAR. An RI is [...]

Audit Issues & Trends to Consider2026-01-29T16:35:45+02:00

Pending Disciplinary and Finalised Investigation Matters

2026-01-29T15:32:53+02:00

LATEST UPDATE Pending Disciplinary and Finalised Investigation Matters In the latest issue of IRBA News, Issue 72, six disciplinary matters pending disciplinary hearings and 20 finalised investigation matters were reported. Current open matters involve eight categories of improper conduct. The most common charge remains insufficient appropriate audit evidence. Other frequent charges include dishonesty and integrity issues, as well as failure to exercise due care and skill. In several investigation matters, among others, sufficient, appropriate audit evidence was not obtained for material balances and disclosures; material misstatements were not appropriately identified, evaluated and addressed; appropriate professional [...]

Pending Disciplinary and Finalised Investigation Matters2026-01-29T15:32:53+02:00

Anti-Fraud Collaboration Publication: The Role of the Auditor: Exercising and Maintaining Professional Scepticism

2025-11-28T14:16:44+02:00

LATEST UPDATE Anti-Fraud Collaboration Publication: The Role of the Auditor: Exercising and Maintaining Professional Scepticism This publication provides insights into practices, guides and considerations that can help external auditors exercise, and maintain their professional scepticism effectively during the audit. It discusses the auditor’s responsibilities to exercise professional scepticism as required by the Public Company Accounting Oversight Board (PCAOB) standards in the US. The publication is available on: https://antifraudcollaboration.org/rota-fraud-exercising-and-maintaining-professional-skepticism/ more LEAFQuest Advance Your Knowledge in Auditing Enroll in Our Latest Courses! Quests List [...]

Anti-Fraud Collaboration Publication: The Role of the Auditor: Exercising and Maintaining Professional Scepticism2025-11-28T14:16:44+02:00

External Auditor Assessment Tool: A Tool for Audit Committees

2025-11-26T12:27:04+02:00

LATEST UPDATE External Auditor Assessment Tool: A Tool for Audit Committees The Centre for Audit Quality (CAQ) issued a targeted assessment tool that audit committees can use to evaluate whether to retain the external auditor. The questionnaire focuses on four key areas: service quality and resources, communication effectiveness, and the auditor’s independence and objectivity. Constructive, two-way dialogue with the auditor strengthens audit quality and committee oversight. The evaluation should cover the auditor’s qualifications, firm-wide quality practices, transparency, and professional scepticism. The tool is available on: https://www.thecaq.org/external-auditor-assessment-tool-a-tool-for-audit-committees/ more LEAFQuest Advance [...]

External Auditor Assessment Tool: A Tool for Audit Committees2025-11-26T12:27:04+02:00

Auditing of Compliance with Financial Reporting Frameworks – The Presentation Assertion

2021-02-22T13:59:41+02:00

Auditing of Compliance with Financial Reporting Frameworks – the Presentation Assertion Audit regulators are reporting that financial statement disclosure deficiencies have increased substantially over the past few years. It is crucial for auditors to realise that they need to have a sound understanding of the financial reporting framework applied by the entity and perform thorough audit procedures to determine whether the financial reporting framework has been correctly applied. This does not merely require the completion of a disclosure checklist, but also the verification of recognition and measurement, in terms of the financial reporting framework and reporting responsibilities placed [...]

Auditing of Compliance with Financial Reporting Frameworks – The Presentation Assertion2021-02-22T13:59:41+02:00

Transactions that are not at arm’s length

2021-09-19T17:36:53+02:00

Transactions that are not at arm’s length Due to the prevalence of fraud over the past few years, the IRBA issued a staff audit practice alert in June 2020 to provide auditors with guidance and considerations, with respect to transactions that are not at arm’s length, and the possible audit responses to the resulting audit risks. This article provides a summary of the key aspects addressed in the IRBA staff audit practice alert and encapsulates the message in simpler terms. Please remember to also [...]

Transactions that are not at arm’s length2021-09-19T17:36:53+02:00

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