IAASB:
Narrow Scope Amendments to the ISQMs, ISAs and ISRE 2400 (Revised)

On September 1, 2025, immediately after their approval by the Public Interest Oversight Board (PI-OB), the International Auditing and Assurance Board (IAASB) published narrow scope amendments to ISQMs, ISAs, and ISRE 2400 (Revised). The amendments are a consequence of the revision of the definitions of “publicly traded entity” and public interest entities in the IESBA Code of Ethics. The WPK had commented on this (“New on WPK.de” from 27 March 2025).

Areas affected by changes

• Incorporation of the definition of “publicly traded entity” (PTE) adopted in the IESBA Code of Ethics into the ISQMs and certain ISAs, taking into account the responsibility of local standard setters and regulatory authorities in defining PTEs for their jurisdictions.
• Inclusion of an overarching objective for differentiated requirements in the ISQMs and ISAs with regard to PTEs and a framework for the appropriateness of applying such requirements to other entities.
• Amend the applicability of existing requirements for audits of listed entities to audits of publicly traded entities.
• Inclusion of a new requirement in ISRE 2400 (Revised) for disclosure in the auditor's report if the auditor applies independence requirements that are specific to the audit of financial statements of certain entities, such as public interest entities.

Application

The narrow scope amendments are applicable to audits or reviews of financial statements for peri-ods beginning on or after 15 December 2026. Thus, for calendar fiscal years, the amendments will first affect audits of annual and consolidated financial statements as of 31 December 2027.