IRBA Adopts IAASB 2025 Handbook with Key Exclusions

Posted 02 July 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The Independent Regulatory Board for Auditors (IRBA) has resolved to adopt, issue, and prescribe the International Auditing and Assurance Standards Board’s (IAASB) 2025 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, subject to a significant local exclusion.

In terms of its statutory mandate under the Auditing Profession Act, No. 26 of 2005, the IRBA has formally adopted the 2025 edition of the IAASB Handbook to govern auditing and assurance practices in South Africa. However, the regulator has explicitly determined that Volume 2 of the 2025 Edition, which contains the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), has not been adopted, issued, or prescribed for use within the Republic of South Africa.

Consequently, registered auditors in South Africa are not permitted to apply the simplified ISA for LCE framework to local audit engagements, and must continue to apply the full suite of International Standards on Auditing (ISAs) as prescribed by the IRBA.

Registered auditors can access the official IRBA Communiqué directly via the IRBA Communiqué PDF, and download the approved volumes of the publication from the IRBA 2025 Handbook Portal.

What this means for you, your business, or your clients

  • For yourself: You must update your professional knowledge base to align with the newly prescribed 2025 IAASB standards, ensuring that you do not apply the unadopted ISA for LCE (Volume 2) in any South African audit engagements.
  • For your business: Audit firms must update their internal quality management systems, audit methodologies, and training programs to reflect the 2025 IAASB Handbook standards, while explicitly omitting the ISA for LCE from their methodology templates.
  • For your clients: Clients, particularly less complex entities, must be advised that they remain subject to the full suite of International Standards on Auditing (ISAs) as adopted by the IRBA, as the simplified ISA for LCE framework is not legally recognized in South Africa.

Originally published at https://accountingacademy.co.za/news/read/irba-adoption-of-the-iaasb-s-2025-handbook

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