IAASB and IESBA Release 2025 Joint Annual Report on Audit and Ethics Standards

Posted 16 September 2026 Written by Acts Online
Category Auditing & Assurance

Brought to you by SA Accounting Academy: The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) have published their 2025 Joint Annual Report, titled Building Trust Through Dialogue, Leadership, and Standards, outlining regulatory priorities directly shaping standards adopted under the Auditing Profession Act, No. 26 of 2005.

Under the statutory framework administered by the Independent Regulatory Board for Auditors (IRBA), South Africa directly adopts IAASB auditing pronouncements and converges local ethical requirements with the IESBA Code of Ethics. The 2025 report outlines joint technical and standard-setting work streams affecting registered auditors, audit practices, and professional accountants in public practice.

Key Regulatory Focus Areas

During 2025, both Boards focused on advancing standards and implementation support across critical audit and assurance areas, including:

  • Technology and Quality Management: Ongoing review of audit evidence mechanisms and supervisory implementation under ISQM 1 and ISQM 2.
  • Fraud and Going Concern: Progressing targeted revisions to heighten auditor responsibilities regarding fraud detection (ISA 240) and going concern evaluations (ISA 570).
  • Private Equity and Firm Governance: Addressing independence, ethical, and governance challenges arising from private equity investment models within accounting and audit firms.
  • Sustainability Assurance and Ethics: Supporting global implementation of the International Standard on Sustainability Assurance 5000 (ISSA 5000) alongside ethics and independence benchmarks for sustainability reporting and assurance providers.

The report also records coordinated strategic planning and joint implementation support initiatives designed to align technical requirements between assurance standards and ethical codes across international jurisdictions.

Click here to download the IAASB & IESBA 2025 Joint Annual Report.

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

  • For yourself: Registered auditors and assurance practitioners must align professional development with impending changes to standard requirements for ISA 240 (fraud) and ISA 570 (going concern), as well as ethical rules governing non-assurance services.
  • For your business: Audit firms must evaluate their quality management systems under ISQM 1 to ensure that emerging risks—such as external private equity capital, firm culture, and technology integration—do not compromise audit independence or regulatory compliance with IRBA rules.
  • For your clients: Corporate clients preparing for ESG disclosures must anticipate rigorous independent assurance protocols under ISSA 5000, requiring upgraded internal controls and auditable sustainability data systems.

Originally published at https://accountingacademy.co.za/news/read/iaasb-iesba-2025-annual-report

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