The International Forum of Independent Audit Regulators submitted comments on the joint global stakeholder survey by the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants, urging the two boards to shape their next strategy around stronger coordination, principles based standards and faster responses to emerging risks. IFIAR identified three issues as most likely to influence audit quality, ethical behavior and public trust during the next strategy period: wider use of emerging technologies including artificial intelligence, alternative ownership structures in audit firms, and the need for more agile standard setting. It also asked the International Auditing and Assurance Standards Board to prioritise work on audit materiality and to complete its audit evidence and risk response project without further delay. On technology, IFIAR called for clearer expectations on the nature and sufficiency of audit evidence obtained through automated tools, timely pronouncements to support consistent application of the International Standards on Auditing in technology enabled audits, and governance or oversight mechanisms that give confidence audit tools are fit for purpose and produce reliable evidence. It said private investment and other alternative ownership models, including private equity in audit firms, raise risks for firm culture, governance, independence and objectivity and should be addressed jointly by both boards. To improve agility, IFIAR favoured targeted clarification projects, timely guidance, continued attention to scalability for smaller and less complex firms, and post implementation reviews, while also flagging digital assets, technology enabled financial crime, sustainability assurance and the growing use of non professional specialists as further areas to monitor.
Canadian Public Accountability Board2026-05-29
International Forum of Independent Audit Regulators urges IAASB and IESBA to prioritise technology risks alternative ownership and audit materiality
The International Forum of Independent Audit Regulators urged the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants to base their next strategy on stronger coordination, principles-based standards and more agile responses to emerging risks, highlighting technology, alternative audit firm ownership structures and agile standard setting as key drivers of audit quality, ethics and public trust. IFIAR also called on the IAASB to prioritise audit materiality, complete its audit evidence and risk response project, clarify expectations for technology-enabled audits, and address risks from private investment in audit firms, while monitoring digital assets, technology-enabled financial crime, sustainability assurance and the use of non-professional specialists.