Why these changes matter for trainees
The Independent Regulatory Board for Auditors has adopted a series of new and revised standards that take effect for audits of financial statements for periods beginning on or after 15 December 2026. These are not minor updates. They change how auditors assess going concern, how they respond to fraud risk, and how they report their findings.
If you are in a SAICA training contract, these standards will apply to the audits you participate in during your articles and beyond. Understanding them now gives you a head start when you begin performing audit procedures under the new framework.
This article explains the key changes, what they mean in practice, and how to prepare.
The three major standard changes
ISA 570 (Revised 2024): Going Concern
The revised going concern standard is the most significant change for audit practice. It strengthens the auditor’s responsibilities when management uses the going concern basis of accounting and introduces new reporting requirements.
What changes:
- The auditor must evaluate whether management’s use of the going concern basis of accounting is appropriate in the preparation of the financial statements
- The auditor must evaluate whether there is material uncertainty related to going concern events or conditions
- New emphasis on the auditor’s responsibilities when management’s going concern evaluation is inconsistent with the auditor’s assessment
- Updated reporting requirements: the auditor’s report must include a clear reference to the going concern section when material uncertainty exists
- Introduction of an Emphasis of Matter paragraph or a Material Uncertainty Related to Going Concern section, depending on the circumstances
In practice, this means more structured documentation of going concern assessment procedures and clearer communication with those charged with governance about going concern conclusions.
ISA 240 (Revised): Fraud in an Audit of Financial Statements
The revised fraud standard responds to well-publicised audit failures and strengthens the auditor’s responsibility for detecting material misstatements due to fraud.
What changes:
- Enhanced requirements for professional scepticism throughout the audit
- Revised requirements for evaluating the risk of material misstatement due to fraud, including consideration of how fraud may be concealed
- Updated requirements for responding to assessed fraud risks, including the design and implementation of further audit procedures
- New requirements for communications with those charged with governance about fraud
- Clarified requirements for evaluating misstatements to determine whether they may be indicative of fraud
The standard emphasises that audit procedures that are effective for detecting errors may not be effective for detecting fraud. Auditors must think about how fraud could be concealed, not just whether it has occurred.
Narrow-scope amendments to ISQMs, ISAs, and ISRE 2400
The IRBA also adopted narrow-scope amendments arising from the IESBA’s Using the Work of an External Expert project. These amendments affect:
- International Standards on Quality Management (ISQMs): Updated requirements for firms when using the work of an external expert in quality management
- ISAs: Clarified requirements for auditors when using the work of an expert in an audit engagement
- ISRE 2400 (Revised): Updated requirements for independent reviews when using the work of an expert
These amendments are smaller in scope but important for audit firms that engage specialists, which is common in audits of companies with complex valuations, actuarial calculations, or IT systems.
The updated SAAPS 3: Illustrative Reports
The IRBA published an Exposure Draft of the proposed SAAPS 3 (Revised XXX 2026) in June 2026, with comments due by 7 August 2026. The final version is expected to be approved in November 2026.
SAAPS 3 provides practical guidance to registered auditors on the content and format of auditor’s reports in South Africa. The proposed revision contains 32 illustrative reports covering both audits and independent reviews.
Key changes in the illustrative reports:
- Updated templates to reflect the new going concern reporting requirements under ISA 570 (Revised 2024)
- Updated templates to reflect the revised fraud reporting under ISA 240 (Revised)
- Introduction of Appendix 1(b) explaining the interaction between the IRBA’s Enhanced Auditor Reporting Rule and the going concern reporting requirements
- An additional illustrative report for companies applying IFRS 19 (Subsidiaries without Public Accountability: Disclosures)
- Editorial improvements updating references to the latest standards
For trainees, the illustrative reports are the practical bridge between the standards and the audit report you help prepare. Familiarising yourself with the new templates prepares you for what the final report should look like.
Sustainability assurance: ISSA 5000 and the IRBA Code
In February 2026, the IRBA adopted ethics standards for sustainability assurance, including independence standards, through Board Notice 911 of 2026. These standards introduce a new Part 5 to the IRBA Code of Professional Conduct, establishing a framework of ethics and independence requirements for sustainability assurance engagements.
The standards are designed to be equivalent to Part 4A of the IRBA Code (which applies to financial statement audits) and apply the same high ethical and independence principles.
ISSA 5000, General Requirements for Sustainability Assurance Engagements, has been adopted but is not yet effective. It is included in the 2025 Handbook Volume III. When it becomes effective, registered auditors in South Africa will be able to perform sustainability assurance engagements under a recognised framework.
For trainees, this is a career-shaping development. Sustainability assurance is a growing field, and the IRBA’s adoption of these standards means South African auditors will be at the forefront of this expanding area of practice.
The Enhanced Auditor Reporting Rule
The IRBA’s Enhanced Auditor Reporting Rule is already in effect for audits of Public Interest Entities. The rule requires enhanced content in the auditor’s report, including:
- Key Audit Matters (KAMs): Disclosure of the matters that, in the auditor’s professional judgment, were of most significance in the audit
- Enhanced description of the auditor’s responsibilities
- Enhanced description of the scope and objective of the audit
The proposed SAAPS 3 (Revised) includes Appendix 1(b), which explains how the Enhanced Auditor Reporting Rule interacts with the new going concern reporting requirements. This is important for PIE audits where both the rule and the revised standard apply.
IAASB proposals on the horizon
The International Auditing and Assurance Standards Board has also issued for public consultation proposed revisions to three core ISAs: ISA 330, ISA 500, and ISA 520. These proposals aim to modernise the risk-based audit framework and address automated tools and technological advances.
Key elements of the proposed revisions:
- Technology-neutral principles for deploying automated tools and data analytics
- Clarified requirements for designing and executing tests of controls, substantive procedures, and substantive analytical procedures
- Standardised concepts connecting risk assessment, risk response, and evaluation of audit evidence
These proposals are still at the exposure draft stage and have not yet been adopted by the IRBA. However, they signal the direction of audit standard-setting and the increasing role of technology in audit methodology.
What this means for SAICA training contract students
During your articles
The revised standards apply to audits for periods beginning on or after 15 December 2026. If your training office begins its audit season after that date, you will be working under the new framework from the start.
Focus areas during your articles:
- Understand the revised going concern assessment procedures and documentation requirements
- Learn the enhanced fraud risk assessment and response procedures
- Familiarise yourself with the new illustrative report formats
- Understand when and how to apply professional scepticism in the context of fraud detection
For your board exams
The SAICA board exams reflect current standards. The revised ISAs will feature in upcoming examination cycles. Key topics to master:
- Going concern: assessment procedures, management’s responsibilities, auditor’s reporting obligations
- Fraud: risk assessment, response to assessed risks, communication with those charged with governance
- Audit evidence: sufficiency and appropriateness, use of experts, automated tools
- Reporting: modified opinions, emphasis of matter, material uncertainty related to going concern
For your career
The audit profession is evolving. Sustainability assurance, technology-driven audit methodology, and enhanced reporting are reshaping what auditors do and how they do it. Understanding these trends early positions you for a career that keeps pace with the profession’s development.
The bottom line
The 2026 IRBA standards changes are the most significant updates to the auditing framework in recent years. They affect how auditors assess going concern, how they respond to fraud risk, how they use experts, and how they report their findings. For SAICA trainees, understanding these changes now is an investment in your professional development.
SC Audit is an IRBA-registered audit firm based in Bellville, Cape Town. SC Audit is a SAICA-accredited training office. SC Audit’s partners Niel Schoeman, Simone Coetzee, and Hennie Meyer support training contract students with practical experience across statutory audits, independent reviews, and assurance services. Contact SC Audit to learn more about the training programme.
Frequently Asked Questions
When do the new IRBA standards take effect?
The revised standards apply to audits of financial statements for periods beginning on or after 15 December 2026. Early adoption is permitted but requires full application of ISA 570 (Revised 2024), ISA 240 (Revised), and the narrow-scope amendments across the entire engagement.
What is the biggest change in the revised going concern standard?
ISA 570 (Revised 2024) strengthens the auditor’s responsibility for evaluating management’s use of the going concern basis of accounting and introduces new reporting requirements. When material uncertainty exists, the auditor must include a clear reference in the report, either as an Emphasis of Matter paragraph or a Material Uncertainty Related to Going Concern section.
How does the revised fraud standard affect audit procedures?
ISA 240 (Revised) enhances requirements for professional scepticism and requires auditors to consider how fraud could be concealed, not just whether it has occurred. Audit procedures effective for detecting errors may not be effective for detecting fraud, so auditors must design procedures that address fraud-specific risks.
What is sustainability assurance and why does it matter?
Sustainability assurance is the independent verification of sustainability reports and disclosures. The IRBA has adopted ISSA 5000 and ethics standards for sustainability assurance, which will allow South African auditors to perform these engagements. It is a growing field that expands the scope of audit practice.
What should SAICA trainees focus on first?
Start with the revised going concern and fraud standards, as these affect the most common audit procedures. Familiarise yourself with the new illustrative report formats in SAAPS 3. Understand the interaction between the Enhanced Auditor Reporting Rule and the new going concern requirements for PIE audits.