IRBA Adopts Narrow-Scope Amendments to ISQMs, ISAs, and ISRE 2400

Posted 10 March 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The Independent Regulatory Board for Auditors (IRBA) Board has approved the adoption of narrow-scope amendments to the International Standards on Quality Management (ISQMs), International Standards on Auditing (ISAs), and International Standard on Review Engagements (ISRE) 2400 (Revised).

In terms of the Auditing Profession Act, No. 26 of 2005, these amendments align auditing and review standards with the updated International Ethics Standards Board for Accountants (IESBA) definitions of ‘listed entity’ and ‘public interest entity’ (PIE). The narrow-scope amendments, originally issued by the International Auditing and Assurance Standards Board (IAASB) in August 2025, revise definitions across all affected standards to ensure consistency with the IRBA Code of Professional Conduct for Registered Auditors.

The revisions include specific requirements for practitioners to publicly disclose when independence requirements applicable to audits or reviews of financial statements of certain entities have been applied. This is consistent with the local adaptations to the IRBA Code, which includes South African enhancements to the PIE definition published in November 2023. These local adaptations are reflected in the IRBA Code as underlined and italicised text.

Key Regulatory Changes

  • Alignment of the ‘listed entity’ definition across ISQMs and ISAs with the IESBA Code.
  • Amendments to ISRE 2400 (Revised) regarding the disclosure of independence requirements in review reports.
  • Mandatory disclosure in the practitioner’s report when PIE-specific independence standards are applied.
  • The amendments are effective for audits and reviews of financial statements for periods beginning on or after 15 December 2026.

Click here to download the IRBA Communiqué or access the final IAASB pronouncement.

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

  • For yourself: Registered Auditors must familiarise themselves with the expanded PIE definitions to ensure that independence disclosures in audit and review reports comply with the revised standards by the 2026 effective date.
  • For your business: Audit firms must update their internal quality management systems under ISQM 1 and ISQM 2 to incorporate the revised definitions and ensure engagement teams correctly identify and categorise PIE clients.
  • For your clients: Entities that fall under the expanded definition of a ‘public interest entity’ will be subject to more rigorous independence requirements from their auditors, which will now be explicitly disclosed in the audit or review report.

Originally published at https://accountingacademy.co.za/news/read/irba-adopts-narrow-scope-amendments-to-the-isqms-isas-and-isre-2400-revised-as-a-result-of-the-revisions-to-the-definitions-of-listed-entity-and-pie-in-the-iesba-code

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.