Proposed Revisions to ISA (UK) 240 and ISA (UK) 570
Published: 1 October 2025
Response deadline: 16 January 2026
| Title | ISA (UK) 240 and ISA (UK) 570 Consultation on Proposed Revisions |
|---|---|
| Format | pdf, 385.6 KB |
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Overview
The FRC is consulting on proposed revisions to two key auditing standards, dealing with the auditor’s responsibilities relating to fraud and going concern:
- ISA (UK) 240 (Revised) The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements
- ISA (UK) 570 (Revised) Going Concern
The FRC is updating these standards to align with recent revisions to equivalent international standards issued by the International Audit and Assurance Standards Board (IAASB). This alignment is central to maintain equivalence between UK and international auditing standards and preserve the UK's position in global financial markets.
The IAASB's revisions to ISA 240 clarify auditors' responsibilities regarding fraud detection, strengthen risk assessment procedures, and enhance transparency in audit reports—particularly for publicly traded entities. Meanwhile, updates to ISA 570 improve how auditors evaluate whether companies can continue operating, following corporate failures that have damaged public confidence in auditing.
These changes respond directly to stakeholder expectations for more rigorous oversight and clearer reporting about company viability and fraud risks.
As the UK standards have been previously updated, current requirements already reflect most of these changes. The FRC anticipates minimal additional work for auditors beyond what may be required by the international standard revisions themselves.
The FRC has retained specific UK requirements and guidance that reflect the distinctive legal and regulatory context here. These provisions are already included in the current versions of both standards, ensuring continuity for UK businesses and auditors.
When finalised, both standards will take effect for audits of financial statements for periods beginning on or after 15 December 2026, providing sufficient time for preparation.
| Name | Proposed ISA (UK) 240 |
|---|---|
| Publication date | 1 October 2025 |
| Type | Consultation paper |
| Format | PDF, 1.1 MB |
| Name | Proposed ISA (UK) 570 |
| Publication date | 1 October 2025 |
| Type | Consultation paper |
| Format | PDF, 1.2 MB |
April 2026 update
On 30 April 2026, the FRC published a feedback paper and impact assessment to accompany the March 2026 revised standards.
| Name | Feedback Statement and Impact Assessment - ISA (UK) 240 The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements and ISA (UK) 570 Going Concern |
|---|---|
| Publication date | 30 April 2026 |
| Type | Feedback paper |
| Format | PDF, 290.2 KB. View HTML version |
| Name | ISA (UK) 240 (Revised March 2026) |
| Publication date | 30 April 2026 |
| Type | Standard |
| Format | PDF, 1.5 MB |
| Name | ISA (UK) 570 (Revised March 2026) |
| Publication date | 30 April 2026 |
| Type | Standard |
| Format | PDF, 1.4 MB |