In December 2024, the International Ethics Standards Board for Accountants (IESBA) approved new provisions in the IESBA Code related to its Using the Work of an External Expert project. The new section of the IESBA Code provides an ethical framework to guide practitioners in evaluating whether an external expert has the necessary competence, capabilities, and objectivity for their work to be used. The new provisions are effective as of December 15, 2026.
Consequently, in March 2025, the International Auditing and Assurance Standards Board (IAASB) approved a narrow-scope revisions project to revise International Standard on Auditing (ISA) 620, Using the Work of an Auditor’s Expert, and other standards to ensure continuing interoperability between the IAASB and IESBA standards related to using the work of an external expert.
The AASB proposes, subject to comments received following exposure, to adopt the IAASB’s proposed narrow-scope revisions without Canadian amendments. The AASB also proposes to make narrow-scope revisions to certain other Canadian standards.