Auditor Responsibilities
Relating to Fraud

A proposed international auditing standard aims to put a spotlight on fraud-related matters and improve communication between the auditor, governance and users of audit reports.

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Management, governance and auditors all play an important role in detecting and preventing fraud. In response to recent corporate failures around the globe, the International Auditing and Assurance Standards Board have issued a proposed revised standard dealing with the auditor’s responsibilities related to fraud in an audit of financial statements.

The proposed revisions strengthen the existing standard by:

  • clearly defining the auditor’s role
  • describing more robust procedures, and
  • enhancing communication in the auditor’s report.

Exposure draft

Proposed ISA 240 (Revised) explanatory memorandum and exposure draft

We are keen to hear your views on the proposals to inform our submission to the IAASB and to inform our adoption of the international standard once finalised.

We would like to know whether the proposals:

  • address the auditor’s responsibilities related to fraud in the financial statement audit?
  • enhance transparency about fraud-related matters in the auditor’s report?

How to provide feedback

We will be holding a virtual feedback forum on 13 March (sign up here). Comments can also be sent vis email to

We would appreciate any comments to incorporate into our response by 15  May 2024

We intend on publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 2020 also applies.