Audit Hub
General audit and accounting standards updates for Abacus member firms — auditing standards, quality management, ethics and independence, and regulatory oversight across every jurisdiction we monitor.
United States — PCAOB QC 1000: new firm quality control system in force
What changed: PCAOB QC 1000, "A Firm's System of Quality Control," took effect on 15 December 2025, replacing the legacy quality control standards for firms registered with the PCAOB. It requires a risk-based quality control system with defined roles, monitoring and remediation, and — for firms auditing more than 100 issuers — an external quality control function and annual reporting on Form QC.
Implications for firms: PCAOB-registered firms, including non-US firms auditing US issuers or participating in those audits, must operate the new QC system now and prepare for the first annual evaluation and reporting cycle. Alignment work with ISQM 1 reduces duplication for firms subject to both.
Who is affected: All PCAOB-registered firms; heaviest obligations on annually inspected firms and firms auditing over 100 issuers.
⚡ Recommended action: Confirm the firm's QC 1000 system is operating and calendar the first annual evaluation and Form QC reporting
Global — ISA 570 (Revised 2024): going concern requirements strengthened
What changed: The IAASB's revised going concern standard, ISA 570 (Revised 2024), strengthens risk assessment and evaluation of management's going concern assessment, extends the period of evaluation, and enhances transparency in the auditor's report about going concern work, including a new section for listed-entity audits.
Implications for firms: Engagement teams will need earlier and more rigorous going concern procedures and clearer documentation of the evaluation period. Reporting changes affect the structure of auditor's reports and may prompt more client conversations about disclosure quality.
Who is affected: All ISA audits; enhanced reporting applies to audits of listed entities.
⚡ Recommended action: Refresh going concern work programs and report templates before the effective date
Global — ISA 240 (Revised): strengthened fraud responsibilities in the audit
What changed: The IAASB issued ISA 240 (Revised), significantly strengthening the auditor's responsibilities relating to fraud. The revised standard clarifies expectations for professional skepticism, expands risk identification and response requirements, requires more robust engagement-team discussion of fraud risks, and introduces enhanced transparency about fraud-related work in the auditor's report for listed entities.
Implications for firms: Firms performing audits under the ISAs need to update methodologies, training, and engagement templates ahead of the effective date. Fraud-related documentation expectations increase across all audits, and auditor's reports for listed entities will describe how the audit addressed fraud risks.
Who is affected: All firms performing ISA audits; the greatest reporting impact falls on audits of listed entities.
⚡ Recommended action: Update audit methodology and templates for ISA 240 (Revised) and plan staff training before FY2027 engagements