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

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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

• 10 March 2026
• Auditing and Assurance
• South African Accounting Academy

Summary:
The Independent Regulatory Board for Auditors’ (IRBA) Board has approved IAASB’s narrow scope amendments to align auditing and review standards with the updated IESBA definitions of listed and public interest entities. The changes update definitions and require disclosure when specific independence requirements apply, consistent with the locally adapted IRBA Code. 

Article:

The narrow-scope amendments (issued by the IAASB in August 2025) to the ISQMs and ISAs revise the definition of a listed entity in all the affected standards to align with the revised definition in the IESBA Code. In relation to ISRE 2400 (Revised), the amendments align the standard with the IESBA Code with respect to the requirement to publicly disclose when the independence requirements applicable to independent reviews of financial statements of certain entities have been applied. These revised definitions, together with the related public disclosure requirements in the practitioner’s review report where independence requirements specific to reviews of financial statements of certain entities have been applied are consistent with those adopted locally in the IRBA Code of Professional Conduct for Registered Auditors.

The IRBA adopted the IESBA Code, published in 2018, together with South African enhancements. Since then, the IRBA tracks changes to the IESBA Code and the IRBA Code has been updated for those developments, following a local due process and adoption by the IRBA Board. Local adaptations of the IESBA Code are reflected in the IRBA Code as underlined and in italics.

The IRBA Code includes local amendments to the definition of public interest entity. The IRBA published revisions to the definitions of listed entity and public interest entity in November 2023.

The narrow-scope amendments are effective for audits (and reviews) of financial statements for periods beginning on or after 15 December 2026.

Access the final IAASB pronouncement at https://ifacweb.blob.core.windows.net/publicfiles/2025-08/IAASB-Narrow-Scope-Amendments-PIE-PTE-Listed-Entity.pdf 

Click here to download the IRBA Communiqué document:

https://www.irba.co.za/upload/report_files/11.-PIE-Track-2-Communique.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you need to comply with International Standards on Auditing and other Assurance Services (like ISQMs, ISAs, ISREs), and thus you need knowledge of newly revised standards that are approved as well as when they become effective.
• Failure to adhere to ISAs and ISSA may be interpreted as negligence and you could be held liable.
• Auditors, Independent Reviewers and Accountants should be aware of the latest standards that have been approved by standard-setting boards like the IAASB, when these are published, and when these standards are adopted by IRBA and become effective in South Africa.

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