Key Updates to the Assurance 2025 Syllabus

Chapter 1: Concept of and Need for Assurance

The Financial Reporting Council (FRC) remains the primary regulator of the accountancy profession, with plans to replace it with the Audit, Reporting and Governance Authority (ARGA) delayed. The FRC continues to issue auditing standards and ethical guidelines.

Technological advancements have introduced the concept of automation bias, which auditors must be aware of when reviewing outputs from automated systems. This bias refers to the tendency to favour suggestions from automated systems over contradictory manual information.

A new section on Sustainability and Assurance has been added, highlighting the increasing importance of Environmental, Social, and Governance (ESG) risks in investment decisions. The concept of double materiality is introduced, addressing both the impact and dependencies of sustainability.

Chapter 3: Process of Assurance: Planning the Assignment

Climate-related risks are now considered undiversifiable and must be factored into materiality determinations. The International Sustainability Standards Board (ISSB) IFRS Sustainability Disclosure Standards provide a new definition of materiality that encompasses sustainability-related risks and opportunities.

The concept of double materiality is further explored, involving the assessment of both financial risks created by sustainability issues and the impact of an organisation's activities on people and the environment.

Regarding going concern, auditors are now required to consider the risk of management bias in going concern assessments and evaluate whether management has remained neutral in preparing financial information.

Chapter 5: Introduction to Internal Control and Information Flows

The Workbook now includes a detailed section on technological advances, covering topics such as Robotic Process Automation (RPA), Artificial Intelligence (AI), cloud computing, and digital signatures. These technologies are increasingly important in financial reporting processes and present new risks and considerations for auditors.

Cybersecurity risks are highlighted as a significant concern, with generative AI posing particular threats. The World Economic Forum ranks cyber insecurity as the fourth greatest global risk. Auditors must understand and evaluate these emerging technologies when assessing risks and related controls in client organisations.

Chapter 13: Substantive Procedures – Key Financial Statement Figures

The revised ISA (UK) 505 now prohibits the use of negative confirmations in audits conducted under ISAs (UK). The standard also provides guidance on digital confirmations, reflecting the increasing use of specialist software and electronic methods in the confirmation process.

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To download our free PDF summary of the main syllabus changes, click the link below.