The main changes to ISA 240 will clarify the role of the auditor in identifying fraud in the course of an audit and a renewed emphasis on professional scepticism to ensure auditors remain alert to possible fraud. 

Recent corporate failures have underscored the importance of clarifying and enhancing the role of auditors in responding to fraud and suspected fraud as a means of enhancing public trust in financial reporting.

The IAASB stressed that 'professional scepticism needs to be reinforced, including reminding the auditor of the importance of remaining alert to conditions that may indicate possible fraud and maintaining professional scepticism throughout the audit'.