What regulatory changes should an auditor pay attention to during their review?

Focusing on major changes in the regulatory landscape is essential for auditors because these changes can significantly impact compliance, operational practices, and financial reporting for the organization under review. Auditors must be aware of new laws, amendments, and guidelines that regulators introduce, as these aspects dictate how organizations need to adapt their internal controls, risk management, and financial disclosures.

Understanding the regulatory environment helps auditors assess potential risks that an organization faces and ensures that their audit procedures align with the most current standards and requirements. Staying informed about significant regulatory updates is crucial for maintaining the integrity of the audit process and providing stakeholders with an accurate evaluation of the organization's adherence to applicable laws and regulations.