ICAI Issues ISAS 2026 Compendium for Digital Audit Framework

1. Introduction

The Compendium of Information Systems Audit Standards (ISAS), 2026 issued by the Institute of Chartered Accountants of India (ICAI) marks a significant advancement in the domain of assurance, reflecting the growing importance of technology in business environments. In today’s digital economy, organisations increasingly depend on complex information systems for financial reporting, governance, operations, and regulatory compliance. This shift has amplified risks related to cybersecurity, data protection, and system integrity, thereby necessitating a structured and reliable framework for auditing such systems.

The ISAS has been developed by the Digital Accounting and Assurance Board (DAAB) of ICAI to address this need and to provide a consistent, high-quality approach to Information Systems (IS) audits. The compendium issued by DAAB discusses about all of the ISAS.

2. Objective and Applicability of ISAS

The primary objective of ISAS is to establish minimum standards for professionals undertaking IS audit engagements while also setting clear expectations for users, regulators, and other stakeholders regarding the quality and scope of such audits.

The standards aim to enable independent assurance on the adequacy and effectiveness of information systems, controls, and processes that support business and financial operations. They are designed to be applicable across industries and organisational sizes, ensuring broad relevance in a rapidly evolving technological landscape. Initially, the standards are recommendatory, with the possibility of becoming mandatory in a phased manner.

3. Framework Governing ISAS

A key strength of the ISAS lies in its structured framework, which provides a comprehensive foundation for conducting IS audits. This framework is built on four interrelated components: Basic Principles, Key Concepts, the Standards themselves, and supporting Guidance.

These components operate together under the overarching requirement of adherence to the ICAI Code of Ethics, ensuring that all audit engagements are conducted with integrity, objectivity, and professional competence. The framework promotes a risk-based and systematic approach, enabling consistency and discipline in audit execution while allowing flexibility to adapt to different engagement scenarios.

4. Key Concepts underpinning IS Audits

In addition to the principles, ISAS introduces key concepts that are fundamental to understanding and performing IS audits. These include Information Systems Governance, which ensures alignment between technology and business objectives; Information Systems Risk Management, which focuses on identifying and mitigating technology-related risks; and Information Systems Controls, which safeguard the confidentiality, integrity, and availability of data and systems.

The standards also recognise the importance of compliance with applicable IT laws and regulations and clarify the different types of assurance engagements, such as reasonable assurance, limited assurance, and non-assurance services, depending on the nature and scope of the audit.

5. Structure and Coverage of the Standards

The standards themselves are organised in a systematic manner, covering the entire lifecycle of an IS audit. They address areas such as engagement planning, execution, evaluation of controls, use of automated tools, cybersecurity audits, data protection compliance, reporting, and quality management.

Each standard follows a consistent format that includes its objective, requirements, explanatory guidance, and documentation expectations. This uniform structure enhances clarity and usability for professionals, ensuring that engagements are conducted in a structured and comprehensive manner.

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