IDW PS 860

With the auditing standard IDW PS 860 ‘IT audits outside the audit of financial statements’, the Institute of Public Auditors in Germany (IDW) provides a framework for the assessment of IT systems and processes that goes beyond the boundaries of the regular audit of financial statements. The auditing standard provides detailed specifications for auditing IT-supported processes about conformity, security, risk management and compliance with regulations outside of financial reporting.

This standard is accompanied by high criteria for audit quality, which improves clear guidelines about transparency and the verifiability of audit results for external bodies. This is the IDW's response to the increasing need for management levels to obtain an independent evaluation or assessment of IT systems, particularly in view of the increasing threats and strong dependence on these IT systems.

In addition to the IDW PS 860 auditing standard, further audit instructions have been developed that concretise specific instructions regarding the audit of individual IT-supported processes and procedures, such as

Audit of compliance with the GoBD (IDW PS 860 / IDW PH 9.860.4)
Audit of operators of critical infrastructures, IT Security Act, KRITIS (IDW PS 860 / IDW PH 9.860.2)
The audit of cloud services (IDW PS 860 / IDW PH 9.860.3 n.F.)
Audit of data protection management systems (IDW PH 9.860.1)

In addition to the audit instructions, the IDW PS 860 auditing standard can be applied to other subject areas so that it can be tailored and individualized to a wide range of issues.

Auditing standard IDW PS 860 explicitly differentiates between an evaluation of the appropriateness and an examination of the effectiveness of the internal control system. When evaluating the appropriateness, the focus is on assessing the control structure and the implementation of the control mechanisms, whereas the effectiveness test assesses the actual operational functionality of the controls over a specific time frame.

AS AUDITORS AND TAX CONSULTANTS, WE KNOW THE LEGAL REQUIREMENTS

As part of the audit, we record the status and check it for compliance with the legal requirements and the requirements of the GoBD. The IDW is developing a catalogue of requirements for auditing GoBD compliance based on the GoBD. Based on our experience in comparable projects, we can provide you with pragmatic recommendations for legally compliant implementation.

We will be happy to confirm conformity with the legal requirements as part of the reporting process.

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