Revisions to International Standards on Auditing (UK)

Jul 20, 2017

The Financial Reporting Council (FRC) has issued a revision of ISA (UK) 250 Section A-Consideration of laws and regulations in an audit of financial statements, and conforming amendments to other ISAs (UK), effective for audits of financial statements for periods commencing on or after 15 December 2017. The FRC notes that the revisions, which are limited in scope, reflect changes made to the International Code of Ethics issued by the International Ethics Standards Board for Accountants (IESBA), and that these changes provide a framework to support reporting by accountants where they identify non-compliance with laws or regulations in the course of their work.

The FRC has also issued revised ISA (UK) 330 The Auditor’s Responses to Assessed Risks, with conforming amendments to ISA (UK) 505 External Confirmations, also effective for audits of financial statements for periods commencing on or after 15 December 2017. The FRC note that the revisions have the effect of streamlining and integrating the guidance relating to obtaining bank reports for audit purposes into the auditing standards. Consequently, the FRC has withdrawn Practice Note 16 Bank reports for audit purposes in the United Kingdom from the date the revised standard is effective from. The FRC note that templates for requesting bank reports will remain available for use on the British Bankers’ Association website (now UK Finance), where an auditor wishes to obtain such a report.

Read the full press release and access the revised standards and the standards with conforming amendments on the FRC website at the following link: - - http://www.frc.org.uk/News-and-Events/FRC-Press/Press/2017/July/Revisions-to-International-Standards-on-Auditing-(.aspx