Proposed changes to Institute Audit Regulations, UK

The Institute is currently considering amendments to the Audit Regulations UK.  The proposed amendments would align the Audit Regulations UK more closely with the Institute’s Audit Regulations, Ireland.    The key changes proposed can be summarised as follows:

• A new requirement for audit-registered sole practices (both individual sole practitioners and single-director corporate practices) to put in place alternate arrangements which would take effect in the event of the death or incapacity of the sole practitioner.
• Additional material to clarify the obligations of audit firms and responsible individuals (RIs) in relation to continuing professional development requirements (CPD).
• The ability for the Quality Assurance Committee to impose regulatory penalties on RIs.

It is anticipated that the revised Audit Regulations UK would become effective from 1 January 2024 (pending necessary approvals) with a proposed transition period of six months thereafter for compliance with the requirement for audit-registered sole practices (to put in place alternate arrangements).

The Audit Regulations UK set out the Institute’s rules for the authorisation and supervision of statutory audit firms and RIs in the UK.  The Audit Regulations UK are issued jointly by Chartered Accountants Ireland (the Institute), the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS).