Response to FRC consultation on Auditing and Ethical Standards

Oct 02, 2019

Chartered Accountants Ireland has responded to the FRC Feedback Statement and impact assessment relating to its review of 2016 Auditing and Ethical Standards

In our response to the FRC we highlighted our primary concerns about the proposed updates to the standards. 

We consider that it is essential that the FRC allow sufficient time for the 2016 standards to be fully embedded and for full consideration to be made of the overall impact of proposed further changes deriving from the reviews undertaken by Sir John Kingman and the Competition and Markets Authority, and the ongoing work being undertaken by Sir Donald Brydon in relation to the quality and effectiveness of audit.

In our opinion, introducing an intermediate set of changes to standards prior to completion of that full consideration poses significant risk, given that it places auditors in a position of having to make changes on a piecemeal basis, in the knowledge that further changes will be required in response to those three reviews.  

We also have significant reservations about certain aspects of the proposed changes to the Ethical Standard and the proposed extra territorial application of UK rules.

On a similar note we have concerns about any divergence of FRC standards from the International standards given the number of groups with companies based in the UK, Europe and elsewhere.  

In February 2019 we responded to the previous FRC consultation on the standards.

Both responses can be read here:
September Response
February Response

Our response to the Brydon Review  in June of this year can be accessed here