Technical roundup 11 December

Dec 10, 2020

Developments of interest this week are outlined.

Chartered Accountants Ireland

ROI

  • Following public consultation, IAASA has this week issued revised versions of: The Ethical Standard for Auditors (Ireland); certain International Standards on Auditing (Ireland) and the International Standard on Quality Control (Ireland); the Glossary of Terms, which defines the terms used in the Irish auditing framework

UK

  • The FRC has published consolidated covid-19 guidance for companies and auditors. The consolidated guidance supersedes all previous FRC guidance for companies and auditors.

Europe

International

  • Mark Carney, UN Special Envoy for Climate Action and Finance, has commented on the IFRS Foun­da­tion Trustees' sus­tain­abil­ity con­sul­ta­tion and stresses that he endorses the creation of new IFRS Sus­tain­abil­ity Standards Board (SSB).
  • International Standards on Auditing (ISAs) require auditors to exercise appropriate professional scepticism. But the most common finding in the Financial Reporting Council’s (FRC) audit quality reviews is that audit firms did not challenge the management of audited entities effectively on the significant judgements they had made. Given the prevalence of key findings in this area, the FRC has undertaken a new analysis of its audit quality inspection results to identify recurring themes requiring audit firms’ attention, examples of good practice and to correlate these results with root cause analysis undertaken by the largest UK audit firms.
  • The International Accounting Standards Board (Board) is calling for feedback on the IFRS Standards for group accounting—IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities.