Audit and Assurance news

The FRC has today published a new FRC Staff Guidance, Auditor responsibilities under ISA (UK) 720 in respect of climate related reporting by companies required by the Financial Conduct Authority. This staff guidance also includes a brief reminder of auditor’s responsibilities under ISA (UK) 720 in respect of the company’s Streamlined Energy and Carbon Reporting (‘SECR’) disclosures.   Increasingly auditors have requested guidance from the FRC, in respect of their specific responsibilities under ISA (UK) 720, following the introduction of TCFD aligned climate-related disclosure requirements for listed companies by the Financial Conduct Authority (FCA). In the FRC’s ESG Statement of Intent, published in July 2021 the FRC stated that they will monitor the need for guidance on ESG-related matters and issue audit and assurance guidance at the national level as appropriate. The guidance note is designed to address this commitment.

The Companies Act 2014 allows companies that meet certain criteria to avail of an exemption from the requirement to have an audit. We have published a number of FAQs dealing with this topic which members might find helpful.   

IAASA have published a new Standards Newsletter to provide the latest news and information about IAASA's auditing and assurance standards projects. In this first edition, you'll find information on recently adopted standards including the Quality Management Standards and Interim Reviews (Ireland) 2410  as well as the latest consultations and other developments. Future editions will also highlight auditing standards due to take effect shortly. The first edition is available on the IAASA website. 

The Department of Enterprise, Trade and Innovation has launched the Public Consultation on Reform and Modernisation of Legislation regarding Co-operative Societies. Work is nearing completion on proposed legislation to repeal the Industrial and Provident Societies Acts 1893-2021 and provide a modern and effective legislative framework suitable for the diverse range of organisations using the co-operative model in Ireland. This consultation outlines a number of issues and asks specific questions to assist the Department prior to finalising legislative proposals. The Department is also taking the opportunity to give stakeholders a general overview of the proposed legislation. The department is seeking responses from interested parties by 25 February 2022. The Press release regarding the consultation can be found here. The Institute is responding to this consultation  and we welcome comments from members. Please use the form here to send us your views on this proposed reform. 

IESBA STAFF Q&A: REVISED FEE-RELATED PROVISIONS OF THE CODE This Questions and Answers (Q&A) publication is issued by the Staff of the International Ethics Standards Board for Accountants® (IESBA®). It is intended to assist national standards setters, IFAC member bodies and professional accountants (PAs) in public practice (including firms) as they adopt and implement the revisions to the fee-related provisions of the IESBA International Code of Ethics for Professional Accountants (including International Independence Standards)™ (the Code)*. The IESBA issued its Fees pronouncement in April 2021. This publication is designed to highlight, illustrate or explain aspects of the revised fee-related provisions in the Code, and thereby assist in their proper application.

Pursuant to its powers under section 931(4) of the Companies Act 2014 (‘the Act’), the Irish Auditing and Accounting Supervisory Authority (‘the Authority’) has decided to revoke the recognition of the Institute of Chartered Accountants of Scotland (‘ICAS’) granted under S.930 of the Act with effect from 22 December 2021. This means that ICAS may no longer authorise individuals or firms as statutory auditors in Ireland or undertake any audit related regulatory functions. This decision follows the application by the ICAS to the Authority for revocation of its recognition. By virtue of the revocation of its recognition, ICAS is no longer a prescribed accountancy body under the Act and therefore, no longer comes under the remit of the Authority.