This month’s update from the ICAEW Professional Standards Department includes examples of good practice identified during recent QAD monitoring visits to audit firms, the results of our latest AML thematic review which focuses on COVID-19 support schemes and the 2021/22 findings of QAD public sector monitoring activity. 

It’s anticipated that ICAEW’s new disciplinary framework will come into effect in spring 2023 – read more about the reasons for the changes. And the ICAEW regulatory and disciplinary committees are also recruiting for various lay and chartered accountant roles – find out more about the expertise they are looking for and how to apply.

Disciplinary update: November 2022
Take note of the latest disciplinary cases to ensure you or your firm are not making similar mistakes.

New disciplinary framework progresses to final approval
The proposed framework has been approved by the Legal Services Board and is now with the Privy Council for the final stage of the process. It is expected to be implemented in spring 2023.

Working in the regulated area of audit: updates

PIE audits: new registration requirements
New FRC registration requirements for firms.

Good practice when taking on new audits
Recent intelligence shows that there are significant numbers of UK companies seeking new auditors and that the audit tender market is buoyant. ICAEW’s Quality Assurance Department (QAD) shares examples of good practice identified during recent calls and visits to audit firms.

Local audit quality inspection results published

88% of financial audit reviews carried out by ICAEW’s Quality Assurance Department (QAD) in 2021/22 were graded good or generally acceptable. The results of these reviews form part of the Financial Reporting Council’s (FRC) summary report on 2021/22 local audit inspections. Overall, the FRC rated 70% of local audits as good or only requiring limited improvements. Watch our short video which summarises the findings of QAD’s public sector monitoring activity in 2021/22.

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Anti-money laundering updates

How accountancy firms are helping to detect COVID fraud
ICAEW firms are playing a key role in identifying and dealing with COVID fraud. We talk to Michelle Giddings, ICAEW’s Head of AML, about a recent survey that shows how firms are encouraging clients to pay back ineligible claims and supporting law enforcement by reporting fraudulent activities.

OFSI issue general licence to permit the payment of legal fees to designated persons
As a result of the increasing number of new designations under the Russia and Belarus regimes, and the correlating increase in the number of those seeking a licence from OFSI for the payment of legal fees, OFSI has issued a general licence to permit the payment of legal fees owed by individuals and entities designated under either of these regimes.

ICAEW training films

Hitting the mark
We share case studies on how firms are using All Too Familiar, ICAEW’s award-winning training film to support anti-money laundering training for staff.

Working in the regulated area of insolvency: updates

Tax clearance requests in Members Voluntary Liquidations
HMRC issues guidance to avoid further delays in getting tax clearance in MVL cases.

Insolvency Code of Ethics – Internal Audit
Read clarification issued by the Recognised Professional Bodies regarding the Insolvency Code of Ethics’ reference to ‘audit-related work’.

Current vacancies on committees

Apply to serve on a regulatory or disciplinary committee
We are recruiting for various roles across our regulatory and disciplinary committees. All significant decisions on regulatory and conduct matters are made by ICAEW regulatory and disciplinary committees. These committees operate independently from ICAEW staff and comprise a parity of lay and chartered accountants with a lay chair who has a casting vote. Find out more about the expertise we are looking for, remuneration rates for accountant and lay members and how to apply.

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