Statutory six-year cycle for audit monitoring
All firms will be familiar with ICAEW’s obligation to carry out audit monitoring visits to all firms at least once every six years. The unprecedented circumstances of the pandemic put great pressure on firms and ICAEW, and the Audit Registration Committee (ARC) appreciates the efforts of all audit firms that have facilitated continuation of audit monitoring throughout 2020 and 2021.
Some audit visits have not met the statutory cycle during the period, but by the end of 2021 the six-year cycle was up to date. Throughout this time, the FRC has been clear that ICAEW must ensure that it continues to meet its statutory obligations for audit monitoring as its top priority.
We know that the effects of the pandemic are not yet over. ICAEW contacts firms well in advance to agree visit dates and firms must make every effort to accommodate the visit. All visits that cannot be agreed within the six-year cycle are reported to ARC who consider these delays on a case-by-case basis. It is likely that ARC will place restrictions on a firm’s audit registration until it can accommodate an audit monitoring visit, and these may include external file reviews before signing audit reports.
Firms in this position should be assured that any restrictions will be lifted at the earliest possible opportunity. However, while restrictions apply these will have a negative impact on audit firms, both in financial and operational terms.
Be prepared for Quality Management standards
Third country audit registration in the EU
Firms need to allow the necessary timescales to register with a particular EU state for the first time, when securing the audit of an entity with an oversees listing. This is to ensure the application goes through in time for the reporting period.
Listen again: Audit Update – Q4 2021
Quality assurance monitoring: view from the firms
All firms and IPs are asked to complete a survey anonymously after their review. We use the findings from these surveys to support the continuous improvement of our monitoring processes and procedures. The feedback is received and compiled by an independent survey company.
Give your view: changes to ICAEW’s disciplinary framework
Resourcing root cause analysis
Plan ahead: regulatory applications and firm structure changes
ICAEW is implementing a new records management system this spring. As the new system goes live, there may be some disruption to our usual processing times, particularly during March and April. If you or your firm is considering a new regulatory application or change (eg, to the structure of your firm or to your own registration record), please contact our regulatory support team by emailing regulatorysupport@icaew.com at the earliest opportunity.
Please note, you must notify us of any changes to the structure of your firm within 10 business days of the change. More information about maintaining your firm’s record is available here.