ICAEW's Audit and Assurance Faculty brings you the latest technical updates on developments in auditing and assurance, financial reporting, ethics and sustainability.
Audit and assurance
PCAOB adopts new requirement to standardise disclosure of firm and engagement metrics
21 November 2024
The Public Company Accounting Oversight Board (PCAOB) has adopted new requirements obliging certain PCAOB-registered audit firms to publicly report annual specified metrics relating to their audits and audit practices. The areas covered by the required metrics include partner and manager involvement, workload and training hours for audit personnel.
FRC approves CIPFA Diploma in Local Audit
20 November 2024
The Financial Reporting Council (FRC) has announced the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Diploma in Local Audit as pre-approved local audit specialist training. Any auditors who have successfully completed the course will be able to apply for Key Audit Partner status retrospectively.
FRC publishes report on quality of major local audits
19 November 2024
On the back of the Government’s legislative measures to clear the backlog in local audit, the Financial Reporting Council (FRC) has published its annual report on the quality of major local audits, which also details how the regulator will continue to support the local audit system to recover from delays in the publication of audited accounts.
PCAOB adopts rule amendment to enhance the Board’s registration program
14 November 2024
Audit firms registered with the Public Company Accounting Oversight Board (PCAOB) can be deemed withdrawn from registration under certain conditions. The amendment allows that, under such conditions, the PCAOB will be able to treat a firm’s failure to file annual reports with and pay annual fees to the Board for at least two consecutive reporting years as a constructive request for leave to withdraw from registration.
FRC publishes local audit specialist training criteria
13 November 2024
With enhancing capacity and capability in the local audit system a priority for the Financial Reporting Council (FRC), criteria to assess local audit specialist training has been released by the regulator. Alongside this, the FRC has published an application form inviting any Recognised Qualifying Bodies (RQBs), training providers and audit firms to submit their training to assessment.
PCAOB updates standard-setting and rulemaking agendas
4 November 2024
Reflecting steps made towards modernising standards and rules in 2024, the Public Company Accounting Oversight Board (PCAOB) has issued updated standard-setting and rulemaking agendas. Click here for further details.
PCAOB issues additional guidance helping auditors with the remediation period
31 October 2024
The Public Company Accounting Oversight Board (PCAOB) has published a new supplement to its Staff Guidance Concerning the Remediation Process. The PCAOB encourages audit firms to apply this supplement to staff guidance when addressing quality control criticisms following an inspection.
Big Four audit firms conclude transition period of operational separation
10 October 2024
The Financial Reporting Council (FRC) has announced that Deloitte, EY, KPMG and PwC have concluded the transition period of operational separation. All four firms met the 2024 deadline set by the Financial Reporting Council (FRC) to split their UK audit and non-audit practices. The initiative was intended to ensure delivery of high-quality audit in the public interest is prioritised.
Financial reporting
FRC publishes 2024 Review of Corporate Governance Reporting
26 November 2024
With revisions to the UK Corporate Governance Code coming into effect from January 2025, the Financial Reporting Council (FRC) has published its Annual Review of Corporate Governance Reporting 2024. The report observes that companies are already preparing for the Code changes – including new Provision 29 requirements – but also cautions that more work is needed in these areas from certain companies.
IPSAS issues two pronouncements for public sector mining entities
26 November 2024
The International Public Sector Accounting Standards Board (IPSASB) has issued IPSAS 50 Exploration for and Evaluation of Mineral Resources and amendments to IPSAS 12 Stripping Costs in the Production Phase of a Surface Mine, to provide guidance on accounting for mineral resources. Both standards will be effective from January 1, 2027, with early application permitted.
Pre-Emption Group report highlights growing confidence in enhanced capital raising flexibility
22 November 2024
The Pre-Emption Group has published a report monitoring the use of its updated Statement of Principles on the disapplication of pre-emption rights for UK listed companies. In the report it was reported that 67.1% of FTSE 350 companies sought enhanced disapplication authority in the 23/24 period, up from 55.7% in 22/23.
IASB launches consultation on proposed improvements to requirements for provisions
12 November 2024
The International Accounting Standards Board (IASB) has issued proposals for improvements to the requirements for recognising and measuring provisions. The proposals aim to help companies apply the requirements more consistently and provide investors with more useful information. Feedback is welcome until 12 March 2025.
FRC invites feedback on updates to the UK Stewardship Code
11 November 2024
The Financial Reporting Council (FRC) has launched a consultation on updates to the UK Stewardship Code. The proposals aim to support economic growth and increase transparency for investors, savers and pensioners. This includes, for the first time, targeted principles for different types of signatories and service providers. The deadline for comment is 19 February 2025.
IPSASB opens consultation on proposed tangible natural resources standard
24 October 2024
The International Public Sector Accounting Standards Board has issued Exposure Draft (ED) 92, Tangible Natural Resources for public comment. Addressing the vacuum of existing direction on accounting for tangible natural resources, the proposed standard proposes recognition, measurement, presentation and disclosure guidance. Comments are welcome until 28 February 2025.
FRC publishes 2025 Taxonomy Suite
21 October 2024
Incorporating changes to all Financial Reporting Council (FRC) Taxonomies, the 2025 UK Taxonomy Suite is now available on the FRC website.
Sustainability
IFAC weighs in on IAASB’s newly published sustainability standard
20 November 2024
The International Federation of Accountants (IFAC) has welcomed the publication of International Standard on Sustainability Assurance (ISSA) 5000, issued by the International Audit and Assurance Standards Board (IAASB). IFAC has cautioned, however, of the risks to investor and consumer protections if all assurance providers are not held to the same standards.
IFRS Foundation publishes guide to help companies with their sustainability-related risks and opportunities
19 November 2024
With increased investor focus on sustainability, The IFRS Foundation has issued a guide intended to help companies identify and disclose material information about sustainability-related risks and opportunities. A key thread of the guide is the link between a company and its stakeholders, society, the economy and the natural environment throughout the value chain.
IOSCO issues statement of support for ISSA 5000
13 November 2024
The International Organisation of Securities Commissions (IOSCO) has announced its support for the International Standard on Sustainability Assurance (ISSA) 5000, issued by the International Audit and Assurance Standards Board (IAASB). This follows the approval of the standard in September and its certification by the Public Interest Oversight Board (PIOB) in early November.
IFRS Foundation report highlights progress in climate-related disclosures
12 November 2024
A detailed progress report issued by the IFRS Foundation has found that over 1,000 companies have referenced the International Sustainability Standards Board (ISSB) in their reports. The report also provides an update on the 30 jurisdictions that are progressing towards introducing the ISSB Standards in their regulatory frameworks.
IPSASB issues pioneering climate-related disclosures standard for the public sector
31 October 2024
The International Public Sector Accounting Standards Board (IPSASB) has launched a public consultation on a draft inaugural sustainability reporting standard for use by governments around the world. The deadline for comment is 28 February 2025.
ISSB updates SASB Standards Taxonomy
28 October 2024
The International Sustainability Standards Board (ISSB) has issued updates to the SASB Standards Taxonomy to reflect recent amendments to the SASB Standards such as those made in connection with the issuance of IFRS S2 Climate-related Disclosures.
IFAC promotes progress in sustainability reporting and assurance in the Middle East and North Africa
24 October 2024
The International Federation of Accountants (IFAC) along with the Emirates Association for Accountants & Auditors (EAAA) have run an event convening critical players in the Middle East North Africa region with the aim of advancing sustainability reporting, assurance, and capacity building in the area.
FRC publishes emerging findings from sustainability assurance market study
15 October 2024
The Financial Reporting Council (FRC) has released preliminary findings from its market study into assurance of sustainability reporting in the UK – the first study of its kind. Stakeholders emphasised the need for a clear regulatory framework to ensure trust and transparency and highlights concerns around consistency in the quality of sustainability assurance services and fears that the market may begin to consolidate around the largest UK audit firms.