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
IAASB embraces the future with new Technology Position
3 October 2024
The International Auditing and Assurance Standards Board (IAASB) has unveiled its new Technology Position designed to guide how the IAASB adapts its work to evolving technologies and their interaction with audit and assurance.
FRC releases overview of UK accountancy and audit landscape
30 September 2024
The Financial Reporting Council (FRC) has released the 22nd edition of its Key Facts and Trends report with detailed statistics and trend analysis on the UK accountancy and audit environment. The report notes a decrease in the overall number of registered audit firms, confirming an ongoing trend of consolidation. The number of FTSE 350 audits undertaken by non-Big Four firms has also increased since 2022.
IFAC issues final instalment of three-part publication supporting SMPs implementing IAASB Quality Management Standards
30 September 2024
The International Federation of Accountants (IFAC) has released the third part of its publication series providing support and guidance for small-and-medium-sized practices implementing the International Auditing and Assurance Standards Board’s (IAASB) quality management standards.
FRC outlines approach to external private capital in UK audit firms
26 September 2024
The Financial Reporting Council (FRC) has issued a letter to audit firms and Recognised Supervisory Bodies highlighting the importance of maintaining audit quality, independence and public interest focus when contemplating changes in ownership structures.
IAASB releases new ISA for LCE adoption guide
25 September 2024
The International Auditing and Assurance Standards Board (IAASB) has released an adoption guide to help jurisdictions adopt the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).
IAASB shares update on balancing effectiveness and timeliness in audit and assurance standard setting
10 September 2024
The International Auditing and Assurance Standards Board (IAASB) has published its 2022-23 Public Report, Balancing Effectiveness and Timeliness in Audit and Assurance Standard Setting. The report tracks the IAASB’s progress on tackling key public interest issues, improving the timeliness of standard setting, and strengthening stakeholder relationships.
IAASB releases 2023-24 Handbook
29 August 2024
The International Auditing and Assurance Standards Board (IAASB) has issued the 2023-24 edition of its Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements. Comprising, for the first time, four volumes, ISA 600 (Revised) and the ISA for LCE have also been included.
IAASB issues new guidance on using the ISA for LCE
27 August 2024
The International Auditing and Assurance Standards Board (IAASB) has issued new guidance on the application of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). The guidance assists auditors in determining whether the standard is appropriate to use for a specific engagement.
Ethics
IESBA updates Q&As on revisions to listed entity and PIE definitions
3 September 2024
The International Ethics Standards Board for Accountants (IESBA) has updated its Q&A publication on revisions to the definitions of listed entity and public interest entity in the IESBA Code of Ethics. Changes include a new Q&A addressing the scenario where a jurisdiction has no PIE definition.
IESBA publishes 2024 Handbook
30 August 2024
The International Ethics Standards Board for Accountants (IESBA) has released its 2024 Handbook of the International Code of Ethics for Professional Accountants incorporating revisions to the definition of public interest entity and technology-related provisions of the Code.
Financial reporting
IASB concludes the revenue Standard is working as intended
30 September 2024
Following its Post-implementation Review of IFRS 15 Revenue from Contracts with Customers, the International Accounting Standards Board (IASB) has surmised that the Standard is working as intended and providing investors with useful information.
UKEB launches consultation on draft comment letters on IASB exposure drafts
27 September 2024
The UK Endorsement Board (UKEB) is seeking comment on its draft comment letters responding to IASB exposure drafts – one on climate-related risks and uncertainties, and another on amendments to IFRS 19. The comment period is open for both documents until 11 November 2024. It also invites feedback on its Draft Endorsement Criteria Assessment on amendments to financial instrument classification and measurement. Comments are welcome until 10 January 2025.
FRC publishes Annual Review of Corporate Reporting
24 September 2024
Setting out the findings of its UK company annual report and accounts monitoring activities, the Financial Reporting Council (FRC) has issued its Annual Review of Corporate Reporting. Improvements to or maintenance of quality in several reporting issues in the FTSE 350 have been observed with provisions and contingencies falling out of the ‘top ten’ issues for the first time in over five years.
IASB launches consultation on proposed improvements to the equity method
19 September 2024
The International Accounting Standards Board (IASB) has announced a public consultation on proposed amendments to IAS 28 Investments in Associates and Joint Ventures which aim to enhance and clarify how to apply the equity method. The comment period is open until 20 January 2025.
IASB embarks on review of the statement of cash flows
16 September 2024
Responding to calls for current requirements to provide more useful information to financial statement users, the International Accounting Standards Board (IASB) has launched a project to review and improve the requirements for the statement of cash flows in IFRS Accounting Standards.
FRC issues new editions of UK and Ireland accounting standards
10 September 2024
The Financial Reporting Council (FRC) has issued September 2024 editions of UK and Ireland financial reporting standards, encompassing all amendments issued to date.
FRC publishes thematic reviews into offsetting and insurance contracts
5 September 2024
Two thematic reviews have been issued by the Financial Reporting Council (FRC). One looks into offsetting in the financial statements in the context of the practice featuring regularly in the FRC’s top ten reporting findings. The other reviews company disclosures against IFRS 17 Insurance Contracts following the first full year of reporting.
IASB proposes update to IFRS Accounting Taxonomy 2024
29 August 2024
The International Accounting Standards Board (IASB) has issued a proposed update to the IFRS Accounting Taxonomy 2024 reflecting new and amended IFRS Accounting Standards including IFRS 9 Financial Instruments, IFRS 7 Financial Instruments: Disclosures and IFRS 19 Subsidiaries without Public Accountability: Disclosure. The deadline for comments is 28 October 2024.
Sustainability
IFRS Foundation and World Bank Group expand partnership towards adoption of ISSB Standards in EMDEs
26 September 2024
The IFRS Foundation and the World Bank Group have announced their commitment to broaden the scope of their existing partnership to support the adoption of ISSB Standards in emerging markets and developing economies (EMDEs).
IFRS Foundation issues guide for preparers voluntarily applying ISSB standards
25 September 2024
Under increased investor demand for decision-useful and globally comparable sustainability information, the IFRS Foundation has published a guide aiming to support companies who wish to voluntarily apply ISSB standards – in the absence of regulatory requirements.
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