ICAEW's Audit and Assurance Faculty brings you the latest technical updates on developments in auditing and assurance, financial reporting and ethics.

IASB issues amendments to IAS 1 Presentation of Financial Statements

Financial Reporting | 31 October 2022

The International Accounting Standards Board (IASB) has issued amendments to IAS 1 Presentation of Financial Statements. The aim is to improve the information companies provide around long-term debt with covenants. The amendments are effective for annual reporting periods beginning on or after 1 January 2024, with early adoption permitted.

IFAC releases additional support for small firms on the IAASB’s Quality Management Standards

Audit and Assurance | 31 October 2022

The International Federation of Accountants (IFAC) released the first instalment in a three-part publication series to help small and medium sized practices implement the new IAASB quality management standards which come into effect on 15 December 2022.

FRC publishes local audit inspection results

Audit and Assurance | 28 October 2022

The Financial Reporting Council (FRC) has published its inspection findings into the quality of major local body audits in England. Overall 70% of financial statements audits for the 2021/22 inspection cycle required no more than limited improvements.

FRC publishes Annual Review of Corporate Reporting

Financial Reporting | 27 October 2022

The Financial Reporting Council (FRC) has published their Annual Review of Corporate Reporting. The report reiterated the need for high-quality disclosures from companies during periods of economic uncertainty.

IASB optional response to the consultation on IFRS for SMEs

Financial Reporting | 25 October 2022

The International Accounting Standards Board (IASB) has made available an optional response document to provide comments on the proposals to update the IFRS for SMEs Accounting Standard. Comments to be received by 7 March 2023.

IAASB Public consultation for revised audit evidence standard

Audit and Assurance | 24 October 2022

The International Auditing and Assurance Standards Board (IAASB) opened the public consultation for proposed changes to International Standard of Auditing (ISA) 500, Audit Evidence. The proposed changes include explaining its relationship with other standards, modernizing ISA 500 to be adaptable to the current audit environment and emphasizing the role of professional scepticism.

IESBA Code in combating green washing

Financial Reporting | 21 October 2022

The International Ethics Standards Board for Accountants (IESBA) released a Q&A publication, Ethics considerations in Sustainability Reporting, Including Guidance to Address Concerns about Greenwashing. The publication highlights the relevance and applicability of the International Code of Ethics for Professional Accountants in the context of sustainability reporting and assurance, especially circumstances involving greenwashing.

FRC publish report on disclosing net zero commitments

Financial Reporting | 11 October 2022
The Financial Reporting Council (FRC) has published a report on disclosing net zero commitments including practical tips and questions to consider. This is designed to be used by reporting teams as they prepare net zero or other green house gas emission reduction commitments.

FRC launch review of ISA (UK) 540 (Revised)

Audit and Assurance | 4 October 2022
The Financial Reporting Council (FRC) has opened a post implementation review of the auditing standard ISA (UK) 540 (Revised December 2018) Auditing Accounting Estimates and Related Disclosures. Interested stakeholders are invited to attend one of two roundtables during November to provide feedback.

FRC report on barriers to diversity on boards

Audit and Assurance | 4 October 2022
The Financial Reporting Council (FRC) has published a report on Navigating barriers to senior leadership for people from minority ethnic groups in FTSE 100 and FTSE 250 companies. This looks at the challenges and opportunities that minority ethnic individuals might experience in progressing to the boards of FTSE 100 and FTSE 250 companies.

IESBA Key ethics and independence considerations in relation to military conflict in Ukraine

Audit and Assurance | 3 October 2022
The International Ethics Standards Board for Accountants (IESBA) released the staff alert, The Ukraine Conflict: Key Ethics and Independence Considerations. This draws attention to a number of important provisions in the IESBA code which must be complied with when carrying out work whilst navigating the unprecedented challenges and risks arising from the Russia-Ukraine war.