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

Local audit quality inspection results

Audit and Assurance | 29 October 2021

The Financial Reporting Council (FRC) has published inspection findings into the quality of major local body audits in England for the financial year ended 31 March 2020.

Preparing for mandatory TCFD reporting

Financial Reporting | 28 October 2021

The Financial Reporting Lab (the Lab) has published a report to help companies prepare for mandatory reporting against the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations. The Lab has also published a snapshot of the status of current reporting against the framework in the UK as well as research by the Alliance Manchester Business School investigating climate-related scenario analysis.

Annual Review of Corporate Reporting

Financial Reporting | 27 October 2021

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting outlining the FRC’s top ten areas where improvements to reporting are required, including judgements and estimates, revenue and cash flow statements. The FRC has also published its year-end bulletin of key corporate reporting matters for companies setting out the FRC’s areas of focus for the coming year.

Webcast series on Exposure Draft Management Commentary

Financial Reporting | 27 October 2021

The International Accounting Standards Board (IASB) has released a series of five bitesize webcasts on the Exposure Draft Management Commentary to answer frequently asked questions about the new framework.

FRC oversight responsibilities and independent supervisor reports

Audit and Assurance | 22 October 2021

The Financial Reporting Council (FRC) has published its annual report to the Secretary of State for Business, Energy and Industrial Strategy (BEIS) on how it has discharged its oversight responsibilities in 2020/21 and also published its Report of the Independent Supervisor on Auditors General.

Climate change deep dive

Financial Reporting | 20 October 2021

The executive of the Joint Forum on Actuarial Regulation (JFAR) has approved the formation of a task force to investigate, report and publish a deep dive on the science of climate change.

New resources for auditors of small businesses and broker-dealers

Audit and Assurance | 20 October 2021

The Public Company Accounting Oversight Board (PCAOB) has released eight video presentations as part of its virtual Small Business and Broker-Dealer Auditor Forum.

2021 Ethics Handbook

Ethics | 18 October 2021

The International Ethics Standards Board for Accountants (IESBA) has released the 2021 Edition of the Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards).

PCAOB Staff Update and Preview of 2020 Inspection Observations

Audit and Assurance | 18 October 2021

The Public Company Accounting Oversight Board (PCAOB) has released a new publication which shares observations from audit firm inspections from 2020.

Subsidiaries without Public Accountability: Disclosures

Financial Reporting | 14 October 2021

The International Accounting Standards Board (IASB) has released a video discussing the proposals for a new accounting standard that would permit eligible subsidiaries to apply IFRS Standards with reduced disclosure requirements. The deadline for comments is 31 January 2022.

Review of IAS 37 Provisions, Contingent Liabilities and Contingent Assets

Financial Reporting | 14 October 2021

The Financial Reporting Council (FRC) has published findings from its review into IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ which has been identified as a recurrent problem area by the FRC. The review considered a sample of 20 companies’ annual reports and identified examples of good practice as well as scope for improvements.

Get ready for structured digital reporting

Financial Reporting | 12 October 2021

The Financial Reporting Council’s Lab (Lab) has published a report entitled ‘Structured reporting: an early implementation study’ to help support companies in the move towards high-quality digital reporting, setting out key considerations and tips for companies. The Lab will also host a webinar on 7 December.

2022 FRC Taxonomies Suite

Financial Reporting | 8 October 2021

The Financial Reporting Council (FRC) has issued its 2022 suite of FRC Taxonomies which has been updated for all FRC taxonomies.

Audit evidence from external sources

Audit and Assurance | 7 October 2021

The Public Company Accounting Oversight Board (PCAOB) has released staff guidance relating to evaluating the relevance and reliability of audit evidence obtained from external sources, including considerations of quality and quantity.

Alternative Performance Measures review

Financial Reporting | 7 October 2021

The Financial Reporting Council (FRC) has published its review into the use of Alternative Performance Measures (APMs) by UK listed companies. The review found that companies need to be more transparent about their use and linkage to their IFRS or UK GAAP results.