In this guide from the ICAEW Library & Information Service you can find a short history of the development of auditing standards in the UK, a brief overview of current standards and information on where to find the standards.
Contents
History and development of UK Auditing Standards
UK Auditing Standards
GAAS
Sources for UK Auditing Standards
History and development of UK Auditing Standards
The timeline below provides a brief overview of developments since 1976. Prior to this time, auditing guidance was published by the professional bodies (for example the ICAEW published statements on auditing and reporting in the Members' Handbook).
All links in the timeline below show you our holdings of the material referred to. For information on where you can find online editions of current standards please see Sources for UK Auditing Standards
1976
The Auditing Practices Committee (APC) was established by the Consultative Committee of Accountancy Bodies (CCAB) in March 1976 to formalise the existing co-operation of the CCAB bodies on audit practices.
At the time of its establishment the role of the Auditing Practices Committee was defined as 'to provide a framework of practice for the exercise of an auditor's individual judgement, by proposing for the approval of the Councils of the governing bodies statements of explanation and guidance on auditing, and definitive statements of auditing standards' (The Accountant, 4 March 1976).
1978
The APC published a draft auditing standards booklet (see online catalogue entry) on 24 May 1978 with an explanatory foreword, three auditing standards and seven auditing guidelines. The standards and guidelines were conceived as a codification of existing best practice. The auditing guidelines were intended to suggest applications of the standards in particular cases.
Over a two year period of consultation the APC received more than 1,500 pages of responses from 240 sources ('Will Audit Standards Standardise Audits?', The Accountant, 24 April 1980).
1980-1991
The first standards and guidelines were published in April 1980 and used a numbering sequence starting with 101 for the standards and 201 for the guidelines (to avoid any confusion with the existing SSAPs). The first standard (101) was 'The auditor's operational standard' and the first guideline (201) was 'Planning, controlling and recording'.
Although new standards had been issued, the older guidance was not entirely replaced at this time. The initial volume of Auditing standards and guidelines published in 1980 stated that the existing pronouncements on audit matters approved by the respective councils of the accountancy bodies should be considered by their members as having the same status as auditing guidelines and would remain in force until withdrawn.
In 1989 the APC began to issue a series of 'Practice Notes' which were intended as good practice guidelines to assist auditors in applying auditing standards for particular circumstances or industries. The first Practice Note ('Lloyd's syndicates, brokers and underwriting agents- interim guidance on ad hoc reporting') was issued by the APC in December 1989.
1991-2004
The Auditing Practices Committee (APC) was restructured in 1991 and reconstituted as the Auditing Practices Board (APB). The APC Practice Notes already in existence at this time were adopted by the APB and it was stated that they would remain in force until replaced by a SAS or APB Practice Note or Bulletin.
2004
In 2004 the Financial Reporting Council (FRC) took over responsibility for the setting of audit standards through the APB which became a subsidiary board of the FRC. The FRC was also charged with monitoring and enforcing these auditing standards.
On 22 December 2004 the Auditing Practices Board (APB) issued International Standards on Auditing (UK and Ireland) which would apply to all audits of financial statements for periods commencing on or after 15 December 2004, replacing the Statements of Auditing Standards.
2009
The International Auditing and Assurance Standards Board (IAASB) completed a project (known as the 'Clarity Project') to update and reformat the International Standards on Auditing (ISAs) which sought 'to improve the understandability of the ISAs and make them more compatible with regulatory frameworks, including the EC's Statutory Audit Directive.'
The APB issued a press release on 13 October 2009 The APB issues new ISAs (UK and Ireland) announcing the publication of the new standards to replace the existing ISAs (UK and Ireland) and ISQC (UK and Ireland) 1. The new standards will apply to audits of financial statements for periods ending on or after 15 December 2010.
The APB also issued a staff paper Summary of the Main Changes in the New ISAs (UK and Ireland) which was intended to assist those seeking to understand the changes.
UK Auditing Standards
Auditing Standards - International Standard on Auditing (UK and Ireland)
'International Standards on Auditing (ISAs) (UK and Ireland) contain basic principles and essential procedures (identified in bold type lettering) together with related guidance in the form of explanatory and other material, including appendices.'
See:
International Standards on Auditing (APB website)
APB Ethical Standards on Auditing (ESs)
'Ethical Standards (ESs) contain basic principles and essential procedures (identified in bold type lettering) together with related guidance in the form of explanatory and other material. The standards cover the integrity, objectivity and independence for auditors and apply in the audit of financial statements.'
See:
Ethical Standards (APB website)
APB Ethical Standards (ICAEW website)
Exposure Drafts
Standards are preceded by Exposure Drafts for public comment and responses. These responses are available for public consultation in the Library & Information Service by prior arrangement with the Librarian. Please contact the Library Enquiry Desk for details.
Statements of Standards for Reporting Accountants (SSRA)
Only a single statement conforms to this type and it is concerned with small charitable companies.
See:
Statements of Standards for Reporting Accountants (APB website)
Standards for Investment Reporting (SIRs)
The APB also issues Statements of Investment Circular Reporting Standards (SIRs). These 'contain basic principles and essential procedures with which reporting accountants are required to comply in the conduct of an engagement in connection with an investment circular (eg a prospectus listing particulars circular to shareholders or similar documents) prepared for issue in connection with a securities transaction governed wholly or in part by the laws and regulations of the United Kingdom or Republic of Ireland.'
See:
Standards for Investment Reporting (APB website)
Practice Notes and Bulletins
The APB issues Practice Notes to assist auditors in applying Auditing Standards of general application to particular circumstances and industries. Bulletins are issued to provide auditors with timely guidance on new or emerging issues.
Practice Notes and Bulletins are persuasive rather than prescriptive.
See:
Bulletins (APB website)
Practice Notes (APB website)
GAAS (Generally Accepted Auditing Standards)
The acronym GAAS stands for 'Generally Accepted Auditing Standards' and describes a set of formal and informal rules (that can be written or unwritten) acknowledged as the basis for auditors to conduct their work and have the quality of their work assessed by. These include, legislation, pronouncements from professional or standard setting bodies, legal judgements in cases involving auditors and practitioners 'internal' standards that are accepted practice even when no formal public pronouncements have been issued.
Sources for UK Auditing Standards
APB Website
The Auditing Practices Board (APB) website provides full text access to all the publications including International Standards on Auditing, Ethical Standards, Exposure Drafts, the single SSRA, SIRs, Practice Notes, Bulletins and other papers such as consultation documents. There is also an online ordering facility for the published versions.
The APB website also includes an archive of Superseded Standards that includes the text of the old Statements of Auditing Standards that were replaced by the International Standards on Auditing (UK and Ireland) in December 2004.
Auditing Practices Board: Standards and Guidance
The Auditing Practices Board has published an annual reference book with the title "Standards and Guidance" since 2005. The current publishers are CCH. The annual volume is arranged in eight sections covering: activities of the APB for the previous year, statement of the scope and authority of APB pronouncements, auditing standards, statements of standards for reporting accountants, standards for investment reporting, guidance and a glossary.
CCH
CCH are publishers of the books, manuals, electronic publications and subscription products in the key areas of accountancy, audit, taxation, financial reporting and business. The CCH website provides the opportunity to purchase print copies of all the CCH Audit publications including the yearly edition of the Auditing and Reporting reference book containing the complete texts of all UK Statements of Auditing Standards; Statements of Investment Circular Reporting Standards; all the essential UK auditing guidance extant at 30 April of the current year. The website includes details of the special discounted prices available for ICAEW members.
Please note that to view any of the full text content you must be a subscriber and enter an ID and password. A free demo of the service is available. Please contact CCH for details.
Auditing and Reporting
The reference book "Auditing and reporting" has been published annually since 1980. The current publishers are CCH. The annual volume includes:
- APB Ethical Standards
- International Standard on Quality Control (UK & Ireland)
- International Standards on Auditing (UK & Ireland)
- Standards for Investment Reporting
- APB Practice Notes
- APB Bulletins
- Statement of Standards for Reporting Accountants
- Other APB Papers
- ICAEW Guidance on Auditing and Reporting
Older editions include the APB Statements of Auditing Standards (SASs) that were in use before International Standards on Auditing were implemented in the UK and Ireland.
Please note that some APB documents are not reproduced in the book, but copies may be obtained from the APB website or failing that the published versions can be ordered from CCH.
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