Credit crunch issues: Auditors
Resources to help auditors of financial statements to address these risks and to appreciate the wider public policy issues raised by the credit crunch.
All sectors
APB guidance on going concern
The APB published Bulletin 2008/10 in December 2008. The purpose of the Bulletin is to assist auditors to respond to the challenges of the current economic conditions. It stresses that the current difficult economic conditions do not of themselves mean that a material uncertainty exists about an entity's ability to continue as a going concern or justify auditors modifying their auditor's reports to draw attention to going concern.
International Standards on Auditing (UK and Ireland)
The APB has issued a consultation on the use of ‘clarified’ ISAs in the UK. The proposed clarified ISAs (UK and Ireland) and ISQC (UK and Ireland) adopt the clarified ISAs and ISQC as issued by the IAASB with some proposed supplementary requirements and guidance, as required by local law and regulations.
The US Center for Audit Quality launches Auditing in a Changing Economy
The US Center for Audit Quality has launched a portal, Auditing in a Changing Economy, which brings together information for auditors in a single place. The portal contains information on many areas including fair value measurements, internal control over financial reporting, accounting for estimates, impairment and disclosures.
APB issues Draft Updated Guidance on Auditing Complex Financial Instruments
The APB issued a Consultation Draft of an update of PN 23 (attached, 58 pages), with a deadline for comments of 27 March 2009. The press notice is at www.frc.org.uk.