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Brexit and audit

The UK Brexit transition period ended on 31 December 2020. New rules apply from 1 January 2021. This page brings together guidance and news from ICAEW, as well as externally-produced resources that provide practical information on audit considerations, auditing standards and audit firms.

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Need to know

Brexit and audit: risk factors
  • Helpsheets and support
  • 14 Dec 2020
Auditors will need to consider how Brexit-related risks could impact on the firms they are auditing. Our guide provides a framework for that analysis.
EU and international trade
  • Hub page
  • 23 Sep 2020
A range of resources on the implications of the UK leaving the EU on 31 December 2020.
EU and international trade
  • Hub page
  • 23 Sep 2020
A range of resources on the implications of the UK leaving the EU on 31 December 2020.
Audit and Brexit: a practical checklist for audit firms
  • Helpsheets and support
  • 16 Dec 2020
The end of the Brexit transition period has resulted in significant changes to how businesses operate. Combined with the impact of COVID-19, this presents unique challenges for auditors. This guide provides ten questions to help auditors develop a consistent approach to Brexit across the practice.
Programme Read the full programme for ICAEW Virtually Live 2021
Brexit checklist
  • Article
  • 22 Nov 2018
This updated guidance is intended to help you prepare for Brexit. It is part of a series of Brexit guidance ICAEW is making available on a variety of topics.

Latest news and insights

Exclusive John Selwood’s Question Corner
  • Article
  • 02 Dec 2021
John Selwood helps to unpick the problematic issue of eligibility for audit exemption.
Exclusive Insights on key changes to deliverables
  • Article
  • 08 Nov 2021
A guide to the updated illustrative auditor’s reports available from the faculty and the FRC, including material uncertainty and going concern.
Exclusive Brexit-related risk
  • Article
  • 31 Mar 2021
The effect of Brexit and COVID-19 on imports and exports, the location of staff, increased risks around fraud and estimate and forecast accuracy all affect auditing. Faculty resources are a valuable asset in understanding the problems.
Hill review urges UK listing rule reforms
  • Article
  • 01 Mar 2021
5 March 2021: A proposed relaxation of the company listing rules aimed squarely at increasing London’s attractiveness as a financial centre post-Brexit has been published.
ICAEW technical round-up: February 2021
  • Article
  • 23 Feb 2021
24 February 2021: This month’s top technical stories on ICAEW Insights include updates on self assessment penalties, IR35 changes and a major change to the government’s Kickstart Scheme.
Brexit and COVID drive audit process rethink
  • Article
  • 16 Feb 2021
16 February 2021: The double whammy of Brexit and COVID has prompted an important focus on approaches to audit that could prove beneficial to auditors and clients alike.
Transition period ends: New UK Audit Regulations
  • Article
  • 04 Jan 2021
4 January 2021: Following the end of the Brexit transition period, new UK Audit Regulations are now in place, effective 1 January 2021. The major changes involve the qualification of EEA auditors and firms that could affect responsible individual (RI) status and ownership tests.
Transition period ends: Irish Audit arrangements
  • Article
  • 04 Jan 2021
4 January 2021: The joint UK and Ireland Regulations issued in January 2020 remain in effect for Irish audits. Following the end of the Brexit transition period, some changes to eligibility are due. These will take effect once the Irish government has issued the appropriate legislation.

Guides and FAQs

Exclusive Engagement letters helpsheet
  • Helpsheets and support
  • 01 Jul 2016
  • DOCX (237kb)
Technical helpsheet providing sample wordings to help you draft engagement letters for a variety of typical engagements for both corporate and non-corporate clients. Includes full text and supplementary schedules.
Exclusive Engagement letters helpsheet part 2 F
  • Helpsheets and support
  • 17 Aug 2016
  • DOCX (236kb)
Supplementary schedule to the main engagement letter helpsheet. Provides sample wordings to help you draft engagement letters. Covers Part 2 F - Trusts and estates tax returns.
Post-Brexit recognition of professional qualifications
  • Helpsheets and support
  • 09 Mar 2021
ICAEW is committed to helping members seeking professional recognition for the pursuit of regulated activities, such as statutory audit, in the European Economic Area (EEA) under the post-Brexit arrangements.
Post Brexit audit rights in the UK
  • Helpsheets and support
  • 18 Feb 2020
The transition period which followed the exit of the UK from the European Union ends on 31 December 2020.
What small practices should do to prepare for Brexit
  • Helpsheets and support
  • 27 Jul 2020
This page presents an overview of instructions and guidance for small practices to prepare during the transition period following Brexit.
Irish third country draft registration application
  • Helpsheets and support
  • 25 Jan 2019
Auditors of UK companies (ie, companies incorporated in the UK) with listings on the Irish Stock Exchange, (such as listed debt), will be required to register with IAASA as third country auditors at the end of the transition period (31 December 2020) unless their registration continues to be accepted on the Irish audit register.
Brexit: FRC guidance for auditors
  • Article
  • 22 Feb 2019
BEIS and the FRC have issued on 22 February 2019 five documents that set out the necessary steps all audit firms (large and small) should undertake to prepare for Brexit including no-deal outcomes.
Brexit and IFRS 9 Financial Instruments – expected credit losses
  • Helpsheets and support
  • 09 Jan 2019
This guide outlines some considerations to help banks and others, including auditors and internal auditors, approach the challenges that have arisen from the introduction of IFRS 9 Financial Instruments and Brexit’s potential impact on this.

Webinars

Brexit and Audit
  • Webinar
  • 04 Feb 2021
The UK transition period ended on 31 December 2020. Join Donna Wilcox, RSM and Paul Winrow, MHA MacIntyre Hudson, as they discuss how the end of the Brexit transition period impacts auditor’s work.
Audit related Brexit issues
  • Webinar
  • 11 Mar 2019
ICAEW’s audit-related Brexit Guidance is intended to help auditors of SMEs deal with current Brexit-related uncertainties associated with a potential no-deal exit as they affect 31 December 2018 and 31 March 2019 audits.

External resources

Auditing for UK auditors and audit firms operating in the European Economic Area (EEA)
  • Website
  • 31 Dec 2020
Brief guidance for UK audit firms, UK auditors, and those with UK audit qualifications operating in the EEA.