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Professional Standards update: September 2022

Author: ICAEW

Published: 20 Sep 2022

In this month’s newsletter we issue a risk alert for new audit tenders, provide you with additional guidance on the UK ban of the provision of accountancy services to Russia and highlight another case study on how our latest training film is being used. We speak with one of the ICAEW Regulatory Board’s newest members, Claire McManus about why a people-focused approach is close to her heart and how the wider environment influences professional conduct. Our latest disciplinary report and our 2021/22 Practice Assurance Monitoring Report are also now available.

 

Disciplinary update: September 2022

Read the latest disciplinary update to check neither you or your firm are making similar mistakes.

Committee Vacancies

Find out more about the expertise we are looking for, remuneration rates for accountant and lay members and how to apply.

2022 Practice Assurance Report

Are you confident your firm is compliant? Read our latest report to understand the most common pitfalls and access resources to support compliance.

New standing data forms

Help us ensure your 2023 fee renewals are correct by telling us about changes to your firm record via our new series of forms.

We have split the standing data form to make it easier for you to tell us about small changes to your firm structure.

We have also updated the mergers, acquisitions and other business changes form.

(Eligibility issues created by not keeping your firm record up to date are some of the most common issues we see.)

The 2023 fee renewals will be emailed to the relevant regulatory contact for each regulated area. Please look out for these notices during November and December.
  

Tell us about your client services portfolio

ICAEW accredited probate firms and firms we supervise under the Practice Assurance scheme were emailed a survey on 20 September. The survey invites firms to tell us about their current client services portfolio and their future plans.
The survey is being carried out with our partner organisation, OMB.

Please take the opportunity to feed into our legal services review

Fresh perspectives

The ICAEW Regulatory Board ensures ICAEW’s regulatory and disciplinary work promotes and maintains the highest professional standards. We talk to Claire McManus, one of the board’s newest members, about why a people-focused approach is close to her heart, how the wider environment influences professional conduct, and her interest in ‘left field’ questions.

ISQM1: three months to complete development of your system of quality management

There are about three months to go before audit firms need to comply with the International Standard on Quality Management 1 from 15 December 2022. The ICAEW Quality Assurance Department expects that all active audit firms will now, as a minimum, have a proper plan to ensure that their system of quality management will be operational from the implementation date. This update provides guidance on what is required.

Risk alert for new audit tenders

As ICAEW registered auditors will be aware, in response to changes in the audit market, the growth of challenger firms and some more complex audits moving away from the largest audit firms, we have increased our activities to monitor the audits undertaken across firms registered for audit with ICAEW. Our monitoring of auditor cessations and other recent intelligence information shows that there are significant numbers of UK companies seeking new auditors.

Taking risks with PII run-off is a false economy

Run-off cover for your professional indemnity insurance is critical to protect your clients, your firm and yourself. We look at why this cover is so important, and how ignoring the issue could put you at financial and compliance risk.

Proliferation financing (PF) risk assessments

Recent changes to the Money Laundering Regulations include a new requirement to assess the risk your firm may be used to enable PF. The CCAB Guidance is being updated to include guidance on this requirement.

UK ban on the provision of accountancy services to Russia

New guidance is available from our AML supervision team on the recent legislation.

Creating a buzz around AML

In our latest article on how firms are using ICAEW’s AML educational drama All Too Familiar, we talk to a money laundering reporting officer about why the film engaged staff in a way he had found difficult with more conventional approaches to training.

Payroll processing: stop and think about AML

Firms are using ICAEW’s AML educational drama All Too Familiar to support in-house training in a variety of ways. Caroline Wheeler, partner at Bevan Buckland LLP, tells us how the film helped staff in her firm’s payroll department when they took on an unusual number of new clients.

Creditor bankruptcy and liquidation petition deposits to rise

The Insolvency Service is introducing changes to the deposits paid to initiate creditor bankruptcies and compulsory liquidations. The petition deposit, the amount that needs to be paid up-front to seek an order, will be increasing in all cases where a petition is filed at court on or after 1 November 2022.

Access the stakeholder briefing pack

Read further details on these changes

HMRC guidance: Tax Clearance Requests in Members Voluntary Liquidations

HMRC has changed its process for giving tax clearance in MVL cases. From 12 September 2022 you’ll no longer need to post these requests to two separate areas of HMRC.