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In this issue we highlight concerns from our Quality Assurance Department about audit quality in 2022, key ISQM 1 resources, the latest UK Audit Regulations and changes to the disciplinary framework which will take effect on 1 June.

Audit quality concern from 2022 monitoring reviews

Early data from audit monitoring visits by the Quality Assurance Department (QAD) in 2022 suggests that the proportion of audits considered good or generally acceptable has fallen. There are thematic weaknesses relating to group audits/consolidation, inventory/stock and long-term contracts. 

Key ISQM 1 resources

For firms who have not quite completed their work on service providers – we have published a statement in relation to the support that ICAEW provides that may be considered under that heading.

An overview of the new quality management standards is available for any firms thinking of applying for audit registration.

Root cause analysis for smaller firms now developing their monitoring and remediation processes during 2023 is available.

The latest UK Audit Regulations

New UK Audit Regulations and Guidance came into effect on 5 December 2022. The regulations primarily take account of the new registration arrangements with the FRC for firms that audit PIE entities.

Which audit form and when?

Please see our newly updated guidance on which forms are needed when a firm applies for audit registration. This includes the forms we need when a firm changes its legal entity (eg, a partnership becoming an LLP) and when firms merge with or acquire other audit registered practices.

Audit Monitoring Report 2021/22

A key part of our role as an improvement regulator is to provide help and support to our firms to ensure you have the tools and resources to help your firm maintain the expected standards. The Audit Monitoring Report is an important resource for firms regulated by ICAEW for audit services.

CPD for the future: reducing risk, enhancing trust

ICAEW’s revised CPD framework will launch later this year. Ahead of the changes, ICAEW President, Julia Penny, tells us why changes to the existing CPD Regulations are necessary, why a risk-based approach to CPD is so important and explains how the latest requirements will improve trust and drive standards forward.

Revamped disciplinary framework to take effect in June

Following Privy Council approval of changes to ICAEW's existing Disciplinary Bye-laws, ICAEW's new disciplinary framework will come into effect from 1 June 2023. We talk to Duncan Wiggetts, Chief Officer for Professional Standards, about next steps and what the changes mean for investigations and disciplinary proceedings.

Richer conversations

Find out how Grant Thornton UK LLP used ICAEW’s AML educational drama All Too Familiar as part of its routine quarterly training for its audit practice.

What does climate change mean for business?

Access a range of articles, research and guidance reporting on climate, climate risk in financial services and incorporating climate change into corporate decision making.

Serve on our regulatory and disciplinary committees

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

Keep updated

Be the first to know when articles like this are released by following us on LinkedIn and subscribing to our monthly newsletter, Regulatory & Conduct News.

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