Changes to wording of audit reports
Firms need to be careful to ensure that the wording of their audit reports picks up recent changes to the law and FRC requirements.
In particular, there are the new Companies Act 2006 requirements covering the strategic report (for financial years ending on or after 30 September 2013), and for periods commencing on or after 1 October 2012 the scope of the audit (see the revised ISA (UK and Ireland) 700 paragraph 16) and the information needed for entities applying the UK Corporate Governance Code (see revised ISA (UK and Ireland) 700 paragraphs 19A, 19B and 19C).
ICAEW's Audit and Assurance Faculty covers the changes in questions and answers in the December 2013/January 2014 issue of the faculty magazine Audit & Beyond.
The FRC, however, has not updated its audit reports Bulletin 2010/2 for these changes and currently has no immediate plans to do so.
When drafting audit reports, firms should therefore take care not to simply rely on the FRC audit reports Bulletin.