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Audit

The audit area has information and guidance on completing all stages of an audit as well as making the decision around whether or not an audit is required. There are links to technical help, webinars, publications and events as well as audit representations.

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Need to know

Practising Auditor Competency Framework
  • Helpsheets and support
Helping audit professionals understand what the competencies they should develop as they move towards becoming a responsible individual.
Changes to UK audit rules from 1 October 2024
  • Article
Everything you need to know about the forthcoming updates to the UK Audit Regulations related to eligibility and ICAEW’s consultation on audit notification, as well as a roadmap of further changes coming in 2025.
Guide to the auditing implications of the war in Ukraine
  • Helpsheets and support
The situation in Ukraine is changing daily, as is the reaction by the UK government and international community. We take a look at some of the key considerations for auditors.

Latest developments in audit

Guidance and support from Audit and Beyond and the Audit and Assurance Faculty's technical news in brief.
Exclusive Enhancing your firm’s annual SoQM evaluation
  • Article
  • 14 Nov 2024
To assist firms with enhancing their system of quality management and its annual evaluation, Lee Eagling and Gavin Leake share their top tips.
Exclusive Q&A: November 2024
  • Helpsheets and support
  • 14 Nov 2024
ICAEW’s Technical Advisory Service offers answers to some topical questions.
Exclusive Audit and reporting updates: November 2024
  • Helpsheets and support
  • 14 Nov 2024
Honing professional judgement, considering external investment in audit firms, practical webinars on topical issues, and more.
Exclusive Practical pointers on auditing cash flow statements
  • Article
  • 14 Nov 2024
Regulators are sharpening their focus on the audit of cash flow statements. Hugh Morgan shares tips on some common areas of weakness and errors for auditors.
Exclusive The changing nature of group audits
  • Article
  • 14 Nov 2024
Gain insights from auditors on key ISA 600 revisions, changes of emphasis and focus, plus good practices for group and component auditors.
Exclusive Trends in outsourcing and offshoring
  • Article
  • 14 Nov 2024
Outsourcing and offshoring has grown. ICAEW research offers insights into common drivers and key considerations among larger and mid-tier firms.
More

Free elearning: Applying professional judgement in audit

ICAEW has created a practical elearning programme on exercising good professional judgement as an integral part of the audit process, helping them to effectively record judgements and comply with regulations. This free course offers four hours of verifiable CPD. 

Find out more Get started
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Appointment and engagement terms

Exclusive Remote auditing - administration
The spread of the coronavirus pandemic (COVID-19) resulted in the rapid adoption of remote working, including remote auditing techniques. This extract from the Audit and Assurance Faculty Know-How guide 'Remote auditing in practice' focuses on audit administration.
Engagement letters and privacy notices
  • Helpsheets and support
ICAEW has developed guidance for practice firms on what to include in engagement letters. This page provides a series of sample wordings to help you draft your own engagement letters.
Exclusive Agreeing the terms of audit engagements
  • Helpsheets and support
ISA 210 sets out the requirements for agreeing audit engagement terms. This guide looks at the requirements and highlights potential implementation challenges for auditors.
Exclusive The importance of achieving audit objectives
  • Helpsheets and support
ISA 200 highlights the importance of objectives in auditing standards. Understanding ISA 200 is fundamental to understanding the challenge of implementing ISAs. This guide seeks to help auditors understand the overall objectives of the auditor and how they relate to the individual objectives and requirements in ISAs, and the role of professional judgement and scepticism.
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Audit exemption

Audit exemption eligibility
  • Article
Learn whether your organisation qualified for audit exemption for reporting periods beginning on or after 1 January 2016, under the Companies Act 2006 as amended by SI 2015/980. ICAEW's Technical Advisory Service provides guidance covering: group eligibility; eligibility of UK subsidiaries; and audit exemption conditions.
Filing requirements for audit-exempt organisations
  • Listing
Read about preparing financial statements for audit-exempt organisations, including filing requirements
Alternative services for audit-exempt organisations
  • Helpsheets and support
Learn more about other services and forms of assurance that may be of benefit to audit-exempt organisations.
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Audit reform

ICAEW’s Audit and Assurance Faculty unpacks the UK government proposed measures to restore trust in governance, reporting and auditing.

Wates Principles: seven steps towards better governance reporting
  • Article
  • 11 Dec 2024
A recent FRC report studied the quality of governance reporting and adoption of the Wates Principles. Its authors outline where businesses could improve.
Influencing policy to support you: November 2024
  • Article
  • 28 Nov 2024
Following on from the Budget, ICAEW has been considering the government’s proposed industrial strategy, plans on audit reform and proposed changes to apprenticeships.
Influencing policy to support you: October 2024
  • Article
  • 31 Oct 2024
Ahead of the Budget, ICAEW’s policy and public affairs teams communicated key policy recommendations to political stakeholders and reacted to the new consultation on an Industrial Strategy.
Is your sustainability assurance house in order?
  • Article
  • 23 Oct 2024
Sustainability claims made by businesses are increasingly under the spotlight. How should internal audit work with external providers of assurance to ensure material controls are fit for purpose?
Big Four firms conclude operational separation transition
  • Article
  • 11 Oct 2024
The four largest audit firms have finished their transition period of operational separation, according to The Financial Reporting Council (FRC).
Influencing policy to support you: September 2024
  • Article
  • 26 Sep 2024
As parliament returned from the summer recess, ICAEW was finalising its Budget submission – urging immediate action to provide clarity over business taxes and stimulate growth – and gearing up for the political party conference season.
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Auditing accounting estimates

How are accounting estimates picked up in risk assessments?
  • Article
Understanding the entity, its environment and internal controls.
Exclusive Inherent risk factors in auditing accounting estimates
  • Helpsheets and support
What are they and how might they influence your audit of accounting estimates.
The spectrum of inherent risk
  • Article
Understanding the new concept and how this can be applied.
Exclusive Determining high estimation uncertainty and significant risk
  • Helpsheets and support
How to identify whether any risks of material misstatement identified give rise to significant risks.
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Group audits

Guide to the impact of the war in Ukraine on group auditors
  • Helpsheets and support
This guide explores issues faced by UK group auditors with overseas component auditors in light of the Ukraine conflict.
Auditing groups of companies Group financial statements presents challenges to both group and component auditors.
Audit & Beyond archive
  • Hub page
Providing valuable content, best practice and topical issues within the profession.
Preparing an audit report for a group - combined audit report for the group and parent company
  • Helpsheets and support
This guide is designed to explain the main changes that are needed to the audit report of a group compared to that of a company only.
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Audit and Assurance Faculty resources:

As a member of the Audit and Assurance Faculty, you have access to a range of exclusive guidance and support. This includes:

  • Audit and Beyond Events
  • Technical releases
  • Thought leadership
  • Webinars
View all publications and events
ICAEW's Audit and Assurance Faculty can help you stay ahead of the curve with its essential guidance and technical advice.

Professional scepticism and judgement

Professional judgement ICAEW brings together a range of resources on professional judgement to help you develop your skills in approaching difficult judgements.
Exclusive Scepticism and judgement: overcoming impediments
  • Article
Identifying and addressing barriers to the exercise of professional scepticism and judgement can enhance audit quality. Simon Kettlewell shares his tips.
Exclusive Intuitive judgements and how to improve them
  • Article
Tips from auditors and regulators on understanding, managing and mitigating biases that may hinder objective reasoning.
Exclusive Scepticism and challenge
  • Article
All auditors want to apply professional judgement with scepticism and appropriate management challenge, but which key attributes and elements should be the focus of this never-ending quest?
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Quality management

Countdown to ISQM 1 – is your practice ready?
  • Podcast
In this Insights In Focus special episode, we discuss the rollout of the International Standard on Quality Management (ISQM) and what firms need to do before ISQM 1 is implemented on 15 December 2022.
ISQM 1 implementation deadline draws near
  • Article
Not started yet or in need of further help? Don’t despair, ICAEW shares key resources for small practitioners on ISQM implementation to get you on your way.
Overview of standards
  • Helpsheets and support
Key changes, effective date and overview of the Quality Management Standards.
Getting started with ISQM 1
  • Helpsheets and support
Steps firms can take now on their quality management journey.
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Supporting audit quality

Guidance and support for auditors and practices on conducting audits, covering:

  • taking on audits;
  • planning and performing audits;
  • completing audits; and
  • standards and regulations.
View all resources
ICAEW's Library and Information Services can help you find the information you are looking for

Reporting and completion

How to report on irregularities, including fraud, in the auditor’s report – a guide for auditors
  • Helpsheets and support
This Know-How guide from ICAEW’s Audit and Assurance Faculty covers what irregularities are, how the requirements have changed in ISA (UK) 700 (Revised January 2020), what should be reported on in the auditor’s report, and how COVID-19 may impact what is reported.
Reporting and completion
  • Listing
Access practical resources on auditor reporting and completion to help understand auditors’ responsibilities in this area and the requirements of International Standards on Auditing (ISAs). These resources include practical guides and articles on audit reports, and other helpsheets to help deal with the challenges that may arise.
Using an electronic signature to sign an audit report
  • Helpsheets and support
This guide was developed by the Audit and Assurance Faculty with the Business Law Department in July 2020 and is based on the relevant laws and regulations that apply as at 1 July 2020.
Exclusive Reporting in an ISA audit
  • Helpsheets and support
IAASB issued a suite of revised and new auditor reporting standards (ISAs) addressing the audits of complete sets of general purpose financial statements in 2015. The changes mainly focus on increasing transparency about the audit performed. This guide outlines the key requirements for auditors.
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Risk assessment, internal control and response to risks in external audit

Introducing the new risk assessment ISA for 2022 audits
  • Article
14 January 2020: the IAASB has issued ISA 315 (Revised 2019) Identifying and Assessing the Risks of Material Misstatement.
The auditor’s risk assessment and response: understanding and applying the requirements
  • Article
International Standard on Auditing (ISA) 315 (Revised) Identifying and assessing the risks of material misstatement through understanding the entity and its environment explains auditors’ responsibilities in relation to risk assessment and internal control.
Materiality in the audit of financial statements
  • Helpsheets and support
Applying the materiality requirements in International Standards on Auditing (ISAs) can be challenging. As highlighted in inspection findings, reviews and from experience in practice, it’s an area where improvement could be made.
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Technology and audit

What to consider when auditing cryptocurrencies
  • Article
  • 27 Nov 2024
ICAEW’s Digital Assets Working Party has produced a publication for auditors that highlights the common risks to be considered in the audit of cryptocurrencies.
The new Code of Ethics: understanding professional behaviour
  • Article
  • 19 Nov 2024
As part of the updated Code of Ethics for 2025, the provision for professional behaviour has been reworded to reflect the modern world.
Masterclass 3: Making audit sampling more efficient and effective
  • Article
  • 13 Nov 2024
Konrad Bukowski-Kruszyna ACA, Head of Audit Data Analytics, RSM UK outlines how generative AI can help members in practice ensure that audit sampling is being handled correctly.
Masterclass 1: Improving audit documentation
  • Article
  • 30 Oct 2024
Konrad Bukowski-Kruszyna ACA, Head of Audit Data Analytics, RSM UK explains how generative AI can be used for practice members to better understand and document a client’s sales process.
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Data Analytics Certificate

Sign up to the ICAEW Data Analytics Certificate, learn how to provide powerful audit insights to identify anomalies, accounting and control overrides.

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