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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.

In this section

Audit exemption

Audit exemption eligibility

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.

Appointment and engagement terms

The importance of achieving audit objectives

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.

Auditor independence

Auditor independence refers to the independence of the external auditor. It is characterised by integrity and an objective approach to the audit process. The concept requires the auditor to carry out his or her work freely and in an objective manner.

Risk assessment, internal control and response to risks in external audit

Supporting audit quality

Improving audit quality using root cause analysis

With external audits under unprecedented levels of scrutiny, root cause analysis (RCA) can be a useful tool for those tasked with improving audit quality. The Audit and Assurance Faculty has published this practical paper for its members outlining what RCA is and what auditors need to consider to make the most of this useful tool.

The audit of related parties in practice

In the light of increasing public interest in the quality of audits, the faculty considers that the audit of related parties is an area where further improvements in audit quality and efficiency can be achieved.

Applying professional scepticism and judgement

Scepticism: the practitioners' take

Professional scepticism is central to the work of auditors and yet audit regulators and others continue to express concerns that auditors are not sufficiently sceptical. This report explores what auditors and other stakeholders think about how it can be enhanced and who is responsible for it.

Auditing accounting estimates

Documenting the audit of accounting estimates under ISA 540 (Revised)

Documenting the audit of accounting estimates is important because it provides evidence that the audit complies with ISAs. ISA 540 (Revised) Auditing accounting estimates and related disclosures introduces enhanced documentation requirements and this Audit and Assurance guide provides information and guidance on what needs to be documented, and when, in your audit of accounting estimates.

Inherent risk factors in auditing accounting estimates

ISA 540 (Revised) Auditing accounting estimates and related disclosures introduces the concept of inherent risk factors and requires the auditor to consider the degree to which accounting estimates are affected by these factors in identifying and assessing the risks of material misstatement.

Auditing accounting estimates that give rise to significant risks

When performing an audit of accounting estimates under ISA 540 (Revised) Auditing accounting estimates and related disclosures, an auditor will need to use their own judgement to determine whether any risks of material misstatement identified or assessed in relation to accounting estimates give rise to a significant risk.

Reporting and completion

Reporting in an ISA audit

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.

Audit and assurance guides and helpsheets

Audit and Assurance Faculty Guides and Technical Advisory Services helpsheets prepared by ICAEW technical specialists to assist you in your day-to-day work. We offer practical advice, respond to frequently asked questions and highlight the issues you may need to consider. Audit and Assurance Faculty Guides were formerly known as 'Helpsheets'.

Groups audits

Group audits and recent guidance

All group audits will be affected by recent Financial Reporting Council guidance on review of component auditors’ work. Geoff Swales of PwC explains the requirements of ISA (UK) 600 and outlines the work of the group engagement team.

Auditing groups - subsidiaries

Technical helpsheet issued by to help ICAEW members to understand their responsibilities regarding subsidiaries when auditing the group accounts and the implications on the auditor’s report where access to the financial information of subsidiaries is denied by the parent entity.