Guide to the auditing implications of the war in Ukraine
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.
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.
Need to know
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.
Filing requirements for audit-exempt organisations
Read about preparing financial statements for audit-exempt organisations, including filing requirements
Alternative services for audit-exempt organisations
Learn more about other services and forms of assurance that may be of benefit to audit-exempt organisations.
Quality management
Countdown to ISQM 1 – is your practice ready?
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
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
Key changes, effective date and overview of the Quality Management Standards.
Getting started with ISQM 1
Steps firms can take now on their quality management journey.
Applying 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.
Remote auditing – professional scepticism, fraud and error
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 professional scepticism, fraud and error.
Coronavirus considering going concern
The Audit and Assurance Faculty have produced this two part guide for auditors, covering COVID-19 considerations for auditing going concern, and how to report when a material uncertainty relating to going concern exists.
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.
Appointment and engagement terms
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
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.
Agreeing the terms of audit engagements
ISA 210 sets out the requirements for agreeing audit engagement terms. This guide looks at the requirements and highlights potential implementation challenges for auditors.
Risk assessment, internal control and response to risks in external audit
Introducing the new risk assessment ISA for 2022 audits
14 January 2020: the IAASB has issued ISA 315 (Revised 2019) Identifying and Assessing the Risks of Material Misstatement.
Risk assessment and response to risks in external audits understanding and applying the requirements
An overview of the relevant requirements, challenges and developments in risk assessment.
Materiality in the audit of financial statements
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.
Supporting audit quality
Remote auditing – remote team working
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 remote team working, quality control and IT security.
Remote auditing – obtaining evidence
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 obtaining evidence.
Remote auditing in practice
The spread of the coronavirus pandemic (COVID-19) resulted in the rapid adoption of remote working, including remote auditing techniques. This Audit and Assurance Faculty Know-How guide focuses on lessons learned from COVID-19 on the practicalities of audits conducted remotely.
Coronavirus (COVID-19): Considerations for inventory audit testing
ICAEW’s Audit and Assurance Faculty answers members' common practical questions about how to audit inventory given the mandatory closure of many businesses and restrictions of movement across the world.
Auditing accounting estimates
How are accounting estimates picked up in risk assessments?
Understanding the entity, its environment and internal controls.
Inherent risk factors in auditing accounting estimates
What are they and how might they influence your audit of accounting estimates.
The spectrum of inherent risk
Understanding the new concept and how this can be applied.
Determining high estimation uncertainty and significant risk
How to identify whether any risks of material misstatement identified give rise to significant risks.
Reporting and completion
How to report on irregularities, including fraud, in the auditor’s report – a guide for auditors
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.
How to report an emphasis of matter under COVID-19: a guide for auditors
An auditor may conclude that a matter disclosed in the financial statements is so important that it is fundamental to users’ understanding of those financial statements. In this case an emphasis of matter paragraph will be included in the auditor’s report, which draws the reader’s attention to the entity’s disclosures.
Using an electronic signature to sign an audit report
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.
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.
Groups audits
Guide to the impact of the war in Ukraine on group auditors
This guide explores issues faced by UK group auditors with overseas component auditors in light of the Ukraine conflict.
Coronavirus (COVID-19): Considerations for group auditors
This Audit and Assurance Faculty Know-How guide explores COVID-19 issues faced by UK group auditors with overseas component auditors. It offers practical considerations in relation to the work of component auditors to address the requirements in ISAs (UK). It may also be relevant for group auditors in other jurisdictions with similar requirements.
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.
Preparing an audit report for a group - combined audit report for the group and parent company
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.
Coronavirus and audit
Fraud and government support – a guide for auditors
This Know-How guide from ICAEW’s Audit and Assurance Faculty provides some considerations for auditors when assessing the risks of fraud in relation to COVID-19 government support schemes.
Coronavirus considering going concern
The Audit and Assurance Faculty have produced this two part guide for auditors, covering COVID-19 considerations for auditing going concern, and how to report when a material uncertainty relating to going concern exists.
Coronavirus: understanding audit reports
While COVID-19 will affect businesses in different ways and to different degrees, it is likely to have a significant impact on audit reports on company financial statements for the foreseeable future.
Coronavirus (COVID-19): Considerations for inventory audit testing
ICAEW’s Audit and Assurance Faculty answers members' common practical questions about how to audit inventory given the mandatory closure of many businesses and restrictions of movement across the world.