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.
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.
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.
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.
This ICAEW Know-How article was created by the Audit and Assurance Faculty. It offers practical considerations in relation to the work of component auditors in light of coronavirus (COVID-19) to address the requirements in ISAs (UK). It may also be relevant for group auditors in other jurisdictions.
ICAEW’s Audit and Assurance Faculty shares a recording of its recent webcast on the challenges faced when auditing going concern in light of the COVID-19 pandemic.
ICAEW’s Audit and Assurance Faculty shares a recording of its recent webcast looking at the challenges in accounting for and auditing revenue as a result of the COVID-19 pandemic.
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.
Read about preparing financial statements for audit-exempt organisations, including filing requirements
Learn more about other services and forms of assurance that may be of benefit to audit-exempt organisations.
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.
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.
ISA 210 sets out the requirements for agreeing audit engagement terms. This guide looks at the requirements and highlights potential implementation challenges for auditors.
14 January 2020: the IAASB has issued ISA 315 (Revised 2019) Identifying and Assessing the Risks of Material Misstatement.
An overview of the relevant requirements, challenges and developments in risk assessment.
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.
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.
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.
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.
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.
A guide to the developments, opportunities and challenges that data analytics provides for auditors.
Don’t step any closer to audit data analytics without reading these tips and insights from Lisa Leighton of BHP Chartered Accountants.
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.
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.
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.
This webinar looks at the consequences of an auditor lacking scepticism in terms of bad monitoring visits or claims against the firm.
For small and medium-sized entities, there are three key areas that need to be considered. Here, seasoned file reviewer Jeremy Williams offers practical pointers on displaying these key audit skills and judgements.
There are many documentation requirements in International Standards on Auditing but the extent of documentation of judgement is a particularly critical area for auditors. This guide helps auditors understand why professional judgement is important and the extent to which they need to document it.
ISA 540 (Revised) Auditing accounting estimates and related disclosures is effective for audits of financial statements for periods beginning on or after 15 December 2019.
In this 20 minute webcast, Louise Sharp, Manager, International Standards covers the key enhancements in, and potential challenges introduced by, ISA 540 (Revised) Auditing accounting estimates and related disclosures. The revised standard is effective for audits of financial statements for periods beginning on or after 15 December 2019.
The IAASB has issued ISA 540 (Revised) Auditing accounting estimates and related disclosures. There are some changes and new requirements in ISA 540 (Revised) that are likely to prove more challenging for auditors to implement.
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.
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.
Accounting estimates are increasingly common in financial statements and, by their very nature, can be challenging for auditors to audit. This guide looks at the key requirements in ISA 540 (Revised) Auditing accounting estimates and related disclosures and deals with some of the potential challenges.
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.
For audits of financial periods commencing on or after 15 December 2019, auditors (where ISAs (UK) apply) are required to explain in the auditor’s report to what extent the audit was considered capable of detecting irregularities, including fraud. This was already a requirement for auditors of public interest entities (PIEs) in ISA (UK) 700 (Revised June 2016).
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.
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.
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.
This ICAEW Know-How article was created by the Audit and Assurance Faculty. It offers practical considerations in relation to the work of component auditors in light of coronavirus (COVID-19) to address the requirements in ISAs (UK). It may also be relevant for group auditors in other jurisdictions.
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.
International standards on auditing (ISAs) apply to the audits of groups of companies and ISA 600 specifically deals with special considerations that apply to group audits.
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.
This guide is designed to explain the main changes that are needed to the separate audit reports of a group and parent company compared to that of a company only.