PCAOB report details significant improvements across largest audit firms

31 March 2025

Summarising the Public Company Accounting Oversight Board (PCAOB)’s 2024 inspection results, the report highlights significant improvements in aggregate deficiency rates across all categories of firms inspected last year. The individual inspection results for six Global Network Firms were also posted in record time, responding to a need to ensure that critical information reaches stakeholders more quickly. 

IAASB issues implementation guide for the ISA for LCE

27 March 2025

The International Auditing and Assurance Standards Board (IAASB) has released a new first-time implementation guide for the ISA for LCE. As well as providing an overview of the standalone auditing standard designed for audits of financial statements of smaller and less complex entities (LCE), the guide offers examples and comparisons to the ISAs. 

FRC publishes updated letter regarding its position on capital restructuring at UK audit firms

25 March 2025

The original letter issued by the Financial Reporting Council (FRC) in September 2024 set out the regulator’s approach to capital restructuring at UK audit firms. The updated letter reaffirms the FRC’s acknowledgement that such restructuring can generate additional investment to enhance audit quality and drive growth but highlights that firms considering such an action should engage with the regulator at an early stage. 

FRC issues opening material to help SMEs engage with the audit process

19 March 2025

The first in a series of supporting materials to help small and medium-sized entities (SMEs) to engage with the audit process has been released by the Financial Reporting Council (FRC). Forming part of the FRC’s broader campaign to support SMEs in accessing audit services, the document introduces the audit standards and details the standard-setting process.  

PCAOB issues publication to assist auditors with their Form AP

13 March 2025

The Public Company Accounting Oversight Board (PCAOB)’s publication shares key reminders, takeaways from common deficiencies and good practices in relation to audit firms’ Form AP filings. PCAOB-registered firms are required to file a Form AP for each audit report they issue, detailing key engagement information such as details of the engagement partner and audit report.  

Local Audit Leadership responsibilities transferred from FRC to MHCLG

12 February 2025

Following the launch in December 2024 of the Government’s strategy for overhauling the local audit system in England, local audit system leadership responsibilities have been transferred from the Financial Reporting Council (FRC) back to the Ministry of Housing, Communities and Local Government (MHCLG). FRC will continue to support MHCLG in its work to address the local audit backlog.

IAASB and IAF in partnership to support establishment of strong global framework for sustainability assurance

11 February 2025

The International Auditing and Assurance Standards Board (IAASB) and the International Accreditation Forum (IAF) have formalised plans to collaborate to promote consistency and quality of sustainability assurance in practices worldwide. A key aspect of this collaboration includes IAF’s commitment to supporting the use of the IAASB’s International Standard on Sustainability Assurance (ISSA) 5000. 

New PCAOB Report explores considerations for audit firms using the work of specialists

4 February 2025

The Public Company Accounting Oversight Board (PCAOB) has released a spotlight report highlighting the appropriate audit procedures to be performed when using the work of a specialist. The report covers both auditor and company specialists and explores best practice in this area.

IESBA launches public consultation on auditor independence for audits of collective investment vehicles and pension funds

31 March 2025

The International Ethics Standards Board for Accountants (IESBA) has issued a Consultation Paper seeking feedback on whether revisions to the International Code of Ethics for Professional Accountants are necessary to address the independence of auditors when they carry out audits of Collective Investment Vehicles and Pension Funds. Stakeholders are invited to submit their comments electronically through the IESBA website by 30 June.

FRC relocates London Office to Canary Wharf

21 March 2025

The Financial Reporting Council (FRC) has relocated its London office from London Wall in Moorgate to Harbour Exchange in Canary Wharf. Stakeholders are advised to update their records with the new address which can be found here.

FRC releases updates to reflect reporting threshold amendments

21 March 2025

The Financial Reporting Council (FRC) has updated its relevant publications to reflect the Government’s changes to UK reporting thresholds, effective from 6 April 2025. Along with amendments such as updates to FRS 102 and FRS 105, a summary document has been published outlining the changes to the thresholds and key considerations for stakeholders.

FRC publishes three-year Strategy and annual Business Plan and Budget

20 March 2025

The Financial Reporting Council (FRC) has released its Strategy for 2025-28 and its Business Plan and Budget for 2025-26. The strategy highlights the FRC’s commitment to supporting UK economic growth through smart, targeted and proportionate regulation while continuing to encourage high standards in corporate governance, reporting and audit.

IASB announces work has begun on next agenda consultation

18 March 2025

The International Accounting Standards Board (IASB)’s agenda consultation will shape its technical strategy and work plan from 2027. Feedback will be sought on the Board’s strategic direction, the criteria for assessing potential projects to be included in the work plan, and the prioritisation of financial statement matters. For the first time the consultation will also explicitly consider connectivity with the International Sustainability Standards Board (ISSB). The consultation is expected to be published in the fourth quarter of 2025.

Public beta of digital tool to improve access to company data launched by the FRC

10 March 2025

The Financial Reporting Council (FRC) has announced the public beta launch of a tool, Viewer, enabling the public to easily view and analyse Inline eXtensible Business Reporting Language (iXBRL) files filed at Companies House.

IFRS for SMEs Accounting Standard given significant update

27 February 2025

The International Accounting Standards Board (IASB) has issued a major update to the IFRS for SMEs Accounting Standard. This includes a revised model for revenue recognition and an amalgamation of the far value measurement requirements in a single location. The update is effective for annual periods beginning on or after 1 January 2027.

Updated going concern reporting guidance issued by the FRC

25 February 2025

The Financial Reporting Council has updated guidance on the ‘Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks’. The updates follow a consultation and aim to bring together the requirements of company law, accounting standards, auditing standards, and other regulation into one convenient place.

IFRS launches Roadmap Development Tool to support jurisdictions on their ISSB Standard adoption journeys

26 March 2025

The IFRS Foundation has launched the Jurisdictional Roadmap Development Tool to support jurisdictions advance their approaches towards adoption or other use of the International Sustainability Standard Board’s (ISSB) Standards. The Tool, which is interactive, will help jurisdictions make informed decisions on key adoption considerations.

IFAC revisions to International Education Standards to equip professional accountants for sustainability reporting

13 March 2025

To prepare aspiring professional accountants for implementing sustainability-related disclosure and assurance standards, the International Federation of Accountants (IFAC) has made modernising revisions to the International Education Standards to embed sustainability throughout their training. A package of supplementary resources has been developed to accompany the revised standards and two webinars will take place in late April 2025. The finalised revisions will take effect from 1 July 2026.

European Commission simplifies rules on sustainability reporting

26 February 2025

The European Commission has adopted a new ‘Omnibus’ package of proposals to simplify EU rules and relieve administrative burdens for EU businesses. Simplification efforts will be far-reaching and will affect sustainable finance reporting, sustainability due diligence, and EU Taxonomy. For example, around 80% of companies will be removed from the scope of CSRD and burdens on smaller companies making up the value chains of larger companies who must report under the directive will be alleviated.