ICAEW's Audit and Assurance Faculty brings you the latest technical updates on developments in auditing and assurance, financial reporting, ethics and sustainability.
Audit and assurance
FRC invites stakeholders to Future of Audit Supervision Strategy roundtables
22 May 2025
The Financial Reporting Council (FRC) is inviting stakeholders to participate in roundtables to discuss its Future of Audit Supervision Strategy. The FRC is keen to hear from auditors, professional bodies, and audit committee members. The roundtables will be taking place throughout June. Click here for more details
New PCAOB publication supports smaller audit firms address challenges of auditing accounting estimates
21 May 2025
The Public Company Accounting Oversight Board (PCAOB) has issued new resource intended to provide auditors from smaller firms with good practices regarding accounting estimates
FRC issues further resources to support SMEs to engage with audit
20 May 2025
As part of its small and medium-sized enterprises (SME) audit campaign, the Financial Reporting Council (FRC) has released further supporting material outlining key considerations and principles that guide a successful audit.
PCAOB shares takeaways from 2024 interviews with audit committee chairs
15 May 2025
The takeaways are presented in a new Spotlight publication which also provides answers to questions audit committee chairs frequently raise with Public Company Accounting Oversight Board (PCAOB) staff. Key topics covered include factors affecting relationships with the audit firm and the use of emerging technologies in the audit.
FRC publishes findings and remedies from NHS audit market study
14 May 2025
The Financial Reporting Council (FRC) has published its final report from its market study into the audit market for NHS providers and Integrated Care Boards. Key issues which may risk future market resilience are identified in the report along with potential short and medium to long-term remedies.
IAASB withdraws ISAE 3410 for assurance engagements on Greenhouse Gas Statements
8 May 2025
The International Auditing and Assurance Standards Board (IAASB) has announced the withdrawal of International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements. This follows the release of the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements which covers all types of sustainability information, including greenhouse gas emissions.
PCAOB makes available new downloadable datasets related to inspection reports
28 April 2025
The Public Company Accounting Oversight Board (PCAOB) has announced the availability of new machine-readable datasets containing information from firm inspection findings. This is in contrast to the individual PDF versions of firm inspection reports that have been available until now. The new datasets contain multiple years of information going back to 2018.
IAASB launches consultation on proposed narrow-scope amendments related to working with experts
25 April 2025
The International Auditing and Assurance Standards Board (IAASB) is seeking comment on proposed narrow-scope amendments to its standards which address recent revisions to the International Ethics Standards Board for Accountants (IESBA) Code related to using the work of an external expert. Feedback is requested by 24 July 2025.
IAASB issues revised Going Concern Standard on Auditing
9 April 2025
The International Auditing and Assurance Standards Board (IAASB) has released its revised International Standard on Auditing 570, Going Concern. Revisions have strengthened the auditors’ risk assessment requirements and have extended the auditor’s evaluation period to at least twelve months from at least twelve months from the date of approval of the financial statements. The revised standard will be effective for audits of financial statements for periods beginning on or after 15 December 2026.
PCAOB issues 2024 Annual Report
1 April 2025
As well as presenting the Public Company Accounting Oversight Board (PCAOB)’s audited financial results and report on internal control over financial reporting, the 2024 annual report discusses how the Board advanced its investor-protection mission during the year.
Ethics
IESBA issues Q&As on Tax Planning and Related Services Standards in IESBA Code
8 May 2025
The International Ethics Standards Board for Accountants (IESBA) has released a questions and answers (Q&A) publication to assist firms, standard setters, and others in adopting and implementing the IESBA Tax Planning and Related Services Standards.
Financial reporting
FRC’s UK Stewardship Code 2026 aims to reduce reporting burdens and focus on value creation
3 June 2025
The Financial Reporting Council (FRC) has published an overhauled UK Stewardship Code which focuses on long-term sustainable value creation and reduces unnecessary reporting. The updated Investor Stewardship Code follows extensive stakeholder consultation which showed strong support for maintaining high stewardship standards while reducing the administrative burden of reporting. It takes effect from 1 January 2026.
FRC issues final report on Company and Organisational Data Explorer (CODEx) project
30 May 2025
The report details how the project, a collaborative effort between the Financial Reporting Council (FRC), Companies House, the Financial Conduct Authority, The Charity Commission, and HMRC, has delivered tools that are already enhancing transparency and empowering data-driven decision-making. Such tools include a public iXBRL viewer that displays tagged data within human-readable reports.
IFRS Foundation publishes new resources to support implementation of the IFRS for SMEs Accounting Standard
28 May 2025
The IFRS Foundation has issued an updated Educational Module and a webcast to assist SMEs in applying Section 11 Financial Instruments of the third edition of the IFRS for SMEs Accounting Standard.
FRC concludes annual review of FRS 101
28 May 2025
The Financial Reporting Council (FRC) has concluded its 2024/25 annual review of FRS 101 ‘Reduced Disclosure Framework’. This cycle’s amendments to the framework relate to developments in IFRS Accounting Standards such as disclosure exemptions from new requirements of IFRS 18 ‘Presentation and Disclosure in Financial Statements.’
IPSASB seeks comment on proposal to align materiality definition across Conceptual Framework and IPSAS Accounting Standards
15 May 2025
The International Public Sector Accounting Standards Board (IPSASB) has released IPSAS Exposure Draft (ED) 93, Definition of Material for public comment. Proposed amendments to IPSAS 1, IPSAS 3, and the Conceptual Framework aim to align the definition of material between the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities and IPSAS Standards. Comments are welcome until 14 July 2025.
FRC publishes stakeholder insights on future of UK digital reporting
15 May 2025
The Financial Reporting Council (FRC)’s discussion paper on ‘’Opportunities for Future UK Digital Reporting’’ has revealed stakeholder support for digital reporting along with calls for a collaborative approach between regulators and preparers to reduce complexity.
IFRS Foundation issues updated material to support understanding and application of going concern standards
13 May 2025
The IFRS Foundation has published an updated version of its educational material dealing with the application of IFRS Accounting Standards related to going concern assessments. The material now reflects recent developments such as the International Accounting Standard Board (IASB)’s issuance of IFRS 18 Presentation and Disclosure in Financial Statements.
IFAC expands efforts to strengthen public sector accountancy in Africa with $1M Global Fund grant
9 May 2025
Both the International Federation of Accountants (IFAC) and the Pan African Federation of Accountants (PAFA) will benefit from the grant as they collaborate to strengthen professional accountancy organisations, develop the public sector accountancy workforce, and improve public financial management systems in Burkina Faso, Ghana, Tanzania, and Togo.
FRC highlights key areas for improvement in relation to structured digital reporting
28 April 2025
The Financial Reporting Council (FRC) has published its 2024/25 review of structured digital reporting. The report reveals that UK listed companies presenting digital annual reports still face challenges with more complex aspects of digital reporting and provides guidance for companies to address these challenges.
FRC announces introduction of quarterly consultation schedule
15 April 2025
The Financial Reporting Council (FRC) has announced the introduction of a quarterly consultation release schedule. This is intended to enable stakeholders to anticipate, prepare for and respond to regulatory developments from the regulator. Click here for more details of the release schedule.
IFAC launches consultation on proposed revisions to its Statements of Membership Obligations
14 April 2025
The International Federation of Accountants (IFAC) is seeking feedback on targeted revisions to its Statements of Membership Obligations (SMOs). The proposed changes are intended to reflect developments in international standards and reinforce the profession’s role in serving the public interest. For more information about the changes and to participate in the consultation, click here. Feedback is welcome until 8 August 2025.
Annual report and financial statements of the IFRS Foundation published
1 April 2025
The annual report and audited financial statements of the IFRS Foundation for the year ended 31 December 2024 have been published. The report highlights, among other things, the progress made by the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB), which sit within the Foundation.
Sustainability
FRC launches consultation on proposed UK version of ISSA 5000
29 May 2025
The Financial Reporting Council (FRC) has issued a consultation on a proposed introduction of International Standard on Sustainability Assurance (ISSA) (UK) 5000, ‘’General Requirements for Sustainability Assurance Engagements.’’ This will align with the international standard and will be for use on a voluntary basis by assurance providers. Comments are welcome until 31 July 2025.
IFRS Foundation issues resources about greenhouse gas emissions disclosure requirements
29 May 2025
Structured in a questions and answers (Q&A) style, the IFRS Foundation’s educational materials address the requirements for an entity to disclose its greenhouse gas emissions in accordance with IFRS S2 Climate-related Disclosures.
IFAC, AICPA and CIMA study shows more global companies are seeking assurance on sustainability reporting
12 May 2025
The Study, a joint effort by the International Federation of Accountants (IFAC), the American Institute of Certified Public Accountants (AICPA), and the Chartered Institute of Management Accountants (CIMA), shows that 73% of large companies from G20 countries obtained assurance on their sustainability disclosures in 2023. That number stood at 51% five years ago. Read more about the Study here.
ISSB launches consultation on targeted amendments to IFRS S2
28 April 2025
The International Sustainability Standards Board (ISSB) has published an Exposure Draft proposing targeted amendments to IFRS S2 Climate-related Disclosures. The amendments are intended to make it easier for companies to apply the standard while retaining the decision-usefulness of information provided to investors. The consultation will be open until 27 June 2025.
IFRS Foundation and IDB agree to work together to promote adoption of Sustainability Disclosure Standards
23 April 2025
The IFRS Foundation and Inter-American Development Bank (IDB) have formalised an agreement to promote the adoption of the IFRS Sustainability Disclosure Standards across Latin America and the Caribbean.
IFRS Foundation and TNFD formalise collaboration to provide capital markets with high-quality nature-related information
9 April 2025
A Memorandum of Understanding has been signed by the IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD). This signals a deepening collaboration between the two organisations as the ISSB considers the TNFD recommendations in its research into the needs of global capital markets for information about nature-related risks and opportunities.
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