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
IAASB publication highlights how revised standards reinforce professional scepticism
21 July 2025The non-authoritative publication, published by the International Auditing and Assurance Standards Board (IAASB), is designed to help readers understand how the revised Going Concern and Fraud Standards strengthen the consistent application of professional scepticism throughout the audit.
FRC July consultation – Practice Note: The Audit of Small and Medium-sized Enterprises and Market Study Emerging Findings
17 July 2025The Financial Reporting Council (FRC) has launched a consultation on the introduction of a Practice Note to assist auditors in applying the International Standards on Auditing to small and medium-sized enterprises (SMEs). Feedback is welcome on the Practice Note, as well as on the findings from the regulator’s SME audit market study which informed it, until 17 October 2025.
FRC July consultation – PIE Auditor Registration Regulations
17 July 2025The Financial Reporting Council (FRC) is consulting on draft amendments to the Public Interest Entity (PIE) Auditor Registration Regulations. The amendments aim to enhance proportionality and reduce regulatory burden. Comments are welcome until 2 October 2025.
FRC publishes Annual Review of Audit Quality
15 July 2025The Financial Reporting Council (FRC) has published its annual inspection and supervision results of UK Public Interest Entity (PIE) market audit firms. Results indicate continued improvement in audit quality, especially among Tier 1 firms.
Fraud Standard revised by the IAASB
8 July 2025International Standard on Auditing (ISA) 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, has been revised by the International Auditing and Assurance Standards Board (IAASB). The revisions aim to address public interest concerns regarding fraud by strengthening how auditors assess and respond to fraud risks.
FRC reports results of major local audit quality monitoring
8 July 2025The Financial Reporting Council (FRC) has published the results of its annual quality monitoring of major local audits. This comes as the local audit system recovers from delays in the publication of audited accounts in the local government sector. All inspections were assessed as good or limited improvements required.
PCAOB staff publication highlights key reminders on engagement acceptance
7 July 2025The publication, part of the Public Company Accounting Oversight Board (PCAOB)’s Audit Focus series, also shares good practices such as using a ‘’scorecard’’ approach to assessing audit partner capacity and implementing an evaluation team to pre-vet potential engagement prospects.
IAASB releases new FAQ for the ISA for LCE
30 June 2025The International Auditing and Assurance Standards Board (IAASB) has published a new Frequently Asked Questions document for the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).
FRC publishes first guidance on the use of AI in audit
26 June 2025The new guidance, accompanied by a thematic review of the largest firms’ processes to certify new technologies used in audits, offers insights into Financial Reporting Council (FRC)’s documentation expectations in relation to AI-enabled tools.
Ethics
IESBA shares stakeholder feedback from roundtables on firm culture and governance
17 July 2025
The International Ethics Standards Board for Accountants (IESBA) has published a summary of feedback arising from global roundtables held as part of the Board’s Firm Culture and Governance project.
First global Ethics Standards on Tax Planning become effective
1 July 2025
The International Ethics Standards Board for Accountants (IESBA)’s tax planning standards, launched in April 2024, are now effective. The standards are intended to serve as an ethical framework for professional accountants when providing tax planning services.
Financial reporting
FRC publishes 2024/25 Annual Enforcement Review
24 July 2025
The Review, the seventh of its kind, provides an overview of the Financial Reporting Council (FRC)’s case assessment, investigations and enforcement activity over the 2024-2025 period.
FRC July consultation – FRED 87: FRS 102 amendments
17 July 2025
The Financial Reporting Council (FRC) is proposing limited scope amendments to FRS 102 (FRED 87) to follow recent changes to IFRS Accounting Standards. Comments are welcome until 10 October 2025.
FRC July consultation – Draft 2026 Taxonomy Suite
14 July 2025
The Financial Reporting Council (FRC)’s draft version of the 2026 Taxonomy Suite is open for comment until 10 September 2025.
IASB issues revised Practice Statement on management commentary
23 June 2025
The International Accounting Standards Board (IASB) has issued a revised Practice Statement on management commentary, aiming to improve the quality and focus of management commentary and narrative reports accompanying financial statements for investors.
IASB launches review of IFRS 16 Leases
17 June 2025
The review, part of the International Accounting Standards Board (IASB)’s Post-implementation Review of IFRS 16 Leases, will evaluate whether the standard is working as intended for investors, companies, auditors and regulators. Comments are invited on the IASB’s Request for Information until 15 October 2025.
New IFAC resource to support IPSAS implementation
16 June 2025
The International Federation of Accountants (IFAC), in collaboration with the International Public Sector Accounting Standards Board (IPSASB), has published a compilation of tools and resources to help governments and public sector entities adopt and implement IPSAS Standards.
Sustainability
Feedback sought on ISSB amendments by UK Sustainability Disclosure TAC
29 July 2025
As secretariat to the UK Sustainability Disclosure Technical Advisory Committee (TAC), the Financial Reporting Council (FRC) is inviting views on the International Sustainability Standards Board (ISSB)’s proposed amendments to the SASB Standards. Feedback received will inform the UK Sustainability Disclosure TAC’s response to the ISSB’s consultation. Stakeholders are requested to complete a short survey by 29 August 2025.
IFRS Foundation sets out to improve the reporting of uncertainties in the financial statements through climate
24 July 2025
The IFRS Foundation has released near-final illustrative examples using climate-related scenarios to address concerns about inconsistencies between information disclosed in the financial statements and in other reports. The final examples are expected in October 2025.
IESBA and IAASB form expert groups to support global implementation of sustainability standards
10 July 2025
The International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) have announced the establishment of expert implementation groups to support the implementation and application of the Boards’ respective global sustainability standards.
IFRS Foundation publishes educational material to help companies use ISSB Industry-based Guidance when applying ISSB Standards
10 July 2025
The material, published by the IFRS Foundation, aims to assist companies to understand the role of the ISSB industry-based guidance when applying the International Sustainability Standards Board (ISSB) Standards.
ISSB proposes amendments to the SASB Standards and targeted amendments to others
3 July 2025
The amendments proposed by the International Sustainability Standards Board (ISSB) are set out in two exposure drafts. Amendments to the SASB Standards aim to present a comprehensive review of nine prioritised industries and align metrics in a further 41 industries. Targeted amendments to IFRS S2 update industry-based guidance on implementing the standard. Comments are welcome until 30 November 2025.
IFRS Foundation publishes guidance on climate-related transition plan disclosures
23 June 2025
The IFRS Foundation has released new guidance to support entities applying IFRS S2 Climate-related Disclosures, covering disclosures about transition plans an entity may have.
IFAC launches pioneering sustainability tool for SMEs
18 June 2025
In collaboration with the Edinburgh Group (EG), the International Federation of Accountants (IFAC) has released an online interactive tool to help smaller businesses harness the benefits of incorporating sustainability into their strategy and business operations.
IPSASB opts for phased approach to its Climate-related Disclosures project
17 June 2025
Responding to feedback on its Exposure Draft IPSASB SRS ED 1, Climate-related Disclosures, the International Public Sector Accounting Standards Board (IPSASB) has decided to split its Climate-related Disclosures project into two phases. This will result in two separate standards developed over a phased period, allowing additional time to address more complex reporting needs.
IFRS Foundation releases new e-learning modules to support implementation of ISSB Standards
13 June 2025
The IFRS Foundation has launched four new e-learning modules to help companies build a foundational knowledge of the ISSB Standards (IFRS S1 and IFRS S2). These are available for free with an IFRS.org account through the IFRS Sustainability Knowledge Hub.
IFRS Foundation reports strong jurisdictional progress in alignment with ISSB Standards
12 June 2025
The IFRS Foundation has published an initial set of 17 jurisdictional profiles demonstrating a high degree of jurisdictional alignment with the International Sustainability Standards Board (ISSB) Standards. Of the 17 jurisdictions profiled, 14 have set a target of fully adopting the Standards.
Previous tech news in brief