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 updates ISAs (UK) for conforming amendments
25 September 2025
The Financial Reporting Council (FRC) has published conforming amendments to the suite of International Standards on Auditing (ISAs) (UK). The amendments have arisen from the revision of several auditing standards in recent years such as ISQM (UK) 1, ISA (UK) 220, and ISA (UK) 600.
PCAOB releases policy statement on evaluating the reliability of external electronic information provided by the company
18 September 202
The Public Company Accounting Oversight Board (PCAOB) has issued a Board policy statement to assist auditors in implementing paragraph .10A of AS 1105, Audit Evidence.
New Innovation and Improvement Hub launched by the FRC
15 September 2025
The Innovation and Improvement Hub, announced by the Financial Reporting Council (FRC), aims to provide a space for industry participants to experiment and discuss issues to drive innovation and support growth. The Hub will initially explore how AI might affect the future of audit and how the length of annual reports and accounts can be reduced.
New PCAOB publication offers insights to auditors of broker-dealers
11 September 2025
The Public Company Accounting Oversight Board (PCAOB) publication, part of a new Audit Focus series, highlights key reminders for auditors from Attestation Standard No. 2, provides perspectives on common deficiencies observed, and shares examples of good practice.
FRC launches new initiative to build capacity and support growth by small UK audit firms
11 September 2025
The Financial Reporting Council (FRC)’s programme will involve inviting small firms looking to increase their presence in the UK PIE audit market to participate in a new Scalebox programme to develop their audit quality and systems of quality management. Participant firms can expect a reduction in certain formal inspection, supervision and registration requirements in 2025/26 and 2026/27.
Study and recommendations regarding emerging technologies presented on PCAOB website
3 September 2025
The Technology Innovation Alliance (TIA) Working Group was tasked by the Public Company Accounting Oversight Board (PCAOB) with providing the Board with a study on the use of emerging technologies by auditors and preparers and strategic ideas for how the Board might promote the use of technology in auditing.
IAASB adopts IESBA’s definition of publicly traded entity
1 September 2025
The International Auditing and Assurance Standards Board (IAASB) has released narrow scope amendments adopting the same definition of publicly traded entity in its standards as adopted in the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics. The amendments will be effective for engagements for periods beginning on or after 15 December 2026.
PCAOB postpones effective date of QC 1000
28 August 2025
The Public Company Accounting Oversight Board (PCAOB) has announced that the effective date for QC 1000, A Firm’s System of Quality Control, will be postponed by one year, to 15 December 2026. This is after feedback was received that some firms have encountered implementation challenges.
PCAOB launches smaller firm resource group
26 August 2025
The advisory group of smaller audit firm professionals will advise the Public Company Accounting Oversight Board (PCAOB) on the unique needs and experiences of smaller audit firms.
Ethics
IESBA releases guidance to support adoption and implementation of standards on external experts and sustainability assurance
8 September 2025
The International Ethics Standards Board for Accountants (IESBA) has published two new publications to support global adoption and implementation of its ethics standards on Using the Work of an External Expert and International Ethics Standards for Sustainability Assurance.
Financial reporting
FRC publishes Annual Review of Corporate Reporting
30 September 2025
The Review, published by the Financial Reporting Council (FRC) shows that the quality of corporate reporting across FTSE 350 companies has been maintained during the 2024/25 monitoring cycle. A quality gap between FTSE 350 companies and other companies remains.
New educational materials available to support implementation of the IFRS for SMEs Accounting Standard
25 September 2025
The package of materials, published by the IFRS Foundation, is intended to support stakeholders learning about or implementing the IFRS for SMEs Accounting Standard.
FRC issues new factsheets to support FRS 102 preparers
9 September 2025
The two factsheets, published by the Financial Reporting Council (FRC) and focusing on financial statement presentation and the going concern basis of accounting for small companies and micro-entities, aim to support entities in applying FRS 102.
IASB completes planned catch-up work on standard permitting reduced disclosures for subsidiaries without public accountability
21 August 2025
IFRS 19, issued in May 2024, allows eligible subsidiaries to apply IFRS Accounting Standards with reduced disclosure requirements for other Standards or amendments issued up to February 2021. The International Accounting Standards Board (IASB)’s new amendments reduce requirements for Standards and amendments issued more recently.
FRC confirms latest successful signatories to UK Stewardship Code
13 August 2025
The Financial Reporting Council (FRC) has announced the latest successful signatories to the UK Stewardship Code 2020, increasing the total number of Code signatories to 299 representing £56 trillion assets under management. As the FRC implements the revised UK Stewardship Code 2026, existing signatories will have the opportunity to report under the new framework next year.
Sustainability
IAASB releases new resources to support ISSA 5000 adoption and implementation
14 August 2025
One of the resources, published by the International Auditing and Assurance Standards Board (IAASB) comprises extracts containing International Standard on Sustainability Assurance (ISSA) 5000 material relevant to limited assurance engagements and, separately, reasonable assurance engagements. The other is an FAQs document which aims to support a smooth transition and consistent application of the new standard.
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