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Peeling the onion

The transition to FRS 102 will be challenging for auditors – and audit entities. Audit & Beyond sought John Selwood’s expertise to peel back the layers of complexity.

When the Audit and Assurance Faculty started thinking about the new UK GAAP and its audit implications, a quick webinar seemed like an appropriate response. The thinking for this led to TECH 13/14 AAF Issues for auditors arising from the implementation of FRS 102, which led to the 2014 roadshow series. "I don't think I've ever presented a training course that tried to bust out of its three hours quite as much as that roadshow did," says John Selwood, who was the main speaker.

It's a trend that may continue. "The challenge for accounts preparers and auditors is that new issues seem to emerge all the time," he says. This seems particularly the case for practical issues. So, since the 2014 roadshows, Selwood has picked up on a number of FRS 102-related audit issues in several of his Audit and Beyond Q&As, and his March 2015 webinar, which addressed some of the new standard's implications for auditors.


Many entities will ask their auditors for support with the transition to FRS 102, but this can create ethical problems. "Auditor’s could encounter some pretty substantial threats to their independence," says Selwood. For example, auditors will face significant self-review threats if they deliver services.

This is an extract from an article in the June 2015 edition of Audit & Beyond, the magazine of the Audit and Assurance Faculty.

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