Filling the GAAP
Audit & Beyond updates auditors on the UK GAAP resources available from the faculty and other parts ICAEW.
Auditors have not been short of challenges related to the audit of financial statements prepared using the new UK GAAP. Many of these challenges have emerged over the past couple of years as questions from delegates during faculty roadshows (in 2014 and 2015) and during faculty webinars - then featured in articles and Q&As in Audit & Beyond. So in the December 2015/January2016 edition, the Audit & Assurance Faculty (AAF) pulled all of this together with new UK GAAP information from other parts of ICAEW.
As auditors have gained more experience of auditing financial statements prepared using FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, more issues have emerged, creating (what are often) more difficult challenges. “There is a developing wisdom around how to deal with these things,” says independent training consultant and member of the faculty’s Practitioner Services Committee, John Selwood, in his June 2016 AAF webinar The big changes in audit and how to get ahead. This is available as a recording at icaew.com/aafwebinars where members will also find the 2015 webinar Faculty roadshow follow-up - problems auditing the new UK GAAP.
The 2016 webinar offers some insights into how auditors are tackling some of the practical audit issues that are emerging. Potentially problematic areas include:
- obtaining adequate audit evidence of the fair value of derivatives;
This is an extract from an article in the September 2016 edition of Audit & Beyond, the magazine of the Audit and Assurance Faculty.
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