QAD reviews of audited FRS 102 financial statements highlight opportunities to improve audit quality. Jeffrey Barnes outlines some common areas of weakness.
The implementation of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland has created ethical, practical and technical challenges for auditors (see box, overleaf ) and entities. Many audit firms will now have completed two cycles of engagements under the new regime, and to supplement our visits, we have reviewed a substantial sample of audited financial statements filed at Companies House.
On the whole our reviews of audited FRS 102 accounts have yielded encouraging results. However, we have found problem areas. This article highlights the most common, looks at some underlying causes and offers tips on how these may be avoided. Auditors should check carefully to ensure they have not overlooked problems in any of the following areas.
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