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John Selwood's audit clinic
John looks at the FRC’s Revised Ethical Standard and answers questions for and from auditors.
The Financial Reporting Council (FRC) published revised ethical and auditing standards at the end of 2019. The FRC’s Revised Ethical Standard 2019 (Revised ES 2019) applies, in the most part, from 15 March 2020. The exception is paragraph 5.42, which applies to periods commencing on or after 15 December 2020. It states: “An audit firm undertaking the statutory audit of an entity relevant to an engagement, which is not a public interest entity but meets the definition for an other entity of public interest, shall follow the requirements in paragraphs 5.40-5.41.”
It’s always a good idea to read a new standard carefully and thoroughly. There are many small changes in the Revised ES 2019 and some of these seem to be causing confusion, particularly around matters relating to the provision of non-audit services to audit clients.