Technical news in brief December 2022
ICAEW's Audit and Assurance Faculty brings you the latest technical updates on developments in auditing and assurance, financial reporting and ethics.
IASB publish its post implementation review of IFRS 9
Financial Reporting | 21 December 2022
The International Accounting Standards Board (IASB) has published its project report concluding the post-implementation review of the classification and measurement requirements in IFRS 9 Financial Instruments.
PCAOB proposes new standard for the auditor’s use of confirmation
Financial Reporting | 20 December 2022
The Public Company Accounting Oversight Board (PCAOB) has issued for public comment a proposed new standard that, if adopted, would strengthen and modernize the requirements for the auditor’s use of confirmation. The board requests public comment on the proposal by 20 February 2023.
FRC publishes feedback statement for ARGA funding consultation
Financial Reporting | 19 December 2022
The Financial Reporting Council (FRC) has issued a feedback statement following a consultation on the principles on which ARGA’s statutory funding arrangements should be based. The statement confirms the proposed approach.
New edition of the IAASB handbook now available
Audit and Assurance | 19 December 2022
The International Auditing and Assurance Standards Board (IAASB) has released a new edition of the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Other Related Services Pronouncements.
IFAC Releases new implementation tool for auditors on auditing ISA 315 (Revised)
Audit and Assurance | 15 December 2022
The International Federation of Accountants (IFAC) released The Risk Identification and Assessment Process: Tips on Implementing ISA 315 (Revised). This tool helps auditors implement the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Auditing (ISA) 315 (Revised), Identifying and Assessing the Risks of Material Misstatement, which is effective for audits of financial statements for periods beginning on or after 15 December 2021.
FRC issued draft amendments to FRS 102
Financial Reporting | 15 December 2022
The Financial Reporting Council (FRC) has issued FRED 82 Draft amendments to FRS 102. FRED 82 proposes a number of changes including a new model or revenue recognition in FRS 102 and 105, a new model of lease accounting in FRS102 and other incremental improvements and clarifications. Comments on the consultation are requested by 30 April 2023.
New IAASB Fact Sheet Helps Auditors Navigate Quality Management for Group Audits
Audit and Assurance | 15 December 2022
The International Auditing and Assurance Standards Board (IAASB) has published a new fact sheet on the interactions between International Standard on Audit (ISA) 200 (Revised), which addresses quality management at the engagement level, and ISA 600 on group audits. The fact sheet highlights aspects of a group audit that may be affected by ISA 220 (Revised) and International Standard on Quality Management 1 which addresses quality management at the firm level.
FRC launches Audit & Assurance Sandbox
Audit and Assurance | 14 December 2022
The Financial Reporting Council (FRC) has launched its Audit & Assurance Sandbox; a collaborative space for approaching issues facing the audit and assurance industry, to support high quality audit and assurance work.
FRC publishes ‘What makes a good Annual Report and Accounts’ report
Financial Reporting | 13 December 2022
The Financial Reporting Council (FRC) has published ‘What makes a good Annual Report and Accounts’ (ARA) report which should provide investors and other stakeholders with clear and relevant information on the company’s performance and prospects to help them make informed investment decisions.
FRC publishes letter on insurance company audits under IFRS 17
Audit and Assurance | 9 December 2022
The Financial Reporting Council (FRC) has published a letter to the Insurance Business Unit Leaders on IFRS 17 becoming effective for annual reporting periods beginning on or after 1 January 2023, replacing the interim standard IFRS 4.
FRC introduces new support measures for smaller audit firms
Audit and Assurance | 7 December 2022
The Financial Reporting Council (FRC) has announced new supervision measures to support smaller audit firms seeking to grow their share of the audit market without compromising audit quality – known as The Scalebox.
UKEB adopts three narrow-scope amendments
Financial Reporting | 6 December 2022
The UK Endorsement Board (UKEB) has adopted three narrow-scope amendments which are effective for annual periods beginning on or after 1 January 2023, with early application permitted. The amendments are with respect to IAS 1 Presentation of Financial Statements, IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, and IAS 12 Income Taxes.
FRC’s new AQIs give greater insight into audit quality
Audit and Assurance | 6 December 2022
The Financial Reporting Council (FRC) has published new firm-level audit quality indicators (AQIs) following support from users of audit services for greater insight into many of the indicators that drive audit quality.
Mandatory registration of PIE audit firms comes into force
Audit and Assurance | 5 December 2022
From 5th December onwards all audit firms and responsible individuals (RIs) who undertake statutory audit work for Public Interest Entities (PIEs) must be registered with the Financial Reporting Council (FRC).
FRC sets out policy plans to increase competition and resilience in audit market
Audit and Assurance | 1 December 2022
The Financial Reporting Council (FRC) has published a policy paper that outlines the regulator’s approach to competition in the audit market. The paper sets out the need for a market that consistently delivers high quality audits and is resilient.