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Technical new in brief July 2022

ICAEW's Audit and Assurance Faculty brings you the latest technical updates on developments in auditing and assurance, financial reporting and ethics.

FRC launches consultation on funding the Audit, Reporting and Governance Authority 

Audit and Assurance | 29 July 2022 
The Financial Reporting Council (FRC) has launched a consultation on draft proposals for how the new regulator, the Audit, Reporting and Governance Authority (ARGA) should be funded. The deadline for comments is 21 October 2022. 

IAASB First-Time Implementation Guide for identifying and assessing the risk of material misstatement 

Audit and Assurance | 27 July 2022 
The International Auditing and Assurance Standards Board (IAASB) has published a guide for the implementation of ISA 315 (Revised 2019), effective for periods beginning on or after 15 December 2021. 

FRC publishes thematic review of judgements and estimates 

Audit and Assurance | 26 July 2022 
The Financial Reporting Council (FRC) has published its thematic review of judgements and estimates update. The review has identified areas where there is room for further improvement and also includes examples of good practice.   

FRC publishes latest audit quality review results

Audit and Assurance | 20 July 2022
The Financial Reporting Council (FRC) published their annual inspection and supervision results of the largest audit firms (BDO, Deloitte, EY, Grant Thornton, KPMG, Mazars and PwC). Overall 75% of audits inspected were good or required limited improvement.

FRC transition to new regulator

Audit and Assurance | 12 July 2022
The Financial Reporting Council (FRC) has published a Position Paper setting out the next steps to reform the UK’s audit and corporate governance framework, following the government Feedback Statement.

IESBA questions and answers publication

Ethics | 11 July 2022
Staff at the International Ethics Standards Board for Accountants (IESBA) have released a questions and answers publication to highlight key changes to the non-assurance services provisions of the International Code of Ethics for Professional Accountants (including International Independence Standards).

IAASB proposes narrow scope amendments to ISA 700 (Revised) and ISA 260 (Revised)

Audit and Assurance | 6 July 2022
The International Auditing and Assurance Standards Board (IAASB) has proposed narrow scope amendments to International Standard on Auditing 700 (Revised), Forming an Opinion and Reporting on Financial Statements and ISA 260 (Revised), Communication with Those Charged with Governance, to operationalize recently approved changes to the International Code of Ethics for Professional Accountants (including International Independence Standards) related to listed and public interest entities.