Technical news in brief June 2021
ICAEW's Audit and Assurance Faculty brings you the latest technical updates on developments in auditing and assurance, financial reporting and ethics. Please note Only Audit and Assurance Faculty members and Faculties Online subscribers have access to these technical updates.
Videos on transforming audit firm culture
Audit and assurance | 25 June 2021
Following the FRC’s international conference on audit firm culture, each of the daily one-hour sessions have been made available as video recordings on:
- Building an audit firm culture that supports high quality audit;
- The role of the audit committee;
- Embedding and measuring organisational culture; and
- Audit firm culture, audit quality and the role of the regulator.
Global sustainability assurance study
Audit and assurance | 23 June 2021
A global benchmarking study of large companies has found a lack of standardisation in the evolving area of sustainability practices and assurance. Published by the International Federation of Accountants, The State of Play in Sustainability Assurance provides a comprehensive global picture and contextualises this analysis, with data on how and where sustainability-related information is reported and how this relates to assurance practices.
Webinars on strengthened international independence standards
Ethics | 17 June 2021
Recordings are available from the International Ethics Standards Board for Accountants (IESBA) of events to assist with adoption and implementation of recently released revisions to the non-assurance services (NAS) and fee-related provisions of the International Code of Ethics for Professional Accountants (including International Independence Standards).
In the videos, IESBA representatives explain key provisions that will come into effect in December 2022.
Global public sector shift to accrual accounting
Financial reporting | 16 June 2021
By 2025, governments in 50% of jurisdictions will report on an accrual basis, according to a report released by the International Federation of Accountants (IFAC) and the Chartered Institute of Public Finance and Accountancy (CIPFA). The 2021 Index Status Report captures information from 165 jurisdictions and was drawn from the International Public Sector Financial Accountability Index, developed by CIPFA and IFAC, which captures use of public financial reporting bases and frameworks by governments around the world.
Quality management implementation guides
Audit and assurance | 14 June 2021
The International Auditing and Assurance Standards Board (IAASB) has released two guides to support implementation of its suite of quality management standards.
The First-time Implementation Guide for International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements and the First-time Implementation Guide for ISQM 2, Engagement Quality Reviews will help stakeholders understand the standards and implement the requirements.
The IAASB will also issue an implementation guide for the International Standard on Auditing 220 (Revised), Quality Management for an Audit of Financial Statements, later in 2021.
FRC amends COVID-19 rent concessions
Financial reporting | 9 June 2021
In response to the continuing impact of the pandemic, the Financial Reporting Council has issued Amendments to FRS 102 and FRS 105 – COVID-19-related rent concessions beyond 30 June 2021. These amendments extend by one year the application of requirements (originally introduced in October 2020) that cover the accounting treatment of temporary rent concessions occurring as a direct consequence of the COVID-19 pandemic.
The amendments apply to rent concessions that reduce only lease payments originally due on or before 30 June 2022, provided the other conditions for applying the requirements are met. The amendments are effective for accounting periods beginning on or after 1 January 2021, with early application permitted.
Webinar on disclosure requirements in IFRS
IAASB finds support for auditor reporting standards
Webinars on new quality management standards
- All You Need to Know about the Firm’s Risk Assessment Process;
- Resources: Expectations for Firms and Engagement Partners;
- What’s New for Firms’ Monitoring and Remediation Processes; and
- Bringing it All Together: Exploring all the Components of a Quality Management System.