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Technical new in brief June 2022

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

EU reaches agreement on Corporate Sustainability Reporting Directive

Financial Reporting | 30 June 2022
The agreement aims to address shortcomings in the existing rules by introducing more detailed reporting requirements and ensures that large companies are required to report on sustainability issues. The reported sustainability information will have to be independently audited.

Revised guidance for recognising Key Audit Partners for local audit

Audit and Assurance | 30 June 2022
The Financial Reporting Council (FRC) has issued revised guidance for the Recognised Supervisory Bodies (RSBs) on the recognition of Key Audit Partners for local audit. The revised guidance applies to all applications received by the RSBs from 30 June 2022.

FRC publishes professional judgement guidance

Audit and Assurance | 23 June 2022

The Financial Reporting Council (FRC) has published professional judgement guidance for auditors to improve how they exercise professional judgement. The new guidance includes a framework for making professional judgements and a series of illustrative examples.

FRC launches audit quality indicators (AQIs) consultation

Audit and Assurance | 22 June 2022
The Financial Reporting Council (FRC) has issued a consultation on publishing AQIs for the largest UK audit firms, which would provide users of audited information with more detail on audit firms’ efforts to deliver high quality audit. The deadline for comments is 18 August 2022.

PCAOB adopts new requirements for lead auditor’s use of other auditors

Audit and Assurance | 21 June 2022
The Public Company Accounting Oversight Board (PCAOB) has adopted amendments to its auditing standards to strengthen requirements that apply to audits involving multiple audit firms.

Post-implementation review of IFRS 10, 11 and 12

Financial Reporting | 20 June 2022
The International Accounting Standards Board (IASB) has concluded its post-implementation review of IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities. Feedback shows that the requirements set out in the Standards are working as intended with no matters arising being identified as high or medium priority.

Updated FRC guidance on the Strategic Report

Financial Reporting | 16 June 2022

The Financial Reporting Council (FRC) has issued an updated edition of Guidance on the Strategic Report to incorporate new climate-related financial disclosures and other changes in legislation.