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Technical new in brief May 2022

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

FRC inspection findings and good practices

Audit and Assurance | 27 May 2022
The Financial Reporting Council (FRC) has published anonymised key findings and good practices from its Audit Quality Review Team in relation to the 2020/21 audit quality inspections at the seven largest audit firms.

Updated ISAs

Audit and Assurance | 24 May 2022
The Financial Reporting Council (FRC) has released 29 updated ISAs (UK) and updated ISQC (UK) 1. These have been amended to include conforming amendments arising from the revision of ISA (UK) 315 (Revised July 2020) Identifying and Assessing the Risks of Material Misstatement.

FRS 100 Application Guidance

Financial Reporting | 20 May 2022
The Financial Reporting Council (FRC) has issued FRED 80 Draft amendments to FRS 100 Application of Financial Reporting Requirements Application Guidance The Interpretation of Equivalence to reflect changes to company law and decisions on equivalence following the UK’s exit from the EU.

FRC annual review of FRS 101

Financial Reporting | 19 May 2022
The Financial Reporting Council (FRC) has concluded its annual review of FRS 101 for the 2021/22 cycle with no amendments having been made to FRS 101 as a result of the review.

Global baseline of sustainability disclosures

Financial Reporting | 18 May 2022
The International Sustainability Standards Board (ISSB) has outlined the actions required to establish a comprehensive global baseline of sustainability disclosures.

FRC feedback on actuarial aspects of insurance company audits

Audit and Assurance | 18 May 2022
The Financial Reporting Council (FRC) has published a letter to the Insurance Business Unit leaders at the largest eight audit firms in the UK.

UKEB adopts IFRS 17

Financial Reporting | 17 May 2022
The UK Endorsement Board (UKEB) has approved the adoption of the International Accounting Standards Board’s (IASB) IFRS 17 Insurance Contracts for use by UK companies. IFRS 17 is effective for annual periods beginning on or after 1 January 2023. Early adoption is permitted for entities that apply IFRS 9 Financial Instruments on or before the date of initial application of IFRS 17.

IPSASB consultation paper on natural resources

Financial Reporting | 16 May 2022
The International Public Sector Accounting Standards Board (IPSASB) has released a consultation paper which considers issues relating to the recognition, measurement, and presentation of natural resources by public sector entities.

FRC review of discount rates

Financial Reporting | 16 May 2022
The Financial Reporting Council (FRC) has published its thematic review of discount rates. The review includes some case studies and examples of good practice.

Public sector sustainability reporting

Audit and Assurance | 9 May 2022
The International Public Sector Accounting Standards Board (IPSASB) has launched a global consultation on developing a sustainability reporting framework for the public sector. The deadline for comments is 9 September 2022.

IESBA benchmarking report

Ethics | 6 May 2022
The International Ethics Standards Board for Accountants (IESBA) has released a report comparing the International Independence Standards with the relevant rules of the US Securities and Exchange Commission (SEC) and the US Public Company Accounting Oversight Board (PCAOB).

Non-authoritative guidance on fraud

Audit and Assurance | 5 May 2022
The International Auditing and Assurance Standards Board (IAASB) has released new non-authoritative guidance on fraud in an audit of financial statements.

IPSAS 44 Non-current assets held for sale and discontinued operations

Audit and Assurance | 4 May 2022
The International Public Sector Accounting Standards Board (IPSASB) has issued International Public Sector Accounting Standard (IPSAS) 44. The effective date is 1 January 2025 with early application permitted.

Engagement team definition

Audit and Assurance | 2 May 2022
The International Auditing and Assurance Standards Board (IAASB) has released a new fact sheet to help users understand the updated definition of engagement team introduced in the revised ISA 220.