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

FRC reports looks at “Materiality Mindset” 

Financial Reporting | 30 October 2023 

The Financial Reporting Council (FRC) has published a report looking at how companies can improve their corporate reporting for taking a more focused, strategic approach to assessing materiality. Following interviews with companies, investors, advisors and other stakeholders the new report encourages companies to think holistically about what information is material to their stakeholders when preparing annual reports.  

ISSA 5000 FAQ on materiality 

Audit and Assurance | 25 October 2023 

The International Auditing and Assurance Standards Board (IAASB) have provided additional information on materiality matters to help navigate the recently proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.   

IESBA release Q&A to support new international independence standard on group audits  

Audit and Assurance | 23 October 2023 

The International Ethics Standards Board for Accountants (IESBA) released a question and answer publication following the pronouncement of Revisions to the Code Relating to the Definition of Engagement Team and Group Audits.  

FRC consultation on ISA UK) 250 

Audit and Assurance | 18 October 2023 

The Financial Reporting Council (FRC) has launched a consultation to strengthen auditor requirements to detect and report material misstatements from non-compliance with laws and regulations. The FRC is consulting on strengthening both ISA (UK) 250 Section A and ISA (UK) 250 Section B. Deadline for comment 12 January 2024. 

PCAOB staff report sheds light on rising audit deficiencies 

Audit and Assurance | 12 October 2023 

The Public Company Accounting Oversight Board’s (PCAOB) staff have released a new report, Inspection Observations Related to Engagement Quality Reviews. The report covers recent trends in audit deficiencies related to EQRs, provides good practices and reminders to auditors on how to improve quality. 

FRC sets out reporting expectations amidst ongoing economic uncertainty

Financial Reporting | 5 October 2023 

The Financial Reporting Council (FRC) has published its reporting expectations for companies amidst a period of high interest rates, persistent inflation and ongoing economic uncertainty. The most frequently raised issues identified by the FRC related to impairments, and judgements and estimates. 

New edition of IAASB Handbook of International Quality Management 

Audit and Assurance | 16 October 2023

The International Auditing and Assurance Standards Board (IAASB) has released the 2022 edition of the Handbook of international Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements.  

IPSASB issues exposure draft 85, Improvements to IPSAS 

Financial Reporting | 16 October 2023 

The International Public Sector Accounting Standards Board (IPSASB) has issued exposure draft (ED) 85, Improvements to IPSAS, 2023. This ED proposes minor improvements to accrual basis International Public Sector Accounting Standards (IPSAS). Deadline for comment 18 December 2023. 

IAASB enhances Auditor’s Report Transparency on Independence 

Audit and Assurance | 12 October 2023 

The International Auditing and Assurance Standards Board (IAASB) has released amendments to enhance transparency and provide auditors with a clear mechanism to action changes to the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics.    

IPSASB Issue updated chapters of conceptual framework 

Financial Reporting | 11 October 2023 

The International Public Sector Accounting Standards Board (IPSASB) has published an updated chapter of its conceptual framework. The updated chapter, Chapter 3, Qualitative Characteristics, completes the limited scope project to improve its conceptual framework. These are non-authoritative and are effective when published.   

FRC sets out reporting expectations amidst ongoing economic uncertainty 

Financial Reporting | 3 October 2023 

The Financial Reporting Council (FRC) has published its reporting expectations for companies amidst a period of high interest rates, persistent inflation and ongoing economic uncertainty. The most frequently raised issues identified by the FRC related to impairments, and judgements and estimates. 

IASB proposes updates to the IFRS Accounting Taxonomy 2023 

Financial Reporting | 5 October 2023 

The International Accounting Standards Board (IASB) has proposed updates to the IFRS Accounting Taxonomy 2023 to reflect amendments to four IFRS Accounting Standards. Deadline for comment 4 December 2023. 

FRC publishes Revised ISA (UK) 505 External Confirmations 

Audit and Assurance | 3 October 2023 

The Financial Reporting Council (FRC) has published revised ISA (UK) 505 External Confirmations. This is effective for audits of financial statements for periods commencing on or after 15 December 2024.  

IPSASB consults on 2024-2028 strategy and work program 

Financial Reporting | 3 October 2023 

The International Public Sector Accounting Standards Board (IPSASB) has opened a consultation to hear stakeholder feedback on its proposed strategy and work program for the next five years. Deadline for comment 15 February 2024.