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Technical new in brief December 2021

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

Technology is a double-edged sword

Financial Reporting | 20 December 2021

The Chartered Professional Accountants of Canada (CPA Canada), the Institute of Chartered Accountants of Scotland (ICAS), the International Ethics Standard Board for Accountants (IESBA) and the International Federation of Accountants (IFAC) have released their second publication in a four-part thought leadership series examining the professional accountant’s role in a new technological era.

PCAOB Staff Guidance update

Financial Reporting | 17 December 2021

The Public Company Accounting Oversight Board (PCAOB) has released updates to its staff guidance on Form AP, Auditor Reporting of Certain Audit Participants, in light of the COVID-19 pandemic.

FRC summary of recent reviews

Financial Reporting |17 December 2021

The Financial Reporting Council (FRC) has published the latest list of companies whose reports and accounts have been reviewed by its Corporate Reporting Review function.

PCAOB HFCAA determination report

Financial Reporting |16 December 2021

The Public Company Accounting Oversight Board (PCAOB) has issued a Holding Foreign Companies Accountable Act (HFCAA) determination report regarding PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong.

Proposed update to Initial Application of IFRS 17 and IFRS 9

Financial Reporting |16 December 2021

The International Financial Reporting Standards (IFRS) Foundation has published Proposed Update 3 Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Amendment to IFRS 17). The deadline for comments is 17 January 2022.

Technical Readiness Working Group

Financial Reporting | 14 December 2021

The International Financial Reporting Standards (IFRS) Foundation has released a webcast explaining the recommendations for consideration from the Technical Readiness Working Group (TRWG) to the International Sustainability Standards Board (ISSB).

Transition option to insurers applying IFRS 17

Financial Reporting | 9 December 2021

The International Accounting Standards Board (IASB) has issued a narrow-scope amendment to the transition requirements in IFRS 17 Insurance Contracts. IFRS 17 is effective for annual reporting periods starting on or after 1 January 2023.

The need for positive corporate culture

Financial Reporting | 9 December 2021

The Financial Reporting Council (FRC) has issued a new report entitled Creating positive culture – opportunities and challenges, emphasising the importance of aligning culture with purpose, values and strategy.

Planning an audit using automated tools and techniques

Audit and Assurance | 7 December 2021

The International Auditing and Assurance Standards Board (IAASB) has released frequently asked questions on audit planning to help auditors understand how to plan an audit under ISA 300 when using automated tools and techniques.

Annual review of FRS 101

Financial Reporting | 7 December 2021

The Financial Reporting Council (FRC) has issued Financial Reporting Exposure Draft 79 FRS 101 Reduced Disclosure Framework – 2021/22 cycle, which proposes no amendments to FRS 101 following its latest annual review. The deadline for comments is 1 March 2022.

Audit Enforcement Procedure feedback statement

Audit and Assurance | 7 December 2021

The Financial Reporting Council (FRC) has published a revised Audit Enforcement Procedure (AEP) and feedback statement following a consultation on proposed amendments. The revised AEP came into force on 5 January 2022.

Assurance of sustainability information

Audit and Assurance | 6 December 2021

The International Federation of Accountants (IFAC) has published its vision for high-quality assurance of sustainability information, identifying emerging best practices.

FRC areas of supervisory focus 2022/23

Audit and Assurance | 3 December 2021
The Financial Reporting Council (FRC) has announced its areas of supervisory focus for 2022/23, including priority sectors, for corporate reporting reviews and audit quality inspections

Audit firm culture – a collection of perspectives

Audit and Assurance | 2 December 2021
The Financial Reporting Council (FRC) has published a Collection of Perspectives following on from the FRC Culture Conference held in June 2021.

IFRS Taxonomy 2021 proposed update

Financial Reporting | 2 December 2021
The International Financial Reporting Standards Foundation (IFRS Foundation) has published IFRS Taxonomy 2021 – Proposed Update 2 Technology Update. The proposed changes aim to reflect developments in the technology that underlies or relates to the IFRS Taxonomy. The deadline for comments is 3 January 2022.

FRC encouraged by Stewardship reporting

Financial Reporting | 1 December 2021
The Financial Reporting Council (FRC) has published a report entitled Effective Stewardship Reporting: Examples from 2021 and expectations from 2022, which analyses reports from the first signatories to the revised Code published in September 2021. The report highlights areas of high-quality disclosures, areas where there is still room for improvement and key areas of focus for the future.