In light of this, the APB issued new UK standards to replace the existing ISAs (UK and Ireland) and ISQC (UK and Ireland) 1. The publication of these new standards was announced on 13 October 2009, when the APB issued a press release entitled 'The APB issues new ISAs (UK and Ireland)'. The APB also issued a staff paper, 'Summary of changes in the new ISAs (UK and Ireland)', which was intended to assist those seeking to understand the changes. For more information on UK-adopted international auditing standards, please see our separate guide. For listed entities and public interest entities, the auditor also provides those charged with governance with a statement that the auditor has complied with relevant ethical requirements regarding independence, including the FRC’s Ethical Standard, and communicates with them all relationships and other matters that may reasonably be thought to bear on the auditor’s independence, and where applicable, related safeguards. ISA (UK) 402 (Updated May 2022) Audit Considerations Relating to an Entity Using a Service Organisation In light of the Government's withdrawal of proposed secondary legislation laid in July covering the Audit & Assurance Policy, the Resilience Statement, the Material Fraud Statement and enhanced reporting on distributions, the Financial Reporting Council (FRC) has issued a policy announcement confirming that the update to the UK Corporate Governance Code ("the Code") will go ahead but will recognise the wider debate about business reporting requirements and burdens across the economy.

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 and to clarify instances auditors should report such breaches, and other significant matters, to the relevant regulators. Individuals and audit firms that are approved to carry out statutory audits in Ireland are required to conduct Irish statutory audits in accordance with the Auditing Framework for Ireland and the implementation dates specified by IAASA. The Financial Reporting Council (FRC) has launched its Audit & Assurance Sandbox, intended to be a collaborative space for approaching issues facing the audit and assurance industry, to support high quality audit and assurance work. An introduction to the principles and practice of auditing, with a chapter on sampling and materiality that covers designing and selecting the sample for testing, sample selection methodology, evaluation of test results and a comparison of statistical and non-statistical sampling. Find more resources

The ISAs (UK) that have been updated in May 2022 incorporate conforming amendments made as a result of the revision of ISA (UK) 315 (Revised July 2020). These amendments become effective at the same time as ISA (UK) 315 (Revised July 2020) i.e. for audits of financial statements for periods beginning on or after 15 December 2021. ISAE (UK) 3000 is effective for assurance reports dated on or after 15 September 2020. What’s new about the UK standard compared to the international standard? ISA 600, Special Considerations-Audits of Group Financial Statements (Including the Work of Component Auditors) ISA 315: Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment

Given these differences in scope, standards and evolution in approach, it is entirely plausible that in many organisations there will not be much internal audit work upon which the external auditor can routinely rely to reduce their input and even where this does exist there is a value decision over whether the time it takes to properly assess internal audit’s work is disproportionate to the benefit realised. Both sets of auditors should be clear with Executive and Audit Committee to explain the reason and justification; avoiding misconception.

Consultation papers and Exposure Drafts

Requires external audit to understand the nature of the internal audit function’s responsibilities, status and activities; recognising that this can vary widely across organisations. From a professional perspective team compliance with IIA IPPF 1100 Independence & Objectivity will provide comfort to the external auditor and therefore increase the likelihood of being able to use internal audit outputs. But it is also important to recognise that the roles of internal and external audit are quite different; external audit’s role and responsibilities are defined, whereas internal audit’s activities may stretch far and wide across an organisation from an efficiency, effectiveness and economy perspective and therefore may not be directly or sufficiently relevant to financial reporting, upon which external audit is focused. a number of subject matter specific assurance standards also issued by IAASB have not been adopted by the FRC, but may be applied voluntarily. Where a subject matter specific assurance standard is applied to the subject matter of a particular engagement it is applied in addition to ISAE 3000 (Revised). In such cases, complying with the ISAE (UK) 3000 would achieve the need to comply with the international standard.

ISA 200: Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing The reality of the world is that external audit have a rather narrow and defined responsibility in respect of the Financial Statements; whereas modern internal audit is increasingly looking beyond simple compliance with financial policy and into the much wider reaches of governance, risk management, and internal controls from an efficiency, effectiveness and economy perspective across the breadth of an organisation’s activities and associated risks. requiring inherent and control risk to be assessed separately (the extant standard permits a combined assessment); the financial statements adequately refer to or describe the applicable financial reporting framework; Implementing GAAS (Generally Accepted Auditing Standards) provides guidance on current UK auditing standards and the supporting Practice Notes, Bulletins and other material. The annually updated title includes a chapter on audit sampling covering the use of sampling, risk assessment, design of the sample, errors, evaluating results and statistical and non-statistical sampling.

Current UK auditing standards

Although new standards had been issued, the older guidance was not entirely replaced at this time. The initial volume of Auditing standards and guidelines published in 1980 stated that the existing pronouncements on audit matters approved by the respective councils of the accountancy bodies should be considered by their members as having the same status as auditing guidelines and would remain in force until withdrawn. The Library holds 33 guidelines and their supplements/addendums in its collection, along with copies of supplementary statements, and several consolidated volumes of summaries and full texts. Information on our holdings of all of the above can be found on the Library catalogue, via the link below: ISA (UK) 240 (Revised June 2016) The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements (January 2020) The introduction of five new inherent risk factors to aid in risk assessment; subjectivity, complexity, uncertainty, change and susceptibility to misstatement due to management bias or fraud. ISA (UK) 315 (Revised July 2020) Identifying and Assessing the Risks of Material Misstatement (July 2020)

Identifying and assessing risk under ISA 315 (Revised)- 17 September 2020: This webinar looks at the key changes in the standard and to help you prepare for implementation. Concludes on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s (or where relevant, the group’s) ability to continue as a going concern. If the auditor concludes that a material uncertainty exists, the auditor is required to draw attention in the auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. The auditor’s conclusions are based on the audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the entity (or where relevant, the group) to cease to continue as a going concern. The Auditor’s Statutory Right and Duty to Report to Regulators of Public Interest Entities and Regulators of Other Entities in the Financial Sector As well as historical handbooks, the Library also holds print copies of a number of individual IAPC and IAASB pronouncements issued since 1991, along with exposure drafts of standards: The International Standards on Auditing (UK and Ireland) (ISAs (UK and Ireland)) and International Standard on Quality Control (UK and Ireland) (ISQC (UK and Ireland)) are based on the International Standards on Auditing (ISAs) and International Standard on Quality Control (ISQC) of the same titles that have been issued by the International Auditing and Assurance Standards Board (IAASB), published by the International Federation of Accountants (IFAC) in 2009, and are used with the permission of IFAC.

Use, adoption and adaptation of international auditing standards

Since December 2004, the FRC has issued adapted versions of International Standards on Auditing (originally issued by the IAASB) for use in the UK. These are known as International Standards on Auditing (UK) — or ISAs (UK) — and contain supplementary material not found in the original IAASB standards. ISAs (UK) are updated or revised quite frequently, and have gone through a number of iterations.