Companies Act 2006 provides auditors with
Rights and duties to allow them to carry out effective audits
European Commission harmonises CA legislation through (2)
- Issuing directives
- Making regulations
CA 2006 section 407
All members of a group must adopt the same financial reporting framework
FRC carries out
Thematic reviews - focus on issues raised in inspection findings in greater depth
Transparency reports findings (4)
- Lack of awareness they exist
- Firms using them as a marketing tool
- Some issues of non-compliance
- Use of diagrams and infographics good
Mission of International Federation of Accountants (IFAC) (4)
- Development of high quality international standards
- Adoption and implementation of standards
- Building capacity of professional accountancy organisations
- Speaking out on public interest issues
Auditor must be registered with
One of the recognised supervisory bodies
CMA audit (2019) recommendations (4)
- Audit committee scrutiny
- Mandatory joint audit
- Operational split between audit and non audit practices of big four
- Five year review of progress by new regulator
Brydon report (2019) recommendations (6)
- Redefinition of audit and its’ purpose
- Encourage greater engagement of shareholders
- Change in opinion language
- Greater clarity on role of AC
- Improved auditor communication and transparency
- Increased use of technology
FRC Ethical standard changes (4)
- Prohibiting auditors from providing recruitment and remuneration services / helping with management decision making
- Only certain NAS of PIEs allowed by auditors
- Removing concessions for listed small and medium sized entities
- Amendments to requirements regarding long association of audit firms
Practice notes published by FRC
Intended to assist auditors in applying best practise auditing standards to particular circumstances and industries
FRC bulletins
Issued to provide auditors with guidance on new or emerging issues
FRC Ethical standard applied to
All audit and other public interest assurance engagements
