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Auditing Standards
Author: Auditing Practices Board
Publisher: Bloomsbury Professional
Copyright: 2024 Auditing Practices Board
Auditing Standards
The full text of all International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. Also includes Ethical Standards issued by the Auditing Practices Board.
© Financial Reporting Council Ltd (FRC). Adapted and reproduced with the kind permission of the Financial Reporting Council. All rights reserved. For further information, please visit www.frc.org.uk or call +44 (0)20 7492 2300.
Last update: January 2024
Contents
- Close sectionPart 1: Ethical Standards
- Close sectionRevised Ethical Standard 2024
- Preface
- Introduction
- Close sectionPart A
- Close sectionPart B
- Section 1 – General Requirements and Guidance
- Section 2 – Financial, Business, Employment and Personal Relationships
- Section 3 – Long Association with Engagements and with Entities Relevant to Engagements
- Section 4 – Fees, Remuneration and Evaluation Policies, Gifts and Hospitality, Litigation
- Section 5 – Non-audit / Additional Services
- Section B- Approach to Non-audit / Additional Services Provided to Public Interest Entities
- SECTION C- Approach to Non-audit / Additional Services Provided in any Statutory Audit Engagement
- Section 6 – Provisions Available for Audits of Small Entities
- APPENDIX A: Illustrative template for communicating information on audit and non-audit services provided to the group
- Appendix B: Prohibited Non-audit Services for Public Interest Entities
- Appendix C: The Auditor’s Provision of Restructuring Services to Public Interest Entity Participants in Bank Lending or Bond Funded Syndicates
- Close sectionISQC (UK) 1 (Revised November 2019): Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements (Updated May 2022)
- Introduction
- Objective
- Definitions
- Close sectionRequirements
- Applying, and Complying with, Relevant Requirements
- Elements of a System of Quality Control
- Leadership Responsibilities for Quality within the Firm
- Relevant Ethical Requirements
- Acceptance and Continuance of Client Relationships and Specific Engagements
- Human Resources
- Engagement Performance
- Monitoring
- Documentation of the System of Quality Control
- Close sectionApplication and Other Explanatory Material
- Applying, and Complying with, Relevant Requirements
- Elements of a System of Quality Control (Ref: Para. 17)
- Leadership Responsibilities for Quality within the Firm
- Relevant Ethical Requirements
- Acceptance and Continuance of Client Relationships and Specific Engagements
- Human Resources (Ref: Para. 29)
- Engagement Performance
- Monitoring
- Documentation of the System of Quality Control (Ref: Para. 57)
- Appendix
- Close sectionRevised Ethical Standard 2024
- Close sectionPart 2: ISAs (UK and Ireland)
- Close sectionISA (UK) 200 (Revised June 2016) (Updated January 2020): Overall objectives of the independent auditor and the conduct of an audit in accordance with international standards on auditing (uk)
- Close sectionInternational Standard on Auditing (UK) 210 (Revised June 2016): Agreeing the Terms of Audit Engagements (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 220 (Revised November 2019): Quality Control for an Audit of Financial Statements (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 230 (Revised June 2016): Audit Documentation (Updated May 2022)
- Close sectionISA (UK) 240 (Revised June 2016) (Updated January 2020): The auditor’s responsibilities relating to fraud in an audit of financial statements (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 240 (Revised May 2021): The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements
- Close sectionInternational Standard on Auditing (UK) 240 (Revised May 2021): The auditor's responsibilities relating to fraud in an audit of financial statements
- Introduction
- Objectives
- Definitions
- Requirements
- Application and Other Explanatory Material
- Appendix 1: Examples of Fraud Risk Factors (Ref: Para. A25)
- Appendix 2: Examples of Possible Audit Procedures to Address the Assessed Risks of Material Misstatement Due to Fraud (Ref: Para. A40)
- Appendix 3: Examples of Circumstances that Indicate the Possibility of Fraud (Ref: Para. A49)
- Close sectionInternational Standard on Auditing (UK) 250 (Revised November 2019): Section A—Consideration of Laws and Regulations in an Audit of Financial Statements (Updated May 2022)
- Close sectionISA (UK) 250 (Revised November 2019): Section B — The auditor’s statutory right and duty to report to regulators of public interest entities and regulators of other entities in the financial sector
- Close sectionInternational Standard on Auditing (UK) 260 (Revised November 2019): Communication With Those Charged With Governance (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 265: Communicating Deficiencies in Internal Control to Those Charged With Governance and Management (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 300 (Revised June 2016): Planning an Audit of Financial Statements (Updated May 2022)
- Close sectionISA (UK) 315 (Revised July 2020): Identifying and Assessing the Risks of Material Misstatement
- Introduction
- Objective
- Definitions
- Requirements
- Close sectionApplication and Other Explanatory Material
- Close sectionCONFORMING AND CONSEQUENTIAL AMENDMENTS TO OTHER ISAs (UK)
- ISA (UK) 200 (Revised June 2016), Overall objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing
- ISA (UK) 210 (Revised June 2016), Agreeing the Terms of Audit Engagements
- ISA (UK) 230 (Revised June 2016), Audit Documentation
- ISA (UK) 250 Section A (Revised November 2019), Consideration of Laws and Regulations in an Audit of Financial Statements
- ISA (UK) 260 (Revised November 2019), Communication with Those Charged with Governance
- ISA (UK) 265, Communicating Deficiencies in Internal Control to Those Charged with Governance
- ISA (UK) 240 (Revised June 2016), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
- ISA (UK) 720 (Revised November 2019), The Auditor’s Responsibilities Relating to Other Information
- Close sectionISA (UK) 315 (Revised June 2016): Identifying and assessing the risks of material misstatement through understanding the entity and its environment
- Close sectionInternational Standard on Auditing (UK) 320 (Revised June 2016): Materiality in Planning and Performing an Audit (Updated May 2022)
- Close sectionISA (UK and Ireland) 330: The Auditor's Responses To Assessed Risks (Updated May 2022)
- Close sectionISA (UK) 330 (Revised June 2016): The Auditor's Responses To Assessed Risks
- Close sectionInternational Standard On Auditing (UK) 330 (Revised July 2017): The Auditor’s Responses to Assessed Risks
- Close sectionInternational Standard on Auditing (UK) 402: Audit Considerations Relating to an Entity Using a Service Organization (Updated May 2022)
- Close sectionInternational Standard On Auditing (UK) 450 (Revised June 2016): Evaluation of Misstatements Identified During the Audit (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 500: Audit Evidence (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 501: Audit Evidence—Specific Considerations for Selected Items (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 505 (Revised October 2023): External Confirmations
- Close sectionInternational Standard on Auditing (UK) 505: External Confirmations (Updated May 2022)
- Close sectionISA (UK) 510 (Revised June 2016): Initial audit engagements - opening balances
- Close sectionInternational Standard on Auditing (UK) 520: Analytical Procedures (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 530: Audit Sampling (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 540 (Revised December 2018): Auditing Accounting Estimates and Related Disclosures (Updated May 2022)
- Close sectionISA (UK and Ireland) 550: Related parties (Updated May 2022)
- Introduction (¶1-8)
- Objectives (¶9)
- Definitions (¶10)
- Requirements (¶11-17)
- Close sectionApplication and Other Explanatory Material
- Responsibilities of the Auditor
- Definition of a Related Party
- Risk Assessment Procedures and Related Activities
- Identification and Assessment of the Risks of Material Misstatement Associated with Related Party Relationships and Transactions
- Evaluation of the Accounting for and Disclosure of Identified Related Party Relationships and Transactions
- Written Representations
- Communication with Those Charged with Governance
- Close sectionInternational Standard on Auditing (UK) 550: Related Parties
- Close sectionISA (UK and Ireland) 560: Subsequent events
- Introduction (¶1-3)
- Objectives (¶4)
- Definitions (¶5)
- Requirements (¶6-17)
- Close sectionApplication and Other Explanatory Material
- Scope of this ISA (UK and Ireland)
- Definitions
- Events Occurring between the Date of the Financial Statements and the Date of the Auditor's Report
- Facts Which Become Known to the Auditor after the Date of the Auditor's Report but before the Date the Financial Statements Are Issued
- Facts Which Become Known to the Auditor after the Financial Statements Have Been Issued
- Close sectionInternational Standard on Auditing (UK) 570 (Revised September 2019): Going Concern (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 580: Written Representations (Updated May 2022)
- Close sectionISA (UK) 600 (Revised November 2019): Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)
- Close sectionInternational Standard on Auditing (UK) 600 (Revised September 2022): Special considerations—Audits of group financial statements (Including the work of component auditors) (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 610 (Revised June 2013): Using the Work of Internal Auditors (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 620 (Revised November 2019): Using the Work of an Auditor’s Expert (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 700 (Revised November 2019): Forming an opinion and reporting on Financial Statements (Updated May 2022)
- Close sectionInternational Standard on Auditing (UK) 701 (Revised November 2019): Communicating Key Audit Matters in the Independent Auditor’s Report (Updated May 2022)
- Close sectionISA (UK) 705 (Revised June 2016): Modifications to the opinion in the independent auditor's report
- Introduction (¶1-3)
- Objective (¶4)
- Definitions (¶5)
- Requirements (¶6-28)
- Form and Content of the Auditor's Report When the Opinion Is Modified
- Communication with Those Charged with Governance
- Close sectionApplication and Other Explanatory Material
- Types of Modified Opinions
- Nature of Material Misstatements
- Nature of an Inability to Obtain Sufficient Appropriate Audit Evidence
- Consequence of an Inability to Obtain Sufficient Appropriate Audit Evidence Due to a Management-Imposed Limitation after the Auditor Has Accepted the Engagement
- Other Considerations Relating to an Adverse Opinion or Disclaimer of Opinion
- Form and Content of the Auditor's Report When the Opinion Is Modified
- Appendix: Illustrations of Auditor’s Reports with Modifications to the Opinion
- Close sectionISA (UK) 706 (Revised June 2016): Emphasis of matter paragraphs and other matter paragraphs in the independent auditor's report
- Introduction (¶1-3)
- Objective (¶6)
- Definitions (¶7)
- Requirements (¶8-12)
- Application and Other Explanatory Material
- Appendix 1: List of ISAs (UK) Containing Requirements for Emphasis of Matter Paragraphs
- Appendix 2: List of ISAs (UK) Containing Requirements for Other Matter Paragraphs
- Appendix 3: Illustration of an Auditor’s Report that Includes a Key Audit Matters Section, an Emphasis of Matter Paragraph, and an Other Matter Paragraph
- Appendix 4: Illustration of an Auditor’s Report Containing a Qualified Opinion Due to a Departure from the Applicable Financial Reporting Framework and that Includes an Emphasis of Matter Paragraph
- Close sectionISA (UK and Ireland) 710: Comparative Information - Corresponding Figures And Comparative Financial Statements
- Close sectionInternational Standard on Auditing (UK) 720 (Revised November 2019): The Auditor’s Responsibilities Relating to Other Information (Updated May 2022)
- Close sectionISA (UK) 800 (Revised): Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks
- Close sectionISA (UK) 805 (Revised): Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
- Close sectionClient Asset Assurance Standard
- Preface
- Introduction
- OBJECTIVES
- Definitions
- Requirements Applicable To All Client Asset Engagements
- Requirements Applicable To The Expression Of Reasonable Assurance Opinions In A Cass Auditor’S Report
- Requirements Applicable To The Expression Of Limited Assurance Opinions Where A Firm Claims Not To Hold Client Assets
- The Expression Of Hybrid Opinions
- Requirements Applicable To The Provision Of Reasonable Assurance With Respect To Special Reports
- Requirements Applicable To Cass Auditor Confirmations In Connection With Non-Statutory Client Money Trusts
- Appendix 1: Overview Of A Reasonable Assurance Process For A Legal Entity
- Appendix 2: Illustrative Qualified Opinion In A Reasonable Assurance Report On Client Assets
- Appendix 3: Illustrative Adverse Opinion In A Reasonable Assurance Report On Client Assets
- Appendix 4: Illustrative Unmodified Opinion In A Reasonable Assurance Report On Client Assets
- Illustrative Unmodified Opinion In A Limited Assurance Report On Client Assets Where Firm Has Permission To Hold Both Client Money And Custody Assets But Claims To Hold Neither
- Illustrative Unmodified Opinion In A Limited Assurance Report On Client Assets Where The Firm Is Permitted To Hold Client Money But Not Custody Assets And Claims To Hold Neither
- Appendix 7: Illustrative Unmodified Opinion In A Limited Assurance Report On Client Assets Where The Firm Does Not Have Permission To Hold Client Money Or Custody Assets And Claims To Hold Neither
- Appendix 8: Illustrative Modified Limited Assurance Opinion On Client Assets Where A Firm Holds Client Money But Does Not Have Permission To Do So
- Appendix 9: The Alternative Approach To Client Money Segregation
- The Non-Standard Method Of Internal Client Money Reconciliation
- Appendix 11: Illustrative Example Of A Confirmation Letter From The Auditor To The Firm Regarding A Non-Statutory Client Money Trust
- Appendix 12: The Cass Auditor’S Duty To Report To The FCA
- Close sectionContextual Material To The Client Asset Assurance Standard
- Background
- Requirement to protect clients’ safe custody assets and client money
- Requirement to have adequate organisational arrangements
- Other CASS Rules
- Status of Standard
- Reasonable Assurance Client Assets Reports
- Underlying Subject Matter
- Reasonable Assurance Process
- Applicable Criteria
- Applicable Criteria – The CASS rules in the CASS Sourcebook
- Applicable Criteria – Guidance in the CASS Sourcebook
- References to CASS rules and guidance in the Standard
- Applicable Criteria – Waivers and Modifications
- Applicable Criteria – Individual Guidance
- Breaches Schedule
- Limited Assurance Client Assets Reports for investment businesses
- Need to understand the firm’s business model
- CASS Operational Oversight
- Requisite mind-sets
- Attitude of professional scepticism
- Planning and performing the CASS audit
- Reporting Breaches to the FCA
- Awareness of insolvency and trust law
- Internal control
- Third party administration of client assets
- Forming and managing the Client Asset Engagement Team
- Training
- Special Reports
- Glossary Of Terms (2016)
- Close sectionPart 3: APB Bulletins
- Close sectionBulletin 2: Guidance for Reporting Accountants of Stakeholder Pension Schemes in the United Kingdom
- Close sectionAPB Bulletin 2010/1: XBRL Tagging of Information in Audited Financial Statements – Guidance for Auditors
- Close sectionAPB Bulletin 2009/4: Developments in Corporate Governance Affecting the Responsibilities of Auditors of UK Companies
- INTRODUCTION
- DIRECTORS’ STATEMENT ON GOING CONCERN REQUIRED BY THE LISTING RULES
- THE CORPORATE GOVERNANCE STATEMENT REQUIRED BY THE "DISCLOSURE RULES AND TRANSPARENCY RULES"
- CHANGES TO THE STRUCTURE OF THE LISTING REGIME EFFECTIVE OCTOBER 2009
- APPENDIX 1 - ILLUSTRATIVE AUDITOR’S REPORT FROM BULLETIN 2009/2 SHOWING THE ADDITIONAL WORDING THAT IS REQUIRED WHEN A SEPARATE CORPORATE GOVERNANCE STATEMENT IS ISSUED BY THE COMPANY EITHER IN ITS ANNUAL REPORT OR IN A SEPARATE DOCUMENT12
- APPENDIX 2 - ILLUSTRATIVE AUDITOR’S REPORT FROM BULLETIN 2009/2 SHOWING THE CHANGES NECESSARY FOR IT TO APPLY TO A STANDARD LISTED COMPANY14
- Close sectionAPB Bulletin 2008/9: Miscellaneous Reports by Auditors Required by the United Kingdom Companies Act 2006
- Close sectionAPB Bulletin 2008/05: Auditor's reports on revised accounts and reports in the United Kingdom
- Introduction
- Revision By Replacement Or By Supplementary Note
- Dating The Auditor's Revised Report
- Auditor's Procedures When Reporting On Revised Accounts, Directors' Reports And Directors' Remuneration Reports
- Requirements Of The SI 373 Regulations That Establish Requirements With Respect To Auditor's Reports
- Appendix 1 - Summarisation Of Requirements Of The Companies (Revision Of Defective Accounts And Reports) Regulations 2008 (The SI 373 Regulations)
- Appendix 2 - Illustrative Example Of An Auditor's Report On Revised Annual Accounts: Revision By Replacement
- Appendix 3 - Illustrative Example Of An Auditor's Report On Revised Annual Accounts: Revision By Supplementary Note
- Appendix 4 - Illustrative Auditor's Report On Revised Directors' Report: Revision By Replacement
- Appendix 5 - Illustrative Auditor's Report On Revised Directors' Remuneration Report: Revision By Replacement
- Appendix 6 - Illustrative Example Of A Special Report On The Revised Abbreviated Accounts Of A Small Company When Full Financial Statements Are Revised
- Appendix 7 - Illustrative Auditor's Statement On A Revised Summary Financial Statement Of A Quoted Company: Revision By Replacement
- Close sectionAPB Bulletin 2006/5: The Combined Code On Corporate Governance: Requirements Of Auditors Under The Listing Rules of the Financial Services Authority and the Irish Stock Exchange
- Close sectionBulletin: Auditor’s Reports On Revised Accounts And Reports In The United Kingdom
- Close sectionIntroduction
- Voluntary revision of accounts or reports
- Application to court in respect of defective accounts or reports
- Avenues available to an auditor on becoming aware that accounts or reports are defective
- Limitation as to extent of revisions permitted by law
- Applicable requirements and guidance of ISAs (UK)
- Revision by replacement or by supplementary note
- Dating the auditor’s revised report
- Auditor’s procedures when reporting on revised accounts, directors’ reports, strategic reports, directors’ remuneration reports and director’s remuneration policy
- Close sectionRequirements of the SI 2008/373 Regulations that establish requirements with respect to auditor’s reports
- Close sectionAppendix 1: Summary of requirements of the Companies (Revision of Defective Accounts and Reports) Regulations 2008 (the SI 2008/373 Regulations)
- Directors’ statement relating to revised annual accounts: revision by replacement
- Directors’ statement relating to revised annual accounts: revision by supplementary note
- Directors’ statement relating to a revised directors’ report, a revised directors’ remuneration report or a revised directors remuneration policy: revision by replacement
- Directors’ statement relating to a revised directors’ report, a revised directors’ remuneration report or a revised directors remuneration policy: revision by supplementary note
- Companies that are exempt from audit
- Modifications of Companies Act 2006
- Close sectionAppendix 2: Illustrative auditors report on revised annual accounts when the revision is by replacement
- Close sectionAppendix 3: Illustrative auditors report on revised annual accounts when the revision is by supplementary note
- Opinion
- Basis for opinion
- Conclusions relating to going concern
- Emphasis of matter – Revision of…
- Other Information
- Opinions on other matters prescribed by the Companies Act 2006
- Matters on which we are required to report by exception
- Matters on which we are required to report by exception
- Responsibilities of directors
- Auditor’s Responsibilities for the audit of the financial statements
- Close sectionAppendix 4: Illustrative auditors report on revised [directors report] [strategic report] [strategic report with supplementary material] when the revision is by replacement or supplementary note
- Close sectionAppendix 5: Illustrative auditors report on revised director’s remuneration report [directors remuneration policy] when the revision is by replacement or supplementary note
- Close sectionIntroduction
- Close sectionBulletin: The Auditor’s Association with Preliminary Announcements made in accordance with UK Listing Rules
- Introduction
- Listing Rule Requirements
- Companies Act Requirements
- UK Corporate Governance Code
- The Role of the Auditor
- Terms of Engagement
- Close sectionProcedures
- Planning
- Preliminary announcements based on audited financial statements
- Preliminary announcements based on draft financial statements
- All preliminary announcements
- Alternative performance measures
- Management commentary
- Directors’ approval of the preliminary announcement
- Modification of the auditor’s report
- Communication of agreement
- Appendices
- Close sectionAppendix 1— Illustrative Example Letter To Directors Indicating Auditor’s Agreement With Preliminary Announcement
- Close sectionAppendix 2—Illustrative Example Terms of Engagement: Audit Completed
- Close sectionAppendix 3—Illustrative Example Terms of Engagement: Audit Not Completed
- Close sectionAppendix 4—Illustrative Report on the Auditor’s Agreement to the Preliminary Announcement and the Status of the Audit of the Statutory Financial Statements
- Close sectionBulletin: Illustrative Auditor’s Reports On United Kingdom Private Sector Financial Statements
- Introduction
- Close sectionOpinion
- Basis for Opinion
- Application of materiality
- Conclusions relating to going concern
- Emphasis of matter and other matter paragraphs
- Other legal and regulatory matters the auditor is required to address
- Close sectionCorporate Governance Statement
- Location of the description of auditor’s responsibilities for the audit of the financial statements
- Other matters the auditor is required to address
- Alternative presentation options for financial statements of a group
- References to IFRS as adopted by the European Union post-EU Exit
- Close sectionAppendices 1 – 7B: Illustrative Auditors Report
- Close sectionAppendix 1 - Non-publicly traded company preparing financial statements under the small companies regime
- Close sectionAppendix 2 - Non-publicly traded company preparing group and parent company financial statements under UK GAAP
- Close sectionAppendix 3 - Publicly traded AIM listed company preparing financial statements under IFRSs
- Close sectionAppendix 4 - Unlisted public interest entity preparing financial statements under UK GAAP with a material uncertainty related to going concern
- Close sectionAppendix 5 - Publicly traded standard listed company preparing group financial statements under IFRSs and parent company financial statements under UK GAAP
- Close sectionAppendix 6 - Publicly traded premium listed company preparing group and parent company financial statements under IFRSs
- Close sectionAppendix 7A - Publicly traded premium listed company preparing group financial statements under IFRSs (reported on separately from the parent company financial statements)
- Close sectionAppendix 7B - Publicly traded premium listed company preparing parent company financial statements under UK GAAP (reported on separately from the group financial statements)
- Close sectionAppendix 8 – Auditors Responsibilities for the audit of the financial statements: Applicable for audits of financial statements for periods commencing on or after 15 April 2020
- Description of the auditor’s responsibilities for the audit of the financial statements
- Reporting on the financial statements
- Unmodified opinions
- Modified opinions
- Emphasising certain matters without modifying the opinion
- Communicating "other matters"
- Other information included in the annual report
- Other legal and regulatory requirements
- Close sectionBulletin: Miscellaneous Reports By Auditors Required By The United Kingdom Companies Act 2006
- Introduction
- Close sectionDistributions: Justification of distribution by reference to relevant accounts (Sections 836 to 839 of CA 2006)
- Close sectionDistributions: The use of initial accounts (Section 839(5) of CA 2006)
- Close sectionStatement by auditor on ceasing to hold office (Section 519 of CA 2006)
- Close sectionAuditor’s statement with respect to net assets when a private company re-registers as a public company (Section 92 of CA 2006)
- Requirements as to net assets
- Meaning of unqualified report
- The auditor’s statement on net assets
- Auditor’s report on the balance sheet
- Reporting
- Close sectionExample 4: Statement when a private company wishes to re-register as a public company where the auditor’s opinion on the balance sheet is unqualified
- Close sectionExample 5: Statement when a private company wished to re-register as a public company where the auditor’s opinion on the balance sheet is qualified with respect to proper preparation in accordance with the Company Act 2006, but the qualification is not material
- Close sectionReport when a private company wishes to redeem or purchase its own shares out of capital (Section 714(6) of CA 2006)
- Close sectionReport when a public company wishes to allot shares otherwise than for cash (Section 593 of CA 2006)
- Close sectionReport when non-cash assets are transferred to a public company by certain of its members (Section 599 of CA 2006)
- Bulletin: Guidance for Auditors and Matters to Consider where Engagements are Affected by Coronavirus (Covid-19) – Updated December 2020
- Close sectionPart 4: APB Practice Notes
- Close sectionPractice Note 10: Audit of financial statements of public sector bodies in the United Kingdom
- The Financial Reporting Council’s Statement on the Statement of Recommended Practice – Practice Note 10: Audit of financial statements of public sector Bodies in the United Kingdom
- Statement of Recommended Practice –
- Preface
- Introduction
- Close sectionPart 1: Application of International Standards on Auditing (UK)
- International Standard on Quality Control (UK) 1
- ISA (UK) 200: Overall objective of the independent auditor and the conduct of an audit in accordance with International Standards on Auditing (UK)
- ISA (UK) 210: Agreeing the terms of audit engagements
- ISA (UK) 220: Quality control for an audit of financial statements
- ISA (UK) 240: The auditor’s responsibilities relating to fraud in an audit of financial statements
- ISA (UK) 250A – Consideration of laws and regulations in an audit of financial statements
- ISA (UK) 260: Communication with those charged with governance
- ISA (UK) 265: Communicating deficiencies in internal control to those charged with governance and management
- ISA (UK) 315: Identifying and assessing the risks of material misstatement through understanding the entity and its environment
- ISA (UK) 320: Materiality in planning and performing an audit
- ISA (UK) 330: The auditor’s responses to assessed risks
- ISA (UK) 402: Audit considerations relating to an entity using a service organisation
- ISA (UK) 450: Evaluation of misstatements identified during the audit
- ISA (UK) 510: Initial audit engagements – opening balances
- ISA (UK) 520: Analytical Procedures
- ISA (UK) 540: Auditing accounting estimates, including fair value accounting estimates, and related disclosures
- ISA (UK) 550: Related parties
- ISA (UK) 560: Subsequent events
- ISA (UK) 570: Going concern
- ISA (UK) 580: Written representations
- ISA (UK) 600: Special considerations – audits of group financial statements (including the work of component auditors)
- ISA (UK) 610: Using the work of internal auditors
- ISA (UK) 620: Using the work of an auditor’s expert
- ISA (UK) 700: Forming an opinion and reporting on financial statements
- ISA (UK) 706: Emphasis of matter paragraphs and other matter paragraphs in the independent auditor’s report
- ISA (UK) 720: The auditor’s responsibilities relating to other information
- Close sectionPart 2: The audit of regularity
- Introduction
- Understanding the concept of regularity
- How regularity relates to other concepts including propriety and compliance with laws and regulations
- The audit of regularity – an overview
- Understanding the entity and its environment
- Understanding the entity’s internal controls
- Materiality for the audit of regularity
- Assessing the risk of material irregularity
- Planning and performing audit procedures
- Areas requiring special consideration
- Written representations
- Using the work of others
- Evaluating irregularities
- The risk of fraud in the audit of regularity
- Regularity opinion on financial statements
- Other reporting on regularity
- Appendix One: – Glossary of terms
- Close sectionPractice Note 11: The audit of charities in the United Kingdom
- Preface
- Close sectionLegislative And Regulatory Framework
- Charity regulators
- ISA (UK) 210: Agreeing The Terms Of Audit Engagements
- ISA (UK) 220: Quality Control For An Audit Of Financial Statements
- ISA (UK) 240: The Auditor'S Responsibilities Relating To Fraud In An Audit Of Financial Statements
- ISA (UK) 250: Section A – Consideration Of Laws And Regulations In An Audit Of Financial Statements
- ISA (UK) 260: Communication With Those Charged With Governance
- ISA (UK) 265: Communicating Deficiencies In Internal Control To Those Charged With Governance And Management
- ISA (UK) 315: Identifying And Assessing The Risks Of Material Misstatement Through Understanding The Entity And Its Environment
- ISA (UK) 320: Materiality In Planning And Performing An Audit
- ISA (UK) 330: The Auditor's Responses To Assessed Risks
- ISA (UK) 402: Audit Considerations Relating To An Entity Using A Service Organisation
- ISA (UK) 510: Initial Audit Engagements—Opening Balances
- ISA (UK) 540: Auditing Accounting Estimates, Including Fair Value Accounting Estimates, And Related Disclosures
- ISA (UK) 550: Related Parties
- ISA (UK) 570: Going Concern
- ISA (UK) 580: Written Representations
- ISA (UK) 600: Special Considerations—Audits Of Group Financial Statements (Including The Work Of Component Auditors)
- ISA (UK) 700: Forming An Opinion And Reporting On Financial Statements
- ISA (UK) 720: The Auditor's Responsibilities Relating To Other Information
- Reporting Matters Of Material Significance To Charity Regulators
- Appendix 1 Conditions And Events That May Indicate Risks Of Material Misstatement
- Appendix 2 Charity Accounting And Audit Requirements In The United Kingdom
- Close sectionPractice Note 14: The audit of housing associations in the United Kingdom
- Close sectionPractice Note 14: The Audit of Housing Associations in the United Kingdom (Revised March 2021)
- Background to Housing Associations
- Regulation of Housing Associations
- Business Risks Relevant to Housing Associations
- Audit Risks Relevant to Housing Associations
- ISA (UK) 240 (Revised May 2021): The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
- ISA (UK) 250 Section A (Revised November 2019): Consideration of Laws and Regulations in an Audit of Financial Statements
- ISA (UK) 250 Section B (Revised November 2019): The Auditor’s Right and Duty to Report to Regulators in the Financial Sector
- ISA (UK) 260 (Revised June 2016) (updated January 2020): Communication with Those Charged with Governance
- ISA (UK) 315 (Revised July 2020): Identifying and Assessing the Risk of Material Misstatement
- ISA (UK) 320 (Revised June 2016): Materiality in Planning and Performing an Audit of Housing Associations
- ISA (UK) 402: Audit Considerations Relating to an Entity Using a Service Organisation
- ISA (UK) 520: Analytical Procedures
- ISA (UK) 540 (Revised December 2018): Auditing Accounting Estimates and Related Disclosures
- ISA (UK) 570 (Revised September 2019): Going Concern
- ISA (UK) 720 (Revised November 2019): The Auditor’s Responsibilities Relating to Other Information
- Close sectionPractice Note 15 (2017): The audit of occupational pension schemes in the United Kingdom
- Preface
- Introduction
- Occupational Pension Schemes – Key Characteristics
- ISA (UK) 200: Overall Objectives Of The Independent Auditor And The Conduct Of An Audit In Accordance With International Standards On Auditing (UK)
- ISA (UK) 240: The Auditor’S Responsibilities Relating To Fraud In An Audit Of Financial Statements
- ISA (UK) 250: Section A – Consideration Of Laws And Regulations In An Audit Of Financial Statements
- ISA (UK) 260: Communication With Those Charged With Governance
- ISA (UK) 265: Communicating Deficiencies In Internal Control To Those Charged With Governance And Management
- ISA (UK) 300: Planning An Audit Of Financial Statements
- ISA (UK) 315: Identifying And Assessing The Risks Of Material Misstatement Through Understanding The Entity And Its Environment
- ISA (UK) 320: Materiality In Planning And Performing An Audit
- ISA (UK) 402: Audit Considerations Relating To An Entity Using A Service Organisation
- ISA (UK) 500: Audit Evidence
- ISA (UK) 520: Analytical Procedures
- ISA (UK) 540: Auditing Accounting Estimates, Including Fair Value Accounting Estimates, And Related Disclosures
- ISA (UK) 550: Related Parties
- ISA (UK) 570: Going Concern
- ISA (UK) 580: Written Representations
- ISA (UK) 620: Using The Work Of An Auditor’S Expert
- ISA (UK) 700: Forming An Opinion And Reporting On Financial Statements
- ISA (UK) 720: The Auditor’S Responsibilities Relating To Other Information
- The Auditor’S Statement About Contributions (The Statement)
- Liaison With The Scheme Actuary
- Reporting Matters Of Material Significance To The Pensions Regulator
- Close sectionPractice Note 16 (Revised): Bank reports for audit purposes in the United Kingdom
- PREFACE
- INTRODUCTION
- PLANNING: RISK ASSESSMENT AND AUDIT EVIDENCE
- PLANNING: THE BANK REPORT REQUEST
- AUTHORITY TO DISCLOSE
- GUARANTEES AND OTHER THIRD PARTY SECURITIES
- BANK INFORMATION
- BANK REPORT REQUEST TEMPLATES
- TIMING OF REQUESTS
- MINOR OMISSIONS OR DISCREPANCIES
- ACCRUED INTEREST AND CHARGES
- APPENDIX 1 - TEMPLATES FOR AUDITOR REQUEST FORMS
- APPENDIX 2 - AUTHORITY TO DISCLOSE INFORMATION – ILLUSTRATION
- APPENDIX 3 - BRITISH BANKERS’ ASSOCIATION GUIDANCE NOTE FOR BANKS
- Close sectionPractice Note 19: The audit of banks and building societies in the United Kingdom (Revised)
- PREFACE
- RESTRUCTURING OF THE FSA
- INTRODUCTION
- LEGISLATIVE AND REGULATORY FRAMEWORK
- THE AUDIT OF FINANCIAL STATEMENTS
- APPENDIX 2 - THE MAIN PARTS OF FSMA 2000 RELEVANT TO BANKS AND BUILDING SOCIETIES
- APPENDIX 3 - FSMA 2000, BS ACT 1986 AND RELATED STATUTORY INSTRUMENTS: IMPORTANT PROVISIONS FOR AUDITORS
- APPENDIX 4 - THE FSA HANDBOOK
- APPENDIX 5 - POSSIBLE FACTORS THAT MAY INDICATE GOING CONCERN ISSUES
- APPENDIX 6 - REPORTING DIRECT TO THE FSA – STATUTORY RIGHT AND PROTECTION FOR DISCLOSURE UNDER GENERAL LAW
- APPENDIX 7 - THE AUDITORS’ RIGHT AND DUTY TO REPORT TO THE FSA: EXAMPLES OF REPORTABLE ITEMS
- APPENDIX 8 - DEFINITIONS
- Close sectionPRACTICE NOTE 19: THE AUDIT OF BANKS AND BUILDING SOCIETIES IN THE UNITED KINGDOM (REVISED JULY 2019)
- PREFACE
- INTRODUCTION
- LEGISLATIVE AND REGULATORY FRAMEWORK
- ISA (UK) 210: AGREEING THE TERMS OF AUDIT ENGAGEMENTS
- ISA (UK) 240: THE AUDITOR’S RESPONSIBILITIES RELATING TO FRAUD IN AN AUDIT OF FINANCIAL STATEMENTS
- ISA (UK) 250: SECTION A – CONSIDERATION OF LAWS AND REGULATIONS IN AN AUDIT OF FINANCIAL STATEMENTS
- ISA (UK) 250: SECTION B – THE AUDITOR’S RIGHT AND DUTY TO REPORT TO REGULATORS OF PUBLIC INTEREST ENTITIES AND REGULATORS OF OTHER ENTITIES IN THE FINANCIAL SECTOR
- ISA (UK) 300: PLANNING AN AUDIT OF FINANCIAL STATEMENTS
- ISA (UK) 315: IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT
- ISA (UK) 320: MATERIALITY IN PLANNING AND PERFORMING AN AUDIT
- ISA (UK) 330: THE AUDITOR’S RESPONSES TO ASSESSED RISKS
- ISA (UK) 402: AUDIT CONSIDERATIONS RELATING TO AN ENTITY USING A SERVICE ORGANISATION
- ISA (UK) 505: EXTERNAL CONFIRMATIONS
- ISA (UK) 520: ANALYTICAL PROCEDURES
- ISA (UK) 540: AUDITING ACCOUNTING ESTIMATES AND RELATED DISCLOSURES
- ISA (UK) 550: RELATED PARTIES
- ISA (UK) 560: SUBSEQUENT EVENTS
- ISA (UK) 570: GOING CONCERN
- ISA (UK) 580: WRITTEN REPRESENTATIONS
- ISA (UK) 600: SPECIAL CONSIDERATIONS – AUDITS OF GROUP FINANCIAL STATEMENTS (INCLUDING THE WORK OF COMPONENT AUDITORS)
- ISA (UK) 620: USING THE WORK OF AN AUDITOR’S EXPERT
- ISA (UK) 700: FORMING AN OPINION AND REPORTING ON FINANCIAL STATEMENTS
- ISA (UK) 705: MODIFICATIONS TO THE OPINION IN THE INDEPENDENT AUDITOR’S REPORT
- ISA (UK) 706: EMPHASIS OF MATTER PARAGRAPHS AND OTHER MATTER PARAGRAPHS IN THE INDEPENDENT AUDITOR’S REPORT
- OTHER REPORTS BY THE AUDITOR
- APPENDIX 1: ILLUSTRATIVE EXAMPLES OF AUDITOR’S REPORTS
- APPENDIX 2: THE MAIN PARTS OF FSMA 2000 RELEVANT TO BANKS AND BUILDING SOCIETIES
- APPENDIX 3: FSMA 2000, BS ACT 1986 AND RELATED STATUTORY INSTRUMENTS: IMPORTANT PROVISIONS FOR AUDITORS
- APPENDIX 4: THE FCA HANDBOOK AND PRA RULEBOOK
- APPENDIX 5: POSSIBLE FACTORS THAT MAY INDICATE GOING CONCERN ISSUES
- APPENDIX 6: REPORTING DIRECT TO THE REGULATORS – STATUTORY RIGHT AND PROTECTION FOR DISCLOSURE UNDER GENERAL LAW
- APPENDIX 7: THE AUDITORS' RIGHT AND DUTY TO REPORT TO THE REGULATORS – EXAMPLES OF REPORTABLE ITEMS
- APPENDIX 8: AUDITING ECL – EXAMPLE APPROACH FOR FORWARD-LOOKING INFORMATION
- APPENDIX 9: DEFINITIONS
- Close sectionPractice Note 20 (Revised): The audit of insurers in the United Kingdom
- PREFACE
- INTRODUCTION
- LEGISLATIVE AND REGULATORY FRAMEWORK
- THE AUDIT OF FINANCIAL STATEMENTS
- REPORTING ON REGULATORY RETURNS
- APPENDIX 1 - ILLUSTRATIVE EXAMPLES OF AUDITOR’S REPORTS
- APPENDIX 2 - THE MAIN PARTS OF FSMA 2000 RELEVANT TO INSURERS44
- APPENDIX 3 - THE FSA HANDBOOK
- APPENDIX 4 - REPORTING DIRECT TO THE FSA – STATUTORY RIGHT AND PROTECTION FOR DISCLOSURE UNDER GENERAL LAW
- APPENDIX 5 - DEFINITIONS
- APPENDIX 6 - CROSS REFERENCES TO SIGNIFICANT TOPICS DEALT WITH IN THE PRACTICE NOTE
- Close sectionPractice Note 23: Special considerations in auditing financial instruments
- Close sectionPractice Note 26: Guidance on smaller entity audit documentation (Revised)
- Introduction
- Purposes of audit documentation
- Special considerations in the documentation of a smaller entity audit
- Audit documentation requirements in ISAs (UK and Ireland)
- Appendix A – Summary of documentation requirements and guidance in ISAs (UK and Ireland)
- Appendix B - Illustrative examples of audit documentation
- Close sectionPractice Note 10: Audit of financial statements of public sector bodies in the United Kingdom
- Close sectionPart 5: Standards for Investment Reporting (SIRs)
- Close sectionSIR 1000: Investment Reporting Standards Applicable to all Engagements in Connection with an Investment Circular
- Close sectionIntroduction
- Engagement acceptance and continuance
- Agreeing the terms of the engagement
- Ethical requirements
- Legal and regulatory requirements
- Quality control
- Close sectionPlanning and performing the engagement
- Documentation
- Professional scepticism
- Reporting
- Modified opinions
- Pre-existing financial information
- Consent
- Events occurring between the date of the reporting accountant’s report and the completion date of the transaction
- Effective date
- Close sectionAppendix 1: Principal Legal and Regulatory Requirements
- Appendix 2: Example of a Consent Letter
- Appendix 3: Glossary of Terms
- Close sectionSIR 2000 (Revised): Investment Reporting Standards Applicable to Public Reporting Engagements on Historical Financial Information
- Introduction
- Pre-existing financial information
- True and fair view, for the purposes of the investment circular
- General professional considerations
- Planning
- Understanding of the entity, its environment and risk assessment
- Materiality
- The reporting accountant’s procedures
- Evidence
- Obtaining access to information in audit documentation
- Events occurring up to the date of the accountant’s report
- Events occurring between the date of the accountant’s report and the completion date of the transaction
- Going concern
- Representations
- Joint reporting accountants
- Reporting
- Other information – references to previous audit opinions
- Comparatives
- Consent in the context of investment circulars containing a report by a reporting accountant
- Effective date
- Close sectionAppendix 1: Examples of engagement letter clauses
- Appendix 2: Example of an accountant’s report on historical financial information prepared in accordance with International Financial Reporting Standards as adopted by the European Union
- Appendix 3: Example of an accountant’s report on historical financial information prepared in accordance with the basis described in a basis of preparation note
- Close sectionAnnexure: Accounting conventions commonly used in the preparation of historical financial information in investment circulars
- Introduction
- Disclosure of the financial reporting framework adopted
- Adjustments to the financial information
- Trend of results
- Adjustments for change in basis of accounting
- Audit qualifications relating to non-compliance with accounting standards
- Post balance sheet events
- Presentation of the financial information
- Issues connected with underlying financial statements
- Unconsolidated accounts
- Entities under common management and control
- Carve outs
- Allocations
- Bases for allocating transactions and balances
- Relationship with the remaining group
- Pension costs
- Acquisitions
- Disposals, non recurring and exceptional items
- Taxation
- Cash flow statements
- Investments in subsidiaries, joint ventures and associates
- Treatment of other items
- Acquisitions
- Disposals
- Financial information on newly formed issuers
- Unincorporated entities and entities producing limited accounting information
- Changes in the legal form of entities
- Earnings per share
- Reporting currency
- Extraction without material adjustment
- Close sectionSIR 3000: Investment Reporting Standards Applicable to Public Reporting Engagements on Profit Forecasts
- Introduction
- Close sectionThe nature of profit forecasts
- Compilation process
- Close sectionEngagement acceptance and continuance
- Legal and regulatory requirements
- Close sectionPlanning and performing the engagement
- Public reporting engagement risk
- Historical financial information
- Accounting policies
- Presentation of the profit forecast
- Representation letter
- Close sectionReporting
- Modified opinions
- Confirmations of the profit forecast continuing to apply - subsequent documents
- Events occurring between the date of the reporting accountant’s report and the completion date of the transaction
- Effective date
- Close sectionAppendix 1: Examples of Engagement Letter Clauses
- Close sectionAppendix 2: Examples of Management Representation Letter Clauses
- Appendix 3: Illustrative Report
- Close sectionSIR 4000: Investment Reporting Standards Applicable to Public Reporting Engagements on Pro Forma Financial Information
- Introduction
- Close sectionThe nature of pro forma financial information
- Engagement acceptance and continuance
- Agreeing the terms of the engagement
- Legal and regulatory requirements
- Close sectionPlanning and performing the engagement
- Close sectionReporting
- Modified Opinions
- Events occurring between the date of the reporting accountant’s report and the completion date of the transaction
- Effective Date
- Appendix 1: Reporting Accountant Criteria
- Appendix 2: Other Regulatory Provisions Relevant to the Preparers of Pro Information
- Close sectionAppendix 3: Examples of Engagement Letter Clauses
- Close sectionAppendix 4: Examples of Management Representation Letter Clauses
- Appendix 5: Illustrative Report
- Close sectionSIR 5000: Investment Reporting Standards Applicable to Public Reporting Engagements on Financial Information Reconciliations under the Listing Rules
- Introduction
- The nature of financial information reconciliations
- Engagement acceptance and continuance
- Agreeing the terms of the engagement
- Legal and regulatory requirements
- Close sectionPlanning and performing the engagement
- Representation letter
- Close sectionReporting
- Events occurring between the date of the reporting accountant's report and the completion date of the transaction
- Effective date
- Appendix 1: Listing Rule Requirements
- Close sectionAppendix 2: Examples of Management Letter Clauses
- Close sectionAppendix 3: Examples of Management Representation Letter Clauses
- Appendix 4: Illustrative Report
- Close sectionAnnexure: Accounting Conventions and Processes Used in Preparing Financial Information Reconciliations for Inclusion in Class 1 Circulars
- Close sectionSIR 6000: Investment Reporting Standards Applicable to Public Reporting Engagements on Quantified Financial Benefits Statements
- Introduction
- Close sectionThe nature of Quantified Financial Benefit Statements
- Compilation of a QFBS
- Engagement acceptance and continuance
- Legal and regulatory requirements
- Close sectionPlanning and performing the engagement
- Representation letter
- Close sectionReporting
- Events occurring between the date of the reporting accountant’s report and the completion date of the transaction
- Effective date
- Close sectionAppendix 1: Illustrative Report
- Appendix 2: Confirmations
- Close sectionSIR 1000: Investment Reporting Standards Applicable to all Engagements in Connection with an Investment Circular
- Close sectionPart 6: International Standard on Quality Management (UK) 1: (Previously International Standard on Quality Control (UK) 1 (Revised March 2023) Quality management for firms that perform audits or reviews of financial statements, or other assurance or related services engagements
- Close sectionIntroduction
- Objective
- Definitions
- Close sectionRequirements
- Applying, and Complying with, Relevant Requirements
- System of Quality Management
- The Firm’s Risk Assessment Process
- Governance and Leadership
- Relevant Ethical Requirements
- Acceptance and Continuance of Client Relationships and Specific Engagements
- Engagement Performance
- Resources
- Information and Communication
- Specified Responses
- Monitoring and Remediation Process
- Network Requirements or Network Services
- Evaluating the System of Quality Management
- Documentation
- Close sectionApplication and Other Explanatory Material
- Scope of this ISQM (UK) (Ref: Para. 3–4)
- The Firm’s System of Quality Management (Ref: Para. 6–9)
- Authority of this ISQM (UK) (Ref: Para. 12)
- Definitions
- Applying, and Complying with, Relevant Requirements (Ref: Para. 17)
- System of Quality Management
- The Firm’s Risk Assessment Process (Ref: Para. 23)
- Governance and Leadership
- Relevant Ethical Requirements (Ref: Para. 16(t), 29)
- Acceptance and Continuance of Client Relationships and Specific Engagements
- Engagement Performance
- Resources (Ref: Para. 32)
- Information and Communication (Ref: Para. 33)
- The Firm’s Information System (Ref: Para. 33(a))
- Communication Within the Firm (Ref: Para. 33(b), 33(c))
- Communication with External Parties
- Specified Responses (Ref: Para. 34)
- Monitoring and Remediation Process (Ref: Para. 35–47)
- Network Requirements or Network Services (Ref: Para. 48)
- Documentation (Ref: Para. 57–59)
- Close sectionPart 6: International Standard on Quality Management (UK) 2: Engagement Quality Reviews (Revised March 2023)