WiredGov Newswire (news from other organisations)
FRC updates aid to Audit Committees in evaluating audit quality
The Financial Reporting Council (FRC) has issued an update of its Practice Aid to assist audit committees in evaluating audit quality in their assessment of the effectiveness of the external audit process.
The update takes account of developments since the first edition was issued in 2015, including revisions of the UK Corporate Governance Code, the requirement for all Public Interest Entities (PIEs) to conduct a tender at least every 10 years and rotate auditors after at least 20 years, and increasing focus generally on audit quality and the role of the audit committee. It also takes account of commentary from audit committees suggesting how the Practice Aid could be more practical in focus and more clearly presented.
The framework set out in the Practice Aid focuses on understanding and challenging how the auditor demonstrates the effectiveness of key professional judgments made throughout the audit and how these might be supported by evidence of critical auditor competencies. New sections have been added addressing the audit tender process, stressing that high-audit quality should be the primary selection criterion, and matters to cover in audit committee reporting.
As well as illustrating a framework for the audit committee’s evaluation, the Practice Aid sets out practical suggestions on how audit committees might tailor their evaluation in the context of the company’s business model and strategy; the business risks it faces; and the perception of the reasonable expectations of the company’s investors and other stakeholders. These include examples of matters for the audit committee to consider in relation to key areas of audit judgment, and illustrative audit committee considerations in evaluating the auditor's competencies.
The FRC encourages audit committees to use the Practice Aid to help develop their own approach to their evaluation of audit quality, tailored to the circumstances of their company. Audit committees are encouraged to see their evaluation as integrated with other aspects of their role related to ensuring the quality of the financial statements – obtaining evidence of the quality of the auditor’s judgments made throughout the audit, in identifying audit risks, determining materiality and planning their work accordingly, as well as in assessing issues.
Contact the Press Office
Alana SinnenCommunications Manager
- +44 020 7492 2395
Latest News from
WiredGov Newswire (news from other organisations)
CBI responds to Prime Minister's plans to transform skills and training30/09/2020 12:15:00
CBI yesterday responded to Prime Minister's plans to transform skills and training.
New vision for Companies House set out in 2020-25 strategy30/09/2020 10:33:00
Our new strategy for 2020-25 outlines our commitment to tackling economic crime and driving confidence in the UK economy.
CBI Wales responds to announcement of further Welsh Government support for hospitality and tourism29/09/2020 16:05:00
CBI Wales have responded to announcement of further Welsh Government support for hospitality and tourism.
UK Space Agency: Take-off for UK-built supercomputer nanosatellites29/09/2020 15:43:00
Four government-backed nanosatellites no bigger than a microwave were launched yesterday.
Oxfam - COVID survivors from 37 countries write to pharmaceutical bosses to demand a People's Vaccine29/09/2020 15:40:00
Survivors of COVID-19 from 37 countries are among almost 1,000 people who have signed an open letter to pharmaceutical industry leaders calling for a ‘people's vaccine’ and treatments that are available to all – free from patents. The letter comes on the eve of a high-level side event about the pandemic at the UN General Assembly in New York tomorrow (30 September).
Audit Scotland - A decade of improvement at Dundee City Council, but progress needs to quicken to tackle deep social issues29/09/2020 14:40:00
Over the last ten years Dundee City Council has improved many services for residents and played a major part in the ambitious programme of projects that have transformed much of the city centre.
CMA bows to industry pressure at expense of consumers says Citizens Advice29/09/2020 13:40:00
Citizens Advice reacts to the Competition and Market Authority’s (CMA’s) initial findings on the water industry’s appeal against the latest price control.
CBI - Emma Walmsley to speak at third annual Helen Alexander memorial lecture29/09/2020 13:15:00
GSK CEO Emma Walmsley will take part in a fireside chat and audience Q&A with The Economist’s Editor-in-Chief Zanny Minton Beddoes for this year’s Helen Alexander Memorial Lecture.
CIPD and EHRC launch new guide to help organisations support employees experiencing domestic abuse29/09/2020 12:40:00
Research from HR body CIPD finds less than a quarter of employees are aware of their employer’s policy or support available for domestic abuse