The Auditing Practices Board (APB) has announced the publication of three ‘near – final’ Practice Notes (PNs):

• PN 19: Near-final guidance – The audit of banks and building societies in the United Kingdom (Revised),
• PN 20: Near-final guidance – The audit of insurers in the United Kingdom (Revised),
• PN 24: Near-final guidance – The audit of friendly societies in the United Kingdom (Revised).

These PNs were issued as consultation drafts for public comment earlier in 2006. They all reflect the change from Statements of Auditing Standards to International Standards on Auditing (ISAs) (UK and Ireland), and the significant regulatory developments that have occurred since the PNs were originally issued.

Currently the Financial Services Authority (FSA) is finalising a number of changes to its Handbook. The PNs are therefore being issued in a near-final form so that they are available to practitioners for 31 December 2006 year ends. Final versions of the PNs will be issued once the references to the FSA Handbook can be finalised. It is anticipated that printed versions of the PNs will be available by the end of January 2007.

Richard Fleck, APB Chairman, said:

“The audits of banks, insurers and friendly societies are often complex and require knowledge of the regulatory environment in which these businesses operate. These Practice Notes have been updated to reflect recent changes to the FSA Handbook as well as to provide guidance on the application of relevant ISAs (UK and Ireland). I would expect them to be of great assistance to auditors of entities in the financial services sector”.

Copies of the near-final drafts may be downloaded from the Publications (Exposure Drafts) section of this website.

1. The Financial Reporting Council (FRC) is a unified, independent regulator. Its mission is to promote confidence in corporate reporting and governance. The FRC incorporates six operating boards: the Accounting Standards Board, the Financial Reporting Review Panel, the Accountancy Discipline and Investigation Board, the Board for Actuarial Standards and the Professional Oversight Board for Accountancy, in addition to the APB. 
2.  The APB is committed to leading the development of auditing practice in the United Kingdom and the Republic of Ireland so as to:
   
   • establish high standards of auditing;
     
   • meet the developing needs of users of financial information; and
     
   • ensure public confidence in the auditing process.
     
3. The APB issues Practice Notes to assist auditors in applying auditing standards of general application to particular circumstances and industries. Practice Notes are persuasive rather than prescriptive. However, they are indicative of good practice even though they may be developed without the full process of consultation and exposure used for auditing standards.
4. The revised PNs have been prepared with advice and assistance from staff of the FSA (and, for PN 20, Lloyd’s).
5. For further information please contact Jon Grant, APB Executive Director, on 020-7492-2410.