On 2 March 2009, following a period of consultation, the Auditing Practices Board (APB) announced its intention to update its auditing standards for the new, clarified, International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB).

APB is today issuing for public comment exposure drafts of:

• 33 Clarified ISAs (UK and Ireland);
• Clarified International Standard on Quality Control (UK and Ireland) 1 (ISQC (UK and Ireland) 1); and
• A revised Statement of the Scope and Authority of APB Pronouncements.

The period for comment ends on 22 July 2009. When finalised, the new standards will replace the existing ISAs (UK and Ireland) and ISQC (UK and Ireland) 1 with effect for audits of financial statements for periods ending on or after 15 December 2010.

The proposed clarified ISAs (UK and Ireland) and ISQC (UK and Ireland) adopt the clarified ISAs and ISQC as issued by the IAASB with some proposed supplementary requirements and guidance, highlighted with grey shading, that APB considers necessary to:

• Address specific UK and Irish legal and regulatory requirements;
• Provide other guidance relating to legal and regulatory matters relevant to an audit; and
• Maintain a small number of other current APB requirements and guidance that are, in the APB’s view, necessary to prevent changes in audit practice to the detriment of audit quality.

A Consultation Paper has been issued with the exposure drafts that:

• Summarises the views of respondents to APB’s October 2008 consultation on whether APB should adopt the clarified ISAs and, if so, when; and
• Explains APB’s approach to including the proposed supplementary requirements and guidance that are specific to the UK and Ireland.

The Consultation Paper and exposure drafts can be downloaded, free of charge, from the Publications/Exposure Drafts section of the APB’s website. Printed and bound copies are being produced and may be obtained (price £25, post free) in the second half of May from: FRC Publications, 145 London Road, Kingston upon Thames, Surrey KT2 6SR. Telephone 020 8247 1264.

Richard Fleck, Chairman of APB, commented:

“I am pleased that the results of the October 2008 consultation support APB’s view that the new clarified ISAs are more rigorous and clearer than the existing ISAs and accordingly should be implemented in the UK and Ireland as soon as is practicable. APB has already announced that clarified ISAs (UK and Ireland) will apply to audits of accounting periods ending on or after 15 December 2010. This consultation is focused on the proposed APB supplementary requirements and guidance. Over the last three years APB, and its SME Audit and Public Sector sub-committees, have invested many hours in preparing responses to the draft Clarity ISAs when they were exposed by the IAASB. Most of APB’s recommendations for improvement have been accepted and, as a result, APB is able to reduce significantly the number of supplementary requirements now needed in the ISAs (UK and Ireland).”

1. The Financial Reporting Council (FRC), the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance. Its functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy and Actuarial Discipline Board) and by the FRC Board. The Committee on Corporate Governance assists the Board in its work on corporate governance.
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. All press enquiries should be directed to: Jon Grant on 020 7492 2410.