The Auditing Practices Board (APB) of the FRC has today published an exposure draft of a revision of Practice Note (PN) 15: ‘The Audit of Occupational Pension Schemes in the United Kingdom (Revised)’. The consultation period ends on 29 October 2010.

When finalised, the guidance proposed in the exposure draft will apply to the audits of occupational pension schemes for periods ending on or after 15 December 2010. The exposure draft updates the current guidance, which was issued in March 2007, to reflect:

•  the issuance of the new ISAs (UK and Ireland) (which apply to audits of financial statements of occupational pension schemes for periods ending on or after 15 December 2010); and
• changes in the legislative and regulatory framework.

The new ISAs (UK and Ireland) primarily improve the overall readability and understandability of the ISAs (UK and Ireland). The core guidance contained in the exposure draft is largely unchanged from the current guidance. However, new, enhanced or revised guidance has been included with respect to:

• Communicating Deficiencies in Internal Control to Those Charged with Governance and Management.
• Audit Considerations Relating to an Entity Using a Service Organisation.
• Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures.
• Going Concern.
• The illustrative examples of various auditor’s reports.  

Richard Fleck, APB Chairman, said:

“This Practice Note is important guidance for auditors of occupational pension schemes and it is used extensively by the auditing profession. The issuance of the clarified ISAs has significantly improved the quality of auditing standards and those improvements are now reflected in the proposed revision to the Practice Note."

A copy of the exposure draft may be downloaded from the publications section of the APB’s web site at: http://www.frc.org.uk/apb/publications/pub2334.html.
 

1. The FRC is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment. 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 auditing.
3. Media enquiries should be directed to Marek Grabowski (Executive Director, APB) on 020 7492 2325, e-mail: m.grabowski@frc-apb.org.uk.