The Auditing Practices Board (APB) of the FRC has today issued for comment a consultation draft of a revision of Practice Note 16 “Bank reports for audit purposes.” The consultation period ends on 29 October 2010.

The consultation draft updates the current guidance to reflect the issuance of the new ISAs (UK and Ireland) which apply to audits of financial statements for periods ending on or after 15 December 2010. No changes are proposed to the process that was agreed in 2007 between the UK auditing profession and the British Bankers Association (BBA) regarding the procedures auditors use when requesting confirmation of balances, transactions or arrangements from the bankers of an entity being audited.

Richard Fleck, Chairman of the APB and a director of the FRC said,

“Most of the changes in this consultation draft of Practice Note 16 have been made as part of our programme to conform the Practice Note with the clarified ISAs (UK and Ireland) published in October 2009. However, the APB invites comments on any aspect of the guidance.”

The consultation draft of Practice Note 16 (Revised) may be downloaded, free of charge, from the Publications (Exposure Drafts) section of this website.

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. 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.
4. Media enquiries should be directed to Marek Grabowski (Executive Director, APB) on 020 7492 2325, e-mail: m.grabowski@frc-apb.org.uk.