Consultation on Practice Note to support the audit of smaller and/or less complex entities
Published: 17 July 2025
Response deadline: 17 October 2025
| Title | Guidance for audits of smaller and/or less complex entities: Practice note Invitation to comment |
|---|---|
| Format | pdf, 2.1 MB |
On this page
Overview
The FRC has launched a consultation on a Practice Note to support auditors in the application of International Standards of Auditing (ISAs) UK when auditing smaller and/or less complex entities.
This consultation is part of the FRC’s year-long SME campaign and incorporates feedback which was received from stakeholders as part of the first phase of the SME audit market study.
The Practice Note provides guidance on areas identified where further guidance on scalability and proportionality could be helpful when auditing smaller and/or less complex entities.
| Name | Guidance for audits of smaller and/or less complex entities: Practice Note Exposure Draft |
|---|---|
| Publication date | 17 July 2025 |
| Type | Consultation paper |
| Format | PDF, 1.9 MB |
24 March 2026 update
The FRC has published 'Practice Note 28: Guidance for audits of small and medium-sized entities' as part of our broader campaign to support UK SMEs to access audit services and secure the capital they need for growth. A Practice Note Exposure Draft was published for consultation on 17 July 2025 and a Feedback Statement on the responses received accompanies its release.
This Practice Note provides guidance to auditors on how to apply the requirements of the International Standards on Auditing (ISAs) (UK) to the audit of financial statements of small and medium-sized entities in a scalable, proportionate, and effective way. Across 2026, the FRC will engage with audit firms and the Recognised Supervisory to support its organisations implement the Practice Note into their activities.
| Name | Practice Note 28: Guidance for audits of small and medium-sized entities |
|---|---|
| Publication date | 24 March 2026 |
| Type | Practice note |
| Format | PDF, 4.0 MB |
| Name | Feedback Statement and Impact Assessment - Practice Note 28 |
| Publication date | 24 March 2026 |
| Type | Feedback paper |
| Format | PDF, 1.2 MB. View HTML version |