FRC consults on updated guidance for the audit of financial instruments
News types: Codes and Standards Announcements
Published: 4 October 2012
PN 014
The FRC has today issued a consultation on the proposed update of the guidance to auditors on the audit of financial instruments; an update to Practice Note 23 (Revised).
The proposed update reflects both the clarified International Standards on Auditing (ISAs) (UK and Ireland) and updated guidance issued by the International Auditing and Assurance Standards Board (IAASB) in its International Auditing Practice Note (IAPN) 1000, Special Considerations in Auditing Financial Instruments.
The FRC has supplemented IAPN 1000 with guidance that is currently set out in Practice Note 23 (Revised) that is still believed relevant and with a small amount of new guidance in relation to matters not covered in either IAPN 1000 or Practice Note 23 (Revised).
The consultation paper can be obtained here. The consultation period closes on 4 January 2013.
Nick Land, FRC Board member and chairman of the Audit and Assurance Council, said,
The FRC has today issued a consultation on the proposed update of the guidance to auditors on the audit of financial instruments; an update to Practice Note 23 (Revised).
The proposed update reflects both the clarified International Standards on Auditing (ISAs) (UK and Ireland) and updated guidance issued by the International Auditing and Assurance Standards Board (IAASB) in its International Auditing Practice Note (IAPN) 1000, Special Considerations in Auditing Financial Instruments.
The FRC has supplemented IAPN 1000 with guidance that is currently set out in Practice Note 23 (Revised) that is still believed relevant and with a small amount of new guidance in relation to matters not covered in either IAPN 1000 or Practice Note 23 (Revised).
The consultation paper can be obtained here. The consultation period closes on 4 January 2013.
Nick Land, FRC Board member and chairman of the Audit and Assurance Council, said,
“The proposed updated guidance is intended to be relevant to audits of entities of all sizes that may be subject to the risks associated with using financial instruments. The guidance reflects lessons learnt in the financial crisis. The FRC invites comments from auditors and other stakeholders with an interest in audit.”
Notes to editors:
The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.