FRC withdraws 'Practice Note 26 - Guidance on Smaller Entity Documentation'
25 June 2018
The FRC has today withdrawn Practice Note 26 – Guidance on Smaller Entity Documentation. The current version of the Practice Note was issued in December 2009, and no longer supports the documentation requirements of a high quality audit. The FRC also develops principles based standards and guidance, and setting out example documentation for audits is not principles based. As a result, the FRC does not propose to revise the Practice Note as the material relates to smaller entities, which are unlikely to be public interest entities, the audits of which are directly overseen and inspected by the FRC. As smaller entity audits are usually subject to the inspection and oversight regimes of the UK Professional Accountancy Bodies, further guidance in this area may better fall with those bodies to develop.