Staff Guidance Note on bank lending and bond funded syndicates
News types: Guidance
Published: 21 March 2018
The Financial Reporting Council (FRC) has today issued guidance for auditors (PDF) who provide restructuring services to bank lending and bond funded syndicates, in which public interest entities that they audit are participants.
The FRC’s guidance sets out the steps an auditor needs to consider so that they comply with the requirements set out in Articles 4 and 5 of the EU Audit Regulation. This includes: considering any threats to independence arising from the provision of the service; scoping the services to be provided so that they exclude any elements prohibited by the Regulation; and the approvals necessary to provide the service. Further guidance sets out how the costs of these services may be measured for the purposes of monitoring against the non-audit services fee cap, and steps an auditor should take when there is a change to the scope of proposed work and the associated fee.
The FRC’s guidance sets out the steps an auditor needs to consider so that they comply with the requirements set out in Articles 4 and 5 of the EU Audit Regulation. This includes: considering any threats to independence arising from the provision of the service; scoping the services to be provided so that they exclude any elements prohibited by the Regulation; and the approvals necessary to provide the service. Further guidance sets out how the costs of these services may be measured for the purposes of monitoring against the non-audit services fee cap, and steps an auditor should take when there is a change to the scope of proposed work and the associated fee.