Revision of Practice Note 11: The audit of charities in the UK
16 November 2017
The Financial reporting Council (FRC) has today issued a revision of Practice Note 11: The audit of charities in the United Kingdom (PDF). Practice Notes are intended to assist practitioners to comply with the requirements of UK auditing standards, by providing additional contextual material on the application of those standards in particular circumstances or in specialised sectors.
The revisions to Practice Note 11 reflect:
Revisions to International Standards on Auditing (UK) (ISAs (UK));
Changes to UK accounting standards (FRS 102) and the revision of the Charities SORP;
Continuing developments in regulation and guidance issued by the UK Charity Regulators; and
Changes in relevant legislation.
The Practice Note has been developed with input from an expert working group comprising audit practitioners, charity regulators, and representatives of charities. The revisions that the FRC has made will support the delivery of high quality audit, and responds to recent well-publicised failings of certain charities that have been investigated by the Public Administration and Constitutional Affairs Select Committee, and the Committee of Public Accounts. An Invitation to Comment was issued in May 2017. The final revised Practice Note reflects the actions that the FRC determined should be taken, having considered the responses received.
Feedback Statement and Impact Assessment: The Revision of Practice Note 11 (PDF)