Which audits are affected?
ISA (UK) 701 (Revised November 2019) (Updated January 2020) applies to audits of listed entities, non-listed public interest entities, entities that are required, and those that choose voluntarily to report on how they have applied the UK Corporate Governance Code, where the auditor is required by law or regulation to communicate key audit matters in the auditor’s report, as well as where the auditor voluntarily chooses to do so.
Audit report implications
Previously, auditors were required to provide an explanation of how they had applied the concept of materiality in planning and performing an audit and they had to specify the overall materiality threshold used (ie materiality for the financial statements as a whole). These disclosures may have included the threshold for performance materiality though this was not a requirement.
A key purpose of the BEIS White Paper on restoring trust in audit and corporate governance is simply to get companies to become really transparent in supplying more accessible information.
She is a member of ICAEW’s Internal Audit Panel, on the Council of the Chartered Institute of Internal Auditors, a member of the steering group that developed the Institute of Internal Audit’s Code of Practice for Internal Auditors, Chair of Care International UK, has 19 years in practice under her belt with PwC, and is an independent consultant advising on audit, risk and control. In this capacity she worked with ICAEW’s Audit and Assurance Faculty on the recently-published faculty report ‘Developing a Meaningful Audit and Assurance Policy’, although the views she expresses in this article are her own.
This month’s top technical stories on ICAEW Insights include news on the fourth self-employed grant, new EU sustainability disclosure rules and how auditors can report on irregularities, including fraud.
Need to knowSEISS 4 claims open up: HMRC has contacted those potentially eligible for the fourth Self-employment Income Support Scheme grant. ICAEW’s Tax Faculty has updated its guidance and a webinar is available to all members.
Working from home tax relief continues, but new claims required: Employees working from home due to the coronavirus pandemic can continue to claim tax relief on costs not reimbursed by their employer, but a new claim will need to be made for the 2021/22 tax year, HMRC has confirmed.
Economic Crime Economic crime is causing increasing disruption to every type of organisation, from established businesses to charities and public sector bodies. The frequency of attacks is rising, and criminals are becoming more sophisticated, supported by advances in technology. In these articles and videos, we explore the latest trends and perspectives on economic crime from around the world, and look at how chartered accountants can help prevent it happening. 19-04-2021
The Fraud Advisory Panel has outlined five key recommendations to combat social media fraud as online scammer statistics continue to surge. 16-04-2021
The European umbrella body has stressed the need for a more holistic approach to tackling fraud, following concerns that a disproportionate focus on auditors will do little to reduce the ever-growing risks.