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FRC comment letter on the IAASB’s proposed strategy and work plan

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01 Apr 2014

The Financial Reporting Council (FRC) has issued their comment letter on the International Auditing and Assurance Standards Board’s (IAASB’s) consultation paper ‘The IAASB’s proposed strategy for 2015-2019 and proposed work programme for 2015-2016’.

The consultation paper outlines three key strategic objectives around financial statement audits, global developments and collaboration, and puts forward a work plan for 2015-2016 which prioritises the topics of quality control, professional scepticism and special audit considerations relevant to financial institutions. 

The FRC comment that the strategic objectives set by the IAASB appear to be “on-going operational objectives” and would like these to be revised to “present more clearly forward looking strategic objectives”.  A number of recommendations to revise the objectives are made in the comment letter. 

Regarding the proposed work plan for 2015-2016, the FRC comment that although they “support the projects that have been identified as priorities”, the IAASB should “look for ways of increasing the number of projects it can undertake in the public interest”.  A number of ways as how this may be achieved are put forward by the FRC. 

The views of the FRC are supported by the Association of Chartered Certified Accountants (ACCA) (link to ACCA website) who comment that although a "sensible approach has been taken to develop a work programme that focusses on fewer topics" they still saw a "need" to expand upon the projects included within the work programme.  The ACCA would have liked the work programme to include time devoted to "matters identified by the ISA Implementation project, particularly in relation to audits of group financial statements and identifying and assessing risks" and also the IAABs's other standards.

The full comment letter can be obtained from the FRC website.

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