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FRC calls for comments on the IAASB’s Exposure Draft on an auditor's responsibilities relating to 'other information'

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23 May 2014

The Financial Reporting Council (FRC) has requested comments from interested parties on the International Auditing and Assurance Standards Board’s (IAASB’s) recently issued revised Exposure Draft of a revised International Standard on Auditing 720 (ISA 720) dealing with an auditor's responsibilities relating to 'other information'. The FRC intends to use comments received to assist it in developing its response to the IAASB and to assist it in developing proposals for the adoption into the UK equivalent ISA (UK and Ireland) 720 Section A (Revised October 2012).

The IAASB issued an Exposure Draft for a revised International Standard on Auditing, ISA 720 ‘The auditor’s responsibilities relating to other information in documents containing or accompanying audited financial statements and the auditor’s report thereon’ in November 2012.  The revised Exposure Draft responds to significant concerns raised in response to the IAASB's original proposals.

The FRC’s equivalent ISAs (UK and Ireland) are largely developed from the ISAs published by the IAASB.  The FRC consider that some of the IAASB proposals are consistent with revisions made to ISA (UK and Ireland) 720 (Revised October 2012) Section A – 'The auditor’s responsibilities relating to other information in documents containing audited financial statements' (link to FRC website).  The FRC also comments that a number of the IAASB proposals would be new in the UK.

The invitation to comment seeks to:

describe and distinguish the proposed changes that the FRC has already incorporated into ISA (UK and Ireland) 720 Section A (Revised October 2012) and the proposed changes that would be required to be made to ISA (UK and Ireland) 720 Section A, if the revised ISA were to be adopted for application in the UK and Ireland.

The FRC are keen to understand from respondents whether, and if so how, the proposed changes should be adopted in the UK through amendments to ISA (UK and Ireland) 720 (Revised October 2012) Section A “having regard to the inter-relationship between the IAASB’s proposals and the changes previously made by the FRC”. 

Comments are invited by the FRC until 18 June 2014.

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