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FRC announces audit thematic reviews for 2019/20

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20 Nov 2018

The Financial Reporting Council (FRC) has announced its audit thematic reviews, priority sectors and audit areas of focus for 2019/20.

The thematic reviews, which will supplement the FRC’s routine AQR monitoring programme are:

  • Audit Quality Indicators: an assessment of development and use of AQIs by the UK audit firms.
  • The use of technology in audits: review of the progress that audit firms have made since the report on the use of data analytics in January 2017 and the potential impact on audit quality.

These thematic reviews will focus on aspects of audit practice across various firms to identify both the scope for improvement and good practice.

The FRC has indicated that the corporate reports and audits selected for review in 2019/20 will have regard to the following priority sectors:

  • Financial Services, with emphasis on banks, other lenders and insurers
  • Oil and Gas (CRR only)
  • General Retailers; and Retail Property
  • Business Support Services
  • Construction and Materials 

As part of the audit monitoring programme in 2019/20, the FRC will pay close attention to the auditor’s work on:

  • Going concern and the viability statement
  • The Other Information in the Annual Report
  • Long-term contracts
  • The impairment of non-financial assets

The FRC will publish its 2018/19 thematic review of “The Auditors Work on Other Information in the Annual Report” later in 2018, followed by a report on Audit Firm Transparency Reporting in the first quarter of 2019.

A press release is available on the FRC website here.

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