FRC consults on effectiveness of auditing standards
20 Nov, 2018
The Financial Reporting Council (FRC) has launched a consultation to determine how effective the 2016 changes to ethical and auditing standards have been in delivering high quality audit and whether further steps are now needed to strengthen auditor independence, reduce conflicts, improve quality and preserve trust in independent audit.
The standards were introduced to support the implementation of new UK legislation in June 2016 addressing the requirements of the EU's Audit Regulation and Directive.
The aims of the review of the standards are to:
- gather feedback on whether the changes made to standards have had the desired impact on auditor independence, prevention of conflicts and on audit quality. Responses to the call for feedback will supplement lessons learned from the FRC's own audit inspection and enforcement work;
- consider whether further measures are needed to address weaknesses, and ensure that audit better meets the expectations of those who rely on it; and
- consider whether auditor reporting and communication with those charged with governance could be further strengthened to better meet the needs and expectations of users.
The press release and call for feedback document are available on the FRC website and feedback should be received by Friday 15 February 2019.
Our response to this call for feedback can be found by clicking here.
