The new guidance includes a framework for making professional judgements followed by a series of illustrative examples showing how professional judgement might be applied in practice.  The FRC anticipates that the guidance will improve audit quality by enhancing the consistency and quality of professional judgement exercised by auditors.
 
The guidance will be of particular use for auditors and central technical teams but will also have wider interest for those interested in audit quality, such as audit committee members and investors.  It is non-authoritative and is intended to be persuasive rather than prescriptive, encapsulating good practice.  However, practitioners who chose not to use or consider this guidance will need to be prepared to explain how they have complied with the relevant engagement standards.

The full report, framework, illustrative examples and expectations paper are available on the FRC website.  A webinar on the guidance will be held on 26 July 2022.