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The Financial Reporting Council (FRC) is the standard-setter for auditing and ethical standards applicable to UK auditors.


Auditing standards

Since 2005 the FRC (and its former operating body the Auditing Practices Board (APB)) has adopted International Standards on Auditing (ISAs) as issued by the International Auditing and Assurance Standards Board (IAASB) with only minor modifications:

  • Additional requirements and application material are included where necessary to deal with the requirements of UK law and regulation. For example, the Companies Act requires an explicit opinion on the consistency of the directors’ report with the financial statements and an additional ISA (UK and Ireland) 720 Section B deals with this duty.
  • A small number of additional requirements and application material included on grounds of audit quality. Prior to 2010 this list was more extensive but since then many of the APB’s previous additions have been included in the IAASB’s own standards.
  • A replacement ISA (UK and Ireland) 700 on auditor reporting. The IAASB allows this standard to be replaced as long as certain core requirements have been met. The UK has moved away from the IAASB’s standard to remove boilerplate and add additional reporting requirements.

These standards are known as International Standards on Auditing (UK and Ireland).

The FRC also issues additional materials:


Ethical standards

The standards for professional ethics for UK accountants are set by:

  • The FRC in respect of auditor independence. Currently known as APB Ethical Standards for Auditors, these are based on section 290 of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA) with additional restrictions where necessary as a matter of European law or UK policy.
  • The relevant professional body in all other areas including standards for professional accountants in business and areas other than independence for accountants in practice including professional appointment, conflicts of interest, fees, agencies and referrals, marketing, gifts and hospitality, custody of client assets, objectivity and independence for engagements other than statutory audits. For example, see the ICAEW Code of Ethics. All of the professional bodies’ codes are based on the IESBA Code.


Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.