• Register
Return to: Home > News > Standards > FRC consults on auditor discloser requirements

FRC consults on auditor discloser requirements

The UK Financial Reporting Council (FRC) has launched a consultation on the disclosures within the auditor's report.

The consultation, Consultation Paper: Revision to ISA (UK and Ireland) 700, includes proposals that require the auditor to disclose information about the audit within the auditor's report itself to enhance the value of audit for investors.

According to the proposals, the auditors should explain within the report how they applied the concept of materiality. They should
also specify which risks of material misstatements were identified and how this affected the audit strategy as well as give a summary of how the audit scope responded to these matters.

The FRC said the proposals have been made in response to report criticism and in the hope to influence the work of others seeking to enhance the communicative value of the auditor's report; specifically the European Union and the International Auditing and Assurance Standards Board.

"The Consultation Paper proposes a step change from the traditional binary pass/fail model of audit report. Such reports have increasingly been criticised as being uninformative by investors, and other users of financial statements," FRC's Audit and Assurance Council chairman Nick Land said.

Institute of Chartered Accountant in England and Wales executive director Robert Hodgkinson said there are "clear benefits of having consistent standards across countries. It is therefore important the FRC's efforts are coordinated with international work in this area."

Deadline to comment on the proposals is 30 April.

Related link:

Financial Reporting Council

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.