The Association of Chartered Certified Accountants (ACCA) has endorsed the UK Financial Reporting Council’s (FRC) updated auditing requirements on fraud and going concern.
This support follows the FRC’s publication of final amendments to two key UK auditing standards last week.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The updated standards are ISA (UK) 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, and ISA (UK) 570, Going Concern.
ACCA audit and assurance head Antonis Diolas said: “We welcome the Financial Reporting Council’s finalisation of ISA (UK) 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements and ISA (UK) 570 Going Concern, and are pleased that the FRC has been responsive to our feedback, including supporting convergence with international standards and taking steps to improve usability through the streamlining of requirements.”
The professional body said the revised standards expand and clarify auditors’ duties around fraud and reinforce the work required on going concern assessments.
It also indicated that the changes are expected to lead to more transparent audit reporting, which could provide more useful information for stakeholders when applied in an entity-specific, clear and proportionate way.
ACCA EEMA and UK regional policy development head Jessica Bingham said: “At a time of ongoing economic uncertainty, it is important that auditors are supported by robust, practical and proportionate requirements in these critical areas.
“As implementation progresses, continued focus will be needed to ensure consistent understanding and application, and to mitigate the risk of unintended consequences, including any widening of the audit expectation gap.”
The ACCA said it intends to continue assisting members and the wider profession through guidance and training as the new standards are rolled out.
The organisation added that it will continue to engage with the FRC as the revised rules are implemented and any future changes are considered.
