The Financial Reporting Council (FRC) has issued final changes to two core UK auditing standards that set out auditors’ responsibilities when dealing with fraud and going concern.
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. Both were revised in March 2026.
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 ISA 240 sets out stronger and clearer obligations for auditors on fraud, including enhanced risk assessment procedures and more transparent audit reporting, especially for engagements involving publicly traded entities.
Revisions to ISA (UK) 570 address the way auditors assess and report on an organisation’s ability to continue as a going concern. The updated standard draws on experience from recent corporate failures and is intended to meet rising expectations from investors and other stakeholders.
The FRC stated that these revisions are the outcome of a public consultation process and are aligned with recent amendments made by the International Audit and Assurance Standards Board (IAASB) to equivalent international standards.
According to the regulator, keeping UK requirements closely in step with international standards is viewed as important for maintaining equivalence between UK and global auditing frameworks and for supporting confidence in the UK’s capital markets.
Both updated standards will take effect for audits of financial statements for reporting periods beginning on or after 15 December 2026.
The FRC also pointed out that UK standards had been updated ahead of the IAASB’s most recent changes, meaning that many of the strengthened provisions were already embedded in domestic practice.
It therefore expects that the final revisions will lead to only limited additional work for auditors beyond what is already required under international standards.
