The Financial Reporting Council (FRC) is seeking feedback on a number of proposed revisions to existing International Standards on Auditing (ISAs) and the introduction of a new standard covering auditor reporting.

The International Auditing and Assurance Standards Board (IAASB) has issued an exposure draft which proposes significant changes to five current ISAs. These are ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements; ISA 260 (Revised), Communication with Those Charged with Governance; ISA 570 (Revised), Going Concern; ISA 705 (Revised), Modifications to the Opinion in the Independent Auditor's Report; ISA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report.

There is also an ED for the proposed new ISA 701, Communicating Key Audit matters in the Independent Auditor's Report, as well as proposed conforming amendments to various other ISAs.

With the exception of ISA 700, the ISAs are used as the direct basis for the FRC's equivalent ISAs (UK and Ireland), with any changes to arrive at the ISAs (UK and Ireland) clearly identified in the text.

The FRC has not adopted ISA 700 in this direct manner, although it reflects the requirements of the IAASB standard to the extent necessary to ensure compliance. Instead, ISA (UK and Ireland) 700, The Auditor's Report on Financial Statements (Revised June 2013) also reflects differences in the layout and wording of auditor reports from those set out in ISA 700 in response to feedback received from stakeholders about effective auditor reports.

There is an explanation available on the FRC website covering how the new proposals relate to changes made recently by the FRC to ISAs (UK and Ireland) 260 and 700 and the UK Corporate Governance Code.

Any comments on the exposure draft should be made to FRC by 1 November 2013 to assist in the development of its response to the IAASB.

Copies of the IAASB's exposure draft are available from the IAASB's website HERE