The Practice Note has been been significantly revised to reflect the updated regulatory regime, the implementation of FRS 102 and the implementation of revised International Standards on Auditing (ISAs) (UK) in 2016.

The FRC has also removed material which duplicated the ISAs and where no additional application guidance was required.

The revised Practice Note now takes account of master trusts which are not specifically addressed in the current version, and includes updated material for the auditor’s responsibilities for statements of contributions and on liaising with scheme actuaries. The changes are summarised in the consultation paper. We have also used the revision to prompt enhanced auditor scepticism when making an assessment of going concern in respect of a scheme that is subject to audit.

The proposed changes help to ensure that the Practice Note will continue to support the delivery of high quality audit for pension schemes.

Subject to consultation, the FRC will issue a final version of the revised Practice Note in the autumn, and at the same time will withdraw Practice Note 22 – The Auditors’ Consideration of FRS 17 – Retirement Benefits – Defined Benefit Schemes. Necessary guidance is now included in auditing standards issued by the FRC.

In the consultation, the FRC has included a question seeking stakeholder views as to whether the guidance in the Practice Note needs to be expanded to cover any additional issues, in a sector which is of significant public interest.

The consultation closes on 30 June 2017 and a finalised PN15 is due this autumn.

FRC Exposure Draft: Practice Note 15 (Revised) The audit of occupational pension schemes in the United Kingdom