The regulator said as well as revisions to UK auditing standards and the introduction of FRS 102, the changes also reflect continuing developments in regulatory codes and guidance issued by The Pensions Regulator (TPR), changes in relevant legislation, and the increase in master trusts in the pension sector.

The practice note is intended to assist auditors in applying the requirements of, International Standards on Auditing (ISAs) (UK), which apply to all audits in respect of accounting periods commencing on or after 17 June 2016.

Practice note 15 sets out the special considerations relating to the audit of occupational pension schemes which arise from the individual ISAs (UK).

The FRC states: ‘This Practice Note does not and is not intended to provide detailed guidance on the audits of occupational pension schemes, so where no special considerations arise from a particular ISA (UK), no material is included.

’This Practice Note does not contain commentary on all of the requirements included in the ISAs (UK) and reading it should not be seen as an alternative to reading the relevant ISAs (UK) in their entirety.’

Occupational trust based pension schemes are those run by employers for the benefit of their employees. Most occupational pension schemes in the UK are required to produce annual financial statements and to appoint a scheme auditor. There are some exemptions from these requirements although where statutory provisions do not require an audit, a scheme’s trust deed and rules may still require its financial statements to be audited.

Trustees of nearly all occupational pension schemes are required by regulations made under the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations SI 2013 to make available to members an annual report within seven months of the scheme year end. This must include an independent auditors report on the financial statements.

Trustees may decide to obtain audited financial statements other than at the statutory accounting date for reasons other than the requirement to include them in the annual report, for example for the purposes of an actuarial valuation.

An exposure draft of proposed changes was issued in April 2017.

The FRC is withdrawing Practice Note 22 – ‘The auditor’s consideration of FRS 17 ‘Retirement Benefits’ - Defined benefit schemes’. This was issued in 2002 and the guidance in it has been superseded by the UK auditing standards issued since then.

Practice Note 15 (Revised) The audit of occupational pension schemes in the United Kingdom is here.

Report by Pat Sweet and Amy Austin